Centre short-changes Telangana, alleges Tummala
Agriculture Minister Tummala Nageshwara Rao on Tuesday accused the Centre of financial discrimination against Telangana and other southern states, alleging that the Union government’s economic policies are politically motivated and violate the principles of fiscal federalism.
Addressing the media here on Tuesday, the minister said that while the Centre promotes the slogan of “Vikasit Bharat,” it continues to neglect and discriminate against revenue-generating southern states, particularly Telangana.
Citing official data, Tummala said that between 2018–19 and 2022–23, the Centre collected Rs.90.80 lakh crore in taxes across the country, of which Rs.22.86 lakh crore—more than one-fourth—came from the southern states. However, he pointed out that only 16.3 percent of these funds were returned to the southern states.
“This is completely against the spirit of fiscal federalism,” the minister said.
He alleged that while southern states receive an average of only 30 paise for every rupee contributed in taxes, northern states such as Bihar and Uttar Pradesh receive nearly Rs 4 per rupee. “This dangerous imbalance will widen economic disparities and deepen the north-south divide,” he warned.
Referring to a reply given by a Union Minister in Parliament during the December session, Tummala said that in 2024–25, the Centre collected Rs.1,33,208 crore in taxes from Telangana. In return, the state received Rs 27,050 crore as share in central taxes, Rs.7,913 crore as Central grants, and Rs.16,762 crore under centrally sponsored schemes—totalling Rs.51,725 crore.
“Even this figure includes scheme-related funds. The amount that Telangana can use independently is far less,” he clarified.
The minister said Telangana is already losing around Rs.8,000 crore annually due to GST amendments. He also criticised the 16th Finance Commission for excluding revenue deficit grants that were recommended by the 15th Finance Commission.
“As a result, Telangana faces the risk of losing another Rs.5,000 crore through the withdrawal of sector-wise and special grants,” he said.
“This is not merely a financial issue—it is a political decision,” Tummala alleged. “There is a clear attempt to weaken strong states and make them economically dependent.”
He further accused the Centre of releasing fewer funds to southern states, especially those where the BJP is not in power, in order to maintain political dominance in the region.
Stressing the need to uphold the federal structure, the minister said states are partners in governance and not dependent on the Centre’s generosity. He urged the Union government to ensure justice to revenue-contributing states if the goal of Vikasit Bharat is to be achieved.
