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 gentlemen`s agreement of Andhra Pradesh has a precedent in the Sri-Bagh Pact of 1937, which was between the leaders of Rayalaseema and Coastal Telugu, the districts of Madras state spoke to give assurances to Rayalaseema in exchange for his willingness to join the state of Andhra. This non-binding pact has been largely forgotten, probably because of the region`s strong political representation in the governments of the federal states since its independence. If this agreement is not revised by an earlier agreement, it will be reviewed after ten years. Four prominent telangana and Andhra leaders signed the agreement.
The Gentlemen`s Agreement in Andhra Pradesh was signed between the leaders of Telangana and Andhra before the creation of the Indian state of Andhra Pradesh in 1956. The agreement provided safeguards to prevent discrimination in Telangana by the Andhra Pradesh government. Violations of this agreement are cited as one of the reasons for the creation of a separate state for Telangana.  The agreement was aimed at countering the fears of the people of Telangana by providing protection measures to the people of Telangana. However, the Heads of State and Government could not agree on the following two issues, which are not mentioned in the agreement. The Gentlemen`s Agreement of Andhra Pradesh (1956) refers to the agreement signed between the leaders of Telangana and Andhra before the creation of the state of Andhra Pradesh in 1956. The agreement was intended to address the fears of the people of Telangana by offering protection to the people of Telangana. The alleged violations of this agreement led to the Telangana movement in 1969 and are cited as one of the main reasons given for calling for the separation of the state for Telangana. g.
The cabinet will be made up of 60 to 40 per cent members for Andhra and Telangana, and 40% of Telangana`s ministers will be Muslims from Telangana. If the Chief Minister comes from one region, the other region should receive the Dy Chief Ministership. 6. The Regional Committee will consider the following issues: -Legislators representing the nine districts of Telangana The CM or Vice-President CM, who comes from Telangana, will lead the Council and ministers from the Telangana cabinet will be particularly invited. C. The position of the Urdu. The Indian government would advise the State Government to take appropriate measures to ensure that the current position of the Urdu is maintained in the administrative and judicial structure of the state for a period of five years. The States Reorganisation Commission (SRC) recommended in 1955 to “constitute the territory of Telangana in a separate state, which can be called the State of Hyderabad, with the provision of its union with Andhra after the general elections, which are probably held in or around 1961, when the legislative branch of Hyderabad State ruled by a two-thirds majority in favour of such an association.”  4.