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Telangana’s rural and urban local bodies are facing a severe funding crisis with over Rs 5,000 crore in pending dues, including Central grants and State matching funds, triggering a prolonged cash crunch and delaying civic infrastructure and development works.
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Finance Minister Nirmala Sitharaman tabled the 16th Finance Commission report in Lok Sabha, outlining tax devolution between Centre and states for 2026–2031. Headed by Arvind Panagariya, the panel proposes formulas guiding Centre–state fiscal relations
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The Union government has approved the release of Rs 2,500 crore in 15th Finance Commission funds for Telangana’s gram panchayats after a two-year gap. However, uncertainty persists over whether the money will fund new works or clear long-pending dues.
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Former Minister T Harish Rao criticised the Congress government for allegedly neglecting gram panchayats over the past two years, leaving them without funds and delaying elections.
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Telangana’s tax contribution to the Centre has surged nearly fourfold in five years, but the State receives only 42% in return. Economists warn that rising cesses and an inequitable devolution formula are undermining federal balance and disadvantaging high-performing States
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The Union Finance Ministry’s data reveals that Telangana contributed Rs 4.32 lakh crore in taxes and GST between 2020-21 and 2024-25 but received only Rs 1.84 lakh crore in return through devolution and grants.
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The eleventh Formation Day of Telangana State was celebrated with grandeur across the erstwhile Adilabad district on Monday
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Members of the 16th Finance Commission visited the Tirupati Municipal Corporation's integrated solid waste management plant to observe how waste is converted into monetisable material
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In a series of posts on X, economic analyst Aravind Varier highlighted systemic drawbacks in the resource distribution criteria used by Finance Commissions since the 1970s
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The TRS government has undertaken a premeditated, strategic reconstruction plan without much help from the Centre, making use of its own resources
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Jharkhand urban local bodies (ULBs) missed a Rs 253.46 crore grant under the 14th Finance Commission for not conducting elections on time.
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This was informed by union Minister of State for Home Nityanand Rai in a reply to YSR Congress Party member V. Vijay Sai Reddy in the Rajya Sabha
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The Finance department said the amount accounted for only 30 per cent of the Central taxes as against 41 per cent as suggested by the 15th Finance Commission.
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By Seela Subba Rao Most of the federal governments are vested with powers to raise tax revenues while the States are responsible for undertaking a large part of the public expenditures. The allocation of taxation powers vis-à-vis responsibilities per se creates an imbalance known as vertical imbalance. Further, the existence of vast regional disparities contributes […]
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The grants are released as per the recommendations of the Finance Commission in monthly instalments to meet the gap in Revenue Accounts of states post devolution.
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According to the CAG report, the fiscal deficit was 3.11% of GSDP in 2018-19 i.e. within 3.25% prescribed by the 14th Finance Commission and 3.5% target set out in MTFP Statement of the State
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"The Centre has been reducing the rightful share of funds to Telangana State rather than providing more funds to the progressive State which has been contributing to the nation's development," he said
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Finance Minister says funds sanctioned by Finance Commission alone reduced from Rs 1,847 cr to Rs 1,365 cr
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As per the 15th Finance Commission report for 2021-26, Telangana will receive Rs 1.09 lakh crore as its share of tax devolution and also grants-in-aid from the Central pool of Rs 52.41 lakh crore.
