The Government of India has started devolving funds to the newly created State of Telangana from today. As per Thirteenth Finance Commission’s (TFC) recommendation, the share of States in the central divisible pool is devolved to the States on every first working day of the month. Telangana State has come into existence today vide Andhra Pradesh Re-organisation Act, 2014. Hence, the share of erstwhile State of Andhra Pradesh has been apportioned between the successor States and devolved to them separately.

The Presidential Order to the Fourteenth Finance Commission for taking into account the resources available to the successor States and making recommendations with respect to both the successor States has also been sent for notification.

Devolution of central funds to successor state Telangana begins; Presidential order sent to finance commission to account for successor resources. The central government has commenced devolution of central funds to Telangana by apportioning the former share of undivided Andhra Pradesh in line with the Thirteenth Finance Commission's monthly distribution mechanism, paying the apportioned shares separately to each successor State. A Presidential Order has been sent to the Fourteenth Finance Commission to take into account resources available to the successor States and to make recommendations with respect to both successor States, and that Order has been sent for notification.