HYDERABAD: While the Union government has collected Rs 2,34,469.77 crore in direct taxes and Central Goods and Services Tax (CGST) from 2019-20 to 2023-24 from Telangana, it has released Rs 90,809.94 crore to the state during the same period.
According to details submitted by the Finance Ministry to Parliament, in 2019-20, Telangana contributed Rs 23,452.15 crore to the central exchequer in the form of direct taxes and CGST. In return, the state government received Rs 15,987.59 crore under tax devolution.
Similarly, Telangana contributed Rs 24,675.64 crore in 2020-21 and received Rs 12,691.62 crore; in 2021-22, the state contributed Rs 38,115 crore and received Rs 18,720.54 crore; in 2022-23, it contributed Rs 48,275.12 crore and received Rs 19,668.15 crore while in 2023-24, Telangana contributed Rs 99,951.86 crore to the Centre and received only Rs 23,742.04 crore.
Meanwhile, direct tax collection from Telangana significantly increased in this period — by 501% in five years.
While in 2019-20, the Union government collected Rs 14,045.81 crore from Telangana, the collection shot up to Rs 84,439.24 crore in 2023-24. Compared to the 2022-23 collections, there was a 138.3% increase in 2023-24. In 2022-23, the Union government collected Rs 35,433.56 crore.
Officials said that the sharp rise in direct tax collections was due to the Union government’s vigilant and keen monitoring of the collection of income tax and changing norms to curb tax evasion. It is pertinent to note that the Union government does not publicly disclose state-wise data on indirect taxes.
On the other hand, the Union government has generated revenue of Rs 1,23,603.84 crore as corporate tax from Telangana in the last three years.
Of this, Rs 36,526.87 crore was generated in 2022-23, Rs 43,573.59 crore in 2023-24 and Rs 43,503.38 crore in 2024-25 (as of February 28, 2025).