In the 2025 Union Budget, South Indian states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Kerala were allocated a total of Rs 2,24,746.18 crore combined, meanwhile, North Indian states of Bihar and Uttar Pradesh were allocated a combined total of Rs 3,98,241 crore.

While Andhra Pradesh, ruled by National Democratic Alliance (NDA) partner Telugu Desam Party (TDP) was allocated the highest sum (Rs 57,566.31 crore) in the Union Budget 2025-26, other South Indian states ruled by opposition parties were left with little.

Both Congress-ruled states Karnataka and Telangana were allocated Rs 51,876.54 crore and Rs 29,899.77 crore respectively. DMK-ruled Tamil Nadu was allocated Rs 58,021.50 crore and Kerala, ruled by the Communist Party of India (Marxist) (CPIM)-led Left DemocraticFront (LDF) government was allocated the lowest in South India, with Rs 27,382.06 crore.

Meanwhile, Bihar, ruled by Janata Dal (United), another major partner of the NDA, was allocated Rs 1,43,069.43 crore and Rs 2,55,172.21 crore.

The statewide devolutions of Union taxes and duties are based on the recommendations made by the Fifteenth Finance Commission. This was decided by taking various factors into account like population, area, forest and ecology, income distance criteria, demographic performance, and tax efforts of states.

Telangana’s share in Union Budget 17th largest

Telangana was allocated Rs 29,899.77 crore in the Union Budget, presented by Union finance minister Nirmala Sitaraman on February 1. The Telugu state meanwhile, had topped every Indian state in Own Tax Revenue generation, according to the Economic Survey report, released a day before the budget.

Telangana’s Own Tax Revenue is estimated to be Rs 1,38,181 crore in 2024-25, according to the Telangana government. Reserve Bank of India says that it contributed 5.9 percent of the total Own Tax Revenue produced by Indian states in the fiscal year 2024-25. Meanwhile, as per the recommendations made by the 15th Finance Commission, Telangana is allocated a 2.102 percent dividend in the Union government’s devolution of taxes.

Telangana registered 88 percent in Own Tax Revenue (OTR), in April-November 2024, which was a higher percentage than any other state, with 86 percent each.

Own Tax Revenue is created by a state through State Goods and Services Tax (SGST), state excise, taxes on vehicles, stamp duty and registration fees, land revenue, taxes on goods and passengers, etc.

As Telangana has been scoring high with its Own Tax Revenue (OTR), the state also has a positive fiscal deficit.

Telangana’s economy: Key figures

According to the recently published Telangana Caste Survey, the state has 3.54 crore population.

Though Telangana got the 17th largest share in the Union Budget, Telangana contributed 4.56 percent of the nation’s GDP, with a Gross State Domestic Product (GSDP) worth Rs 7.93 lakh crore in 2023-24.

Telangana has also shown the second-highest Growth of Net State Domestic Product in Fiscal year 2023-24, with 14.64 percent growth, second only to the smaller Indian state of Arunachal Pradesh. Meanwhile, Telangana’s growth in NSDP is lower by almost two percent than the same metric during 2022-23 (16.74 percent).