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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.

Screenshot 2025 12 09 at 08.43.22
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Tax Devolution Gap: 7 States Face Revenue Shortfall Explained

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