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
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.
