Inordinate delay in release of funds by neighbouring Andhra Pradesh for expenditure incurred by the Telangana government on constitutional and statutory bodies like High Court, Raj Bhavan and other common institutions that served both the States is continuing.

The issue figured yet again in the Lok Sabha on Monday (August 11, 2025) when Congress MP Chamala Kiran Kumar Reddy wanted to know about the status of reimbursement of pending dues. Union Minister of State for Finance Pankaj Chaudhary acknowledged that the State Government had addressed a communication seeking reimbursement of expenditure incurred on the constitutional and statutory bodies that served both the States when Hyderabad was common capital. The two State governments were asked to reconcile the expenditure with Principal Accountant Generals and the Union Home Secretary had also addressed a communication to the Comptroller and Auditor General of India on June 25 this year for expediting the reconciliation of the expenditure, he said.

Almost two months passed since Union Home Secretary Govind Mohan addressed the communication to the CAG, there has been no progress on the issue.

The State Government has been seeking release of ₹408.49 crore incurred by it on the maintenance of the common institutions which had not been reimbursed despite multiple communications and agreements. Deputy Chief Minister Mallu Bhatti Vikramarka sought the intervention of Union Finance Minister Nirmala Sitharaman for facilitating expeditious release of funds by the neighbouring State including interest.

“Emphasising cooperative federalism and fair distribution of expenses will highlight the importance of collaborative governance and adherence to the commitments made during bifurcation reinforcing the Centre’s role as an arbiter,” he said in a communication to the Union Finance Minister in the past.