If the 131st Amendment Bill passes as is, it will redefine how half of India participates in its democracy — this is not regional, but a national crisis
As Telangana’s per capita income rises and demographic indicators improve, its share in central tax devolution shrinks, exposing the contradictions within the spirit of cooperative federalism
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.
Despite Prime Minister Modi’s talk of ‘Team India’ spirit, over the last few years, there has been a systematic attempt to chip away at the core principles of fiscal federalism and thereby weaken the States
However, there was uproar over Southern States, especially Telangana, getting lesser share, while the northern States such as Uttar Pradesh benefitting immensely.
Hyderabad: The Telangana’s argument over the Central government’s poor and unfair tax devolution to States, especially those contributing to the national GDP in a big way, has found resonance in Tamil Nadu. Former union Minister A Raja on Sunday reportedly castigated the BJP government at the Centre for working against the federal spirit of the […]
Hyderabad: The TRS has condemned the unconstitutional practice being adopted by BJP-led Central Government in collection of taxes through Cess and demanded abolition of the practice. Moving a resolution to this effect during the TRS plenary here on Wednesday, Finance Minister T Harish Rao urged Chief Minister K Chandrashekhar Rao to spearhead an initiative taking […]
Hyderabad: Telangana will receive Rs 1,998.62 crore from the Centre towards tax devolution for the month of November. The funds are being released by the Union government as part of two instalments of tax devolution to States totalling to Rs 95,082 crore, as a step towards boosting investment in infrastructure sector. The two instalments were […]
The tax devolution to States was heavily impacted as there was a drop in revenue receipts of the Union government. Secondly, performing States have been penalized by the 15th Finance Commission through its unacceptable methodology.
