Hyderabad: The Centre told the Lok Sabha that it collected ₹4,35,919 crore from Telangana in direct and indirect taxes between 2019–2025. However, during the same period, it gave back only ₹3,76,175 crore through tax devolution, grants and schemes.
The Finance Ministry shared the data in response to a question on year-wise allocations and collections. Direct taxes rose from ₹14,045 crore in 2019–20 to a provisional ₹97,861 crore in 2024–25. IGST collections increased from ₹10,936 crore to ₹18,454 crore, and CGST from ₹9,406 crore to ₹16,893 crore.
Tax devolution totalled ₹1,17,860 crore. Central Sector Schemes contributed ₹1,22,549 crore, and Centrally Sponsored Schemes added ₹81,506 crore. Finance Commission grants made up ₹16,120 crore, while other transfers and loans came to ₹30,950 crore.
Telangana Tax: Revenue mismatch between Centre and State
The Centre clarified that these figures include funds sent to the state treasury and implementing agencies. It added that all allocations followed Finance Commission guidelines and legal mandates.
The Telangana tax data revealed that while state contributed significantly to national revenue, the central funds returned were lower. The issue of state-wise fund distribution has been a continuing point of debate between states and the Centre.
