Published Feb 10, 2026 | 11:12 AM ⚊ Updated Feb 10, 2026 | 11:12 AM
Telangana Chief Minister A Revanth Reddy.
Synopsis: Telangana CM Revanth Reddy accused the BJP-led Centre of discriminating against southern states in project approvals and tax devolution. He highlighted Telangana’s poor returns despite high contributions, criticised neglect of key irrigation and infrastructure projects, and warned fiscal imbalance undermines cooperative federalism and penalises better-performing southern economies.
Telangana Chief Minister A Revanth Reddy launched a blistering attack on the BJP-led Union government, alleging “step-motherly” treatment towards southern states, including Telangana, in project approvals and tax devolution.
Speaking to reporters on Monday, 8 February, he claimed the Union government has systematically discriminated against the South despite its outsized contribution to the national tax pool.
He said: “Not a single project proposed by the Telangana government has been sanctioned by the Centre since 2014,” Reddy charged.
He pointed to the absence of national project status for the Palamuru-Rangareddy Lift Irrigation Scheme during a recent visit by BJP president Nitin Nabin.
Reddy also slammed his Maharashtra counterpart Devendra Fadnavis for failing to extend cooperation on the Pranahita-Chevella project during his campaign in Adilabad. This lift irrigation scheme is vital for providing irrigation and drinking water to nearly two lakh acres in the district, Revanth Reddy said.
Reddy said disparities in tax devolution were stark. “For every rupee Telangana gives to the Centre, it receives back only 42 paise,” he said.
“The fate of the other southern states is no different: Karnataka gets 16 paise, Tamil Nadu 26 paise, and Kerala 49 paise.”
In sharp contrast, northern states receive far more — Bihar gets ₹6.06, Madhya Pradesh ₹2.09, and Uttar Pradesh ₹2.90 per rupee contributed to the central pool.
The chief minister specifically targeted Union Ministers Bandi Sanjay and G Kishan Reddy — both from Telangana — accusing them of “mortgaging the state’s self-respect in Delhi.”
He alleged they failed to secure funds for critical projects, including Musi River rejuvenation, Metro Rail Phase-II expansion, special packages for the Sammakka Sarakka Jathara, and approvals for Information Technology Investment Region (ITIR) and semiconductor initiatives. During floods in Hyderabad and Khammam in October 2025, there was no additional central assistance, he claimed.
It has been widely acknowledged that this pattern reflects a deeper fiscal imbalance. Southern states like Telangana, Tamil Nadu, Karnataka, and Kerala are economic engines, driving much of India’s growth through IT, manufacturing, services, and higher tax compliance.
They contribute disproportionately to the central tax pool via direct taxes, corporate taxes, and GST. Yet the devolution formula, weighted heavily towards population, area, and backwardness, channels more funds to populous, less developed northern states.
Critics argued this penalises better-performing southern regions, creating resentment and affecting the spirit of cooperative federalism.
(Edited by Amit Vasudev)
