Hyderabad is officially the capital of the state of Telangana. After the bifurcation of Andhra Pradesh in 2014, the city was designated as the joint capital for both Andhra Pradesh and Telangana for a period of up to 10 years as per the Andhra Pradesh Reorganization Act, 2014. However, during this period, Hyderabad serves as the full-fledged capital of Telangana, while Andhra Pradesh is allowed to use the city’s administrative facilities.

The revenue generated by Hyderabad belongs to Telangana, and Andhra Pradesh has to pay taxes to the Telangana government for using buildings and infrastructure in the city. Over time, Andhra Pradesh has been developing its own capital in Amaravati, and many administrative functions have been shifted there to reduce dependency on Hyderabad.