Fees ReImbursement – Emotions being played without thinking economics

Andhra Pradesh state has been divided and now there are two states in existence. There is a major discussion around the way the Fees ReImbursement is to be done for the students. The political parties are playing sentiments of the people saying that it is the future of the students and next generation.

TRS insists that they will reimburse only to the students native to Telangana and it is fair. However, the cut off date for nativity is being played with by the government of Telangana. It is being said that the nativity can only be established if and only if the father of the student is a native of Telangana as on 1956. This clause will be really tough one as many Telangana students will miss out on the reimbursement.

On the other hand, the Government of Andhra Pradesh is playing into the hands of the Sentiment being played out. They are saying that they will take care of all Andhra students. This is unfair to the people of Andhra Pradesh. Being poorer of the two states, Andhra Pradesh need money to develop the state. It is after all the money of the people which being used for this purpose.

One important thing being missed out on the whole issue. The ECONOMICS of the whole issue. Most of the students belonging to Andhra Pradesh are studying in the state of Telangana. The number of students is clearly in favor of the native of AP and studying in Telangana. The important thing is that the colleges too benefit from this arrangement as they fill the seats. It is not the students but the Institutions which benefit in this arrangement.

If the Government of Andhra Pradesh pays for the students studying in Telangana, the Money is spent in Telangana, taxes paid in that state. Indirectly people of Andhra Pradesh contribute to the taxes of Telangana. Adding to the problem, they also contribute to the downstream economy.

The institutions in Andhra Pradesh are facing the problem of un filled seats because of the Hyderabad effect. The state is also losing out on the downstream economy such as PG accommodation, spend in the tourism etc. Government is losing taxes not only on the education but the downstream activities.

Government of Andhra Pradesh will help the education sector by making sure that these seats are filled with the students of the state. They shall think of making sure that the students currently struck nowhere in the state of Telangana, come back to Andhra Pradesh and join the local institutions.

There is nothing wrong of loss for the students, as they are contributing to their own economy. At least they are not draining the economy in favor of other states.

Here is my solution to this problem.

1. Decide the nativity of the students as per the norms whatever the government thinks fit.

2. Facilitate the Movement of students who are native to the state of Andhra Pradesh to the local institutions.

3. Make sure that it is a condition for the reimbursement of fees to be paid by the Government of Andhra Pradesh.

4. Donot Pay the fees for the students who are unwilling to shift to the local institutions.

This way the government can ensure both students are reimbursed and the money spent is used for the development of the state.

The institutions benefit so that they can improve the facilities. The area around the institutions can be improved due to the improved student strength. this may include hotels, PGs, Local Kirana Stores, Clothing etc.

This is a one shot two birds approach which can be taken by the government of Andhra Pradesh.

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