A state split divides tax bases, revenue flows, expenditure commitments and liabilities. Part V addresses public finance; Section 46 concerns distribution of Finance Commission awards and possible central grants. Its first sub-section apportioned the Thirteenth Finance Commission award for the old state and called for separate Fourteenth Finance Commission consideration. Its next provisions address appropriate grants and a special development package for backward AP areas, particularly Rayalaseema and north coastal regions.

These provisions are not a self-executing cheque for any amount a commentary writer chooses. A statutory commitment or discretion must be followed through budget heads, sanction and releases. The Finance Commission's recommendations, Union allocations and actual AP receipts each answer different questions. The Act's language must be read accurately: “may” and “shall” are not interchangeable, and a backward-area package is not automatically Special Category Status. The book's finance diagram treats obligation, allocation, release and expenditure as separate boxes.

Worked example: A grant question combines the old state's Finance Commission award, a later revenue-gap grant and backward-area assistance. Part V and Section 46 address distinct finance issues. Put each amount under its issuing authority, award period and stated purpose. A figure announced for an undivided state cannot be credited wholly to successor AP merely because a current AP budget quotes it for historical context.

Active recall: What does Section 46 cover? Which two AP regional groups are explicitly mentioned for backward-area incentives?