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. 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 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.  6. The regional committee will address the following issues: 5. The recommendations proposed by the regional committee are generally accepted by the government and by national legislation. In the event of a disagreement, the governor whose decision is binding is referred to. When Hyderabad State, under the leadership of The Hyderabad Nizam of India, was merged into Operation Polo, a debate took place in the Telugu-speaking districts of Hyderabad State (1948-56) (also known as Telangana) on whether to join the newly formed Andhra state, cut off from the districts of Madras State that speak Telu.