Tax Devolution Gap: 7 States Face Revenue Shortfall Explained

Tax Contribution vs Devolution
Period: 2020-21 to 2024-25

States contributing MORE than they receive (7 States)
• Maharashtra: Contributes 36.1%; receives 6.65% (biggest negative gap).
• Karnataka: Gap –8.8 pps.
• Haryana: Gap –4.3 pps.
• Gujarat: Gap –3.5 pps.
• Tamil Nadu: Gap –2.95 pps.
• Telangana: Gap –1.4 pps.
• Goa: Gap –0.04 pps.

States receiving MORE than they contribute
• Uttar Pradesh: Contributes 4.6%; receives 15.8% (highest positive gap).
• Bihar: Gap +8 pps.
• Madhya Pradesh: Gap +5.5 pps.
• Rajasthan: Gap +3.55 pps.

Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted

Tax Devolution Gap: 7 States Face Revenue Shortfall Explained

Got a question? We're here to help!

Our dedicated Student Support team is ready to assist you and guide you every step of the way.
Reach out to us, and let’s tackle your queries together!

Copyright © 2026 USARAMBHA EDUCATION (UnderStand UPSC). All Rights Reserved.

UPSC Mains 2026 Crossover - Download Free PDF
0
Would love your thoughts, please comment.x
()
x