If this agreement is not revised by an earlier agreement, it will be reviewed after ten years. E. Spending distribution between the Telangana and Andhra regions. The allocation of expenditure between state resources is within the jurisdiction of the government and state legislation. However, since it was agreed between the representatives of Andhra and Telangana that the centralised and general management expenditures of the new State should be borne proportionally by the two regions and that the balance of revenues should be reserved for development expenditures in the Territory of Telangana, the State Government is free to act in accordance with the terms of the budget agreement. The Indian government proposes to draw the attention of the Chief Minister of Andhra to this particular understanding and to express the hope that it will be implemented. The Srikrishna Justice Committee, which examines the feasibility of a separate state from Telangana, is expected to present its report by tomorrow. It might be useful at this stage to review the recommendations of the Commission for the Restructuring of States (SRC), envisaged in 1953 – the Commission which had first examined the Telangana issue in detail. It should be kept in mind, however, that some of these arguments and recommendations may not be applicable today. Background Before independence, Telangana was part of the State of Hyderabad of Nizam and Andhra in the former madras province of British India. In 1953, Telo-speaking areas were cut off from Madras province due to the agitation of leaders such as Potti Sreeramulu. This led to the formation of Andhra Pradesh, the first state formed on the basis of language. Immediately thereafter, in 1953, the States Reorganization Commission (SRC) was appointed.
SRC did not support telangana`s immediate merger with Andhra and proposed to create a state with a unification provision after the 1961/62 parliamentary elections if a resolution could be adopted by a 2/3 majority in the Telangana Assembly. Subsequently, however, a “gentlemen`s agreement” was signed between the leaders of the two regions, which led to a merger. The agreement provided certain guarantees for Telangana – for example, a “regional council” for the entire development of Telangana. In 1956, a united Andhra Pradesh was founded. In the following years, demonstrations on the ground continued in Telangana; Major riots were recorded in 1969 and the 2000s. The CBC 1953 Report The cbc`s full report is available here. Four prominent telangana and Andhra leaders signed the agreement. It was also agreed that the provisions of this agreement would be reviewed after ten years. However, the Heads of State and Government could not agree on the following two issues, which are not mentioned in the agreement. The agreement was aimed at allaying the fears of the people of Telangana by protecting the people of Telangana.