Telangana Gave Centre More Money Than It Got, Says Union FinMin Data
State contributed Rs 4.36 lakh cr, while central allocations totalled Rs 3.76 lakh cr
Hyderabad: Telangana has contributed substantially more to the Centre in taxes than the funds it had received in return over the last six financial years. Between 2019–20 and 2024–25, according to data released by the Union Finance Ministry in the Lok Sabha on Monday.
The Centre collected Rs 4,35,919 crore from Telangana through direct taxes, IGST and CGST, while allocations to the state through tax devolution, grants, schemes and other transfers totalled Rs 3,76,175.19 crore, reflecting a huge gap.
The data was provided in the House in response to the question raised by BJP MP Dharmapuri Arvind.
Telangana’s tax contribution surged sharply during this period, particularly in direct taxes. The state’s direct tax payments rose from Rs 14,045.81 crore in 2019–20 to Rs 97,860.86 crore in 2024-25, cumulatively amounting to Rs 2,74,818.35 crore. The steep rise from 2022–23 onwards — culminating in contributions of more than Rs 84,000 crore and Rs 97,000 crore in the last two years — highlights the state’s expanding economic activity and growing taxpayer base.
IGST collections from Telangana accounted for Rs 86,695 crore over six years. Annual contributions fluctuated marginally in the early years but rose consistently from 2021-22, increasing from Rs 13,238 crore to Rs 18,454 crore by 2024-25. Similarly, CGST contributions totalled Rs 74,406 crore, with yearly collections climbing steadily after a dip in 2020-21, touching Rs 16,893 crore in 2024-25.
Overall, annual tax collections from Telangana increased from Rs 34,388 crore in 2019-20 to Rs 1,33,208 crore in 2024–25, marking a nearly fourfold rise over six years.
In contrast, allocations from the Centre to Telangana were significantly lower. The state received Rs 1,17,860.19 crore as tax devolution, Rs 1,22,549.08 crore through central sector schemes, and Rs 81,506 crore via centrally sponsored schemes.
Another Rs 16,119.82 crore came through Finance Commission grants, while smaller amounts were released towards establishment expenditure (Rs 174.84 crore) and other central transfers (Rs 7,924.91 crore). In addition, Telangana received Rs 30,949.98 crore under other grants, loans and transfers.
Tax devolution to Telangana, which stood at Rs 15,987.59 crore in 2019-20, fell the following year but gradually climbed thereafter, reaching Rs 27,050.25 crore in 2024-25. Allocations under central sector schemes varied across years, peaking in 2022–23 at Rs 25,830.61 crore, before declining to Rs 17,595.39 crore in 2024Rs 25. Centrally-sponsored scheme releases fluctuated but showed a rising trend in the last two years, touching Rs 14,928.02 crore in 2024-25.
The Finance Commission grants, however, saw a declining trajectory, falling from Rs 3,219.03 crore in 2019-20 to Rs 1,631.48 crore in 2024-25.
