The central government’s discrimination against Telangana continues to be evident in the declining share of grants and taxes allocated to the state.
In the financial year 2014-15, Telangana’s total revenue receipts amounted to Rs. 51,041 crores, with 29.98% (Rs. 15,306 crores) coming from the central government. By 2022-23, the state’s revenue receipts surged to Rs. 1,59,350 crores; however, the central government’s contribution dropped to just 20.61% (Rs. 32,847 crores).
This trend has led to outrage as funding from the center decreased by 31.25% in the last nine years. In the 2023-24 financial year, the state finance department initially estimated Rs. 41,259 crores in grant-in-aid from the center but ultimately received only Rs. 4,532 crores, representing a mere 11% of budget expectations. Critics argue that the NDA government is exacerbating the situation by withholding central tax shares and acting in a biased manner regarding grants.
In contrast, BJP-ruled states are receiving substantial grants regardless of budget estimates. For instance, Gujarat has disbursed 102% of its estimated grants, while Haryana received 59.57%, Tripura 45.12%, and Madhya Pradesh 44.10%. In stark comparison, Telangana’s grant-in-aid was limited to just 11%.
While NDA-ruled Bihar receives Rs. 7.26 in return for every rupee paid, whereas Telangana gets only 0.47 paise for the same amount. This disparity highlights ongoing concerns over equitable funding from the central government.