Centre’s Tax Share: AP Bags Double of Telangana

The central government has officially released the data pertaining to the tax devolution process, allocating significant amounts of tax money to the respective state governments.

According to the latest update, the Union Government released ₹1,01,603 crore to the states as an advance instalment of tax devolution.

Looking at the allocations for Andhra Pradesh and Telangana, the difference is quite evident. Andhra Pradesh received ₹4,112 crore as part of the devolution, which is a fairly substantial amount compared to other smaller states. Telangana, however, was allocated just ₹2,136 crore.

Given the fact that the TDP holds a significant position in Parliament and the prevailing political numbers, the Centre seems to be extending more support towards Andhra Pradesh. Telangana, on the other hand, despite Chief Minister Revanth Reddy’s efforts to maintain cordial ties with the Centre for the sake of state finances, appears to have been sidelined.

In essence, Andhra Pradesh has received nearly double the tax share of Telangana.

For perspective, Uttar Pradesh received ₹18,227 crore while Bihar got ₹10,219 crore. Interestingly, Maharashtra, which contributes the highest tax revenue to the Centre, received only ₹6,418 crore.