Wed Mar 19 06:40:43 UTC 2025: ## Telangana Budget Highlights Concerns Over Reduced Central Funding
**Hyderabad, March 19, 2025** – Telangana’s Deputy Chief Minister, Mallu Bhatti Vikramarka, presented the state budget today, expressing strong concerns over the decreasing share of tax devolution from the central government. The budget highlights a decline in Telangana’s share from 2.437% under the 14th Finance Commission to 2.102% under the 15th.
Vikramarka argued that allocating fewer funds to well-performing states is unfair and proposed a more equitable system. The budget suggests a shift from the current “Per Capita Income Distance” criterion for horizontal tax devolution, advocating for a 50% weightage to Gross State Domestic Product (GSDP) to better reflect states’ contributions to national economic growth.
Furthermore, the Telangana government proposed increasing the central tax devolution to 50% from the current 41% for the upcoming 16th Finance Commission. The proposed reforms aim to ensure a more balanced distribution of financial resources and promote equitable development across states. The government is committed to securing its rightful share of funds while ensuring efficient utilization to strengthen its financial stability and growth.
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