Telangana’s per capita contribution to the country’s Gross Domestic Product (GDP) has increased by more than 72% over the last six years, according to Minister of State for Finance Pankaj Chaudhary. Despite this expansion, tax devolution from the federal government to the states has remained constant over this time.
In response to a question from CPM MP John Brittas, the Union Minister provided the following figures for Telangana’s per capita net state domestic product in recent years: Rs 1,79,358 in 2017-18, Rs 2,09,848 in 2018-19, Rs 2,31,326 in 2019-20, Rs 2,25,687 in 2020-21, Rs 2,65,942 in 2021-22, and Rs 3,08,732 in 2022-23.
Telangana is the highest contributor to the country’s GDP, followed by Karnataka and Haryana. However, tax devolution from the Centre to the states has not increased equally.
When asked why states receive less revenue devolution than they provide to the Central Government exchequer, the minister highlighted the 15th Finance Commission’s formula, which takes into account a variety of factors in calculating a state’s portion of the divisible pool. The specifics of each state’s revenue contribution to the Central Government exchequer are not kept centrally.
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