New data presented in Parliament has revealed a significant fiscal imbalance between Telangana and the central government over a six-year period. Union Minister of State for Finance, Pankaj Chaudhary, provided a written statement detailing the financial transactions, showing that the state contributed substantially more to the national exchequer than it received back in allocations.
The Big Picture: A Growing Fiscal Gap
According to the detailed figures, the central government collected a total of ₹4,35,919 crore from Telangana between the 2019-20 and 2024-25 financial years. In return, the state received ₹3,76,175.19 crore in funds allocated by the Centre during the same timeframe. This results in a net difference of nearly ₹60,000 crore, highlighting the state's role as a major net contributor to the national treasury.
The data indicates a clear upward trend in the money flowing from Telangana to Delhi until 2023. Collections from direct taxes and the Goods and Services Tax (GST), along with grants released to the state, consistently increased. However, a pivotal shift occurred in the latter part of the period under review.
The Recent Trend: Collections Soar, Allocations Dip
From 2023 onwards, the financial dynamics changed markedly. While the Centre's revenue collection from Telangana saw a sharp rise, the funds sent back to the state began to decline. The figures for the last two years paint a stark picture of this widening gap.
In the 2023-24 financial year, the central government's collection from Telangana jumped to ₹1,17,820 crore. Against this massive inflow, the state received ₹67,785 crore in return. The following year, 2024-25, saw an even greater disparity. Collections from Telangana rose further to ₹1,33,208 crore, while the central allocation to the state dropped to ₹66,295.36 crore.
Analysis and Political Context
This disclosure is likely to fuel political debate in Telangana, especially concerning fiscal federalism and the state's share of resources. The data provides concrete numbers to long-standing arguments about the distribution of financial resources between the Centre and states. The sharp increase in GST and direct tax collections underscores Telangana's robust economic growth and contribution to the national economy. However, the concurrent decline in central allocations raises questions about the net benefit to the state's development projects and welfare schemes.
The figures, presented by Minister Pankaj Chaudhary, offer a transparent, quantitative look at the financial relationship. They are expected to be a key point of discussion in the state's political discourse, with stakeholders analyzing the implications for Telangana's fiscal autonomy and development planning.
