**Executive Summary**
This document is an answer to Unstarred Question No. 1541 in the Lok Sabha regarding the reimbursement of expenditure to Telangana by Andhra Pradesh. The Government of Telangana had requested reimbursement of Rs. 408.48 crore for expenditure incurred on common constitutional and statutory bodies in Hyderabad. The document outlines steps taken to reconcile the expenditure, including meetings, correspondence with the Comptroller and Auditor General (C&AG), and the assignment of reconciliation responsibility to the Finance Department of Andhra Pradesh.
**Key Points / Main Content**
* **Reimbursement Request:**
* The Government of Telangana requested reimbursement of Rs. 408.48 crore from the Government of Andhra Pradesh.
* This reimbursement is for expenditure incurred on constitutional and statutory bodies in Hyderabad that served both states.
* Bodies include the High Court, Raj Bhavan, and other common institutions.
* **Reconciliation Efforts:**
* Meetings have been held with the State Governments of Andhra Pradesh and Telangana to discuss the matter.
* Both states were requested to reconcile the expenditure on common institutions with their respective Principal Accountant Generals (AGs).
* The Union Home Secretary wrote to the C&AG to expedite reconciliation of expenditure.
* A joint meeting of Accountant Generals (A&E) of both states and state government representatives took place.
* The Finance Department of Andhra Pradesh is entrusted with reconciling figures related to common institutions, coordinating with the Public Works Departments (PWDs).
* The Principal Accountants General (A&E) of both states have been directed to closely monitor and complete the reconciliation process expeditiously.
**Impact Analysis**
**Government of Andhra Pradesh**
* **Impact:** Responsible for reimbursing Telangana for expenditure on common institutions (amounting to Rs. 408.48 crore). Account reconciliation needs to be performed.
* **Action Required:** The Finance Department of Andhra Pradesh needs to reconcile figures relating to common institutions, coordinating with PWDs, to facilitate reimbursement.
**Government of Telangana**
* **Impact:** Awaiting reimbursement of Rs. 408.48 crore for expenditure on common institutions.
* **Action Required:** Work with Principal Accountant General to reconcile accounts with Andhra Pradesh to facilitate payment.
**Principal Accountant Generals (A&E) of Andhra Pradesh and Telangana**
* **Impact:** Responsible for reconciliation of accounts related to the expenditure on Common Institutions.
* **Action Required:** Closely monitor the reconciliation process to ensure completion expeditiously.
**Comptroller and Auditor General of India (C&AG)**
* **Impact:** Requested to expedite the reconciliation of expenditure on common institutions to facilitate finalization of accounts between the two States.
* **Action Required:** Expedite reconciliation of expenditure on common institutions.
Key Entities Referenced
Telangana: One of the states involved in the reimbursement of expenditure
Andhra Pradesh: One of the states involved in the reimbursement of expenditure
Ministry of Finance: The central government ministry responsible for financial matters, including the reimbursement in question
Comptroller and Auditor General of India (C&AG): The authority responsible for auditing the accounts of the Union and State governments and instrumental in expediting the reconciliation of expenditure
Hyderabad: Location of constitutional and statutory bodies for which expenditure reimbursement is sought.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
LOK SABHA
UNSTARRED QUESTION No. 1541
TO BE ANSWERED ON MONDAY, FEBRUARY 9, 2026/MAGHA 20, 1947(SAKA)
REIMBURSEMENT OF EXPENDITURE TO TELANGANA
1541. Shri Eatala Rajender:
Will the Minister of FINANCE be pleased to state:
(a) whether it is a fact that the State Government of Andhra Pradesh has to reimburse an amount
of Rs. 408.49 crore along with applicable interest to the Government of Telangana towards
expenditure incurred on certain constitutional and statutory bodies located in Hyderabad till
separate institutions are established in Andhra Pradesh, and
(b) if so, the details thereof along with the action taken by the Government to expedite the
reimbursement of the said amount?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) &(b): Yes, the Government of Telangana vide letter no. 6/IST CELL/Fin./2022, dated
05.07.2022 had requested reimbursement of Rs.408.48 crore from the Government of Andhra
Pradesh for the expenditure incurred on constitutional and statutory bodies such as the High
Court, Raj Bhavan, and other common institutions that served both States.
The matter has been discussed in several meetings with the State Governments of Andhra
Pradesh and Telangana. In the last such meeting held in the Ministry of Home Affairs on
03.02.2025, both the State Governments were requested to reconcile the expenditure on common
institutions with the Principal Accountant Generals(AGs) of Telangana and Andhra Pradesh.
Union Home Secretary has written to Comptroller andAuditor General of India (C&AG) on
25.06.2025 for expediting the reconciliation of expenditure on Common Institutions to facilitate
finalization of accounts between the two States by the AGs of Telangana and Andhra Pradesh.
Office of C&AG, vide letter dated 08.01.2026 has informed that a joint meeting of Accountant
Generals (A&E) of both States and state government representatives was held, wherein the
Finance Department of Andhra Pradesh has been entrusted with the responsibility of
reconciliation of figures relating to common Institutions, in coordination with the Public Works
Departments (PWDs). Further, the Principal Accountants General (A&E) of both states have also
been directed to closely monitor the reconciliation process and complete it expeditiously.
***