India's Fiscal Federalism
Visualized

An interactive analysis revealing how ₹111 lakh crore in taxes flows between 7 contributor states and 21 beneficiary states from FY 2020-21 to 2024-25

0
Lakh Crore ₹
Total Tax Collected
0
Lakh Crore ₹
Devolved to States
0
Percent
Devolution Rate
Scroll to Eplore
Understanding the Data

The Big Picture

India's fiscal federalism redistributes ₹75 lakh crore across 28 states. Here's how the system works and who gains or contributes.

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Key Finding

7 states contribute more than they receive, while 21 states are net beneficiaries of this constitutional redistribution mechanism.

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21
Net Contributors Net Beneficiaries
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Explore by State

Visual Storytelling

Interactive Infographics

Explore India's fiscal landscape through beautifully designed visualizations

India's Top 5 Net Beneficiary States

Top 5 Net Beneficiary States

States that receive more tax devolution than they contribute. Uttar Pradesh leads with a -11.22pp gap, receiving 3.4x its contribution.

  • 🔴 Uttar Pradesh: -11.22pp (Receives 3.4x)
  • 🔴 Bihar: -7.98pp (Receives 12.7x)
  • 🔴 Madhya Pradesh: -5.46pp (Receives 3.8x)
  • 🔴 Rajasthan: -3.55pp (Receives 2.4x)
  • 🔴 Assam: -3.23pp (Receives 5.8x)
India's Net Contributor States

The 7 Net Contributor States

States contributing more to the national tax pool than they receive. Maharashtra dominates with +29.42pp gap, receiving only 18% of its contribution.

  • 🟢 Maharashtra: +29.42pp (Receives 0.18x)
  • 🟢 Karnataka: +8.76pp (Receives 0.31x)
  • 🟢 Haryana: +4.28pp (Receives 0.20x)
  • 🟢 Gujarat: +3.49pp (Receives 0.49x)
  • 🟢 Tamil Nadu: +2.95pp (Receives 0.61x)
  • 🟢 Telangana: +1.42pp (Receives 0.63x)
  • 🟢 Goa: +0.04pp (Receives 0.87x)
15th Finance Commission Devolution Formula

15th Finance Commission Formula

The constitutional criteria that determines how ₹75 lakh crore is distributed across states. Each criterion has a specific weightage.

  • 📊 Income Distance: 45% (Gap from richest state)
  • 👥 Population: 15% (2011 Census data)
  • 🗺️ Area: 15% (Geographic size)
  • 👶 Demographic Performance: 12.5% (Fertility decline)
  • 🌳 Forest & Ecology: 10% (Conservation efforts)
  • 💰 Tax Effort: 2.5% (Revenue efficiency)
The Power Players

Net Contributor States

7 states that contribute more to India's tax pool than they receive back

1
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Maharashtra

+29.42pp
Contributes 36.07%
Receives 6.65%

India's economic powerhouse contributes ₹1 of every ₹3 in taxes but receives back only ₹1 of every ₹15

2
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Karnataka

+8.76pp
Contributes 12.66%
Receives 3.90%
3
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Haryana

+4.28pp
Contributes 5.38%
Receives 1.10%

Other Net Contributors

4 Gujarat +3.49pp
5 Tamil Nadu +2.95pp
6 Telangana +1.42pp
7 Goa +0.04pp
The Receiving End

Net Beneficiary States

21 states that receive more from tax devolution than they contribute

1
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Uttar Pradesh

-11.22pp
Contributes 4.60%
Receives 15.82%
3.4x Multiplier

India's most populous state receives 3.4 times what it contributes to support development of 240+ million people

2
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Bihar

-7.98pp
Contributes 0.68%
Receives 8.66%
12.7x Highest Multiplier
3
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Madhya Pradesh

-5.46pp
Contributes 1.94%
Receives 7.40%
3.8x Multiplier

All 21 Beneficiary States

Deep Dive

Interactive Data Exploration

Explore the complete dataset across all 28 states with interactive charts

Behind the Analysis

Methodology & Context

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Data Source

Official government data from Ministry of Finance presented in Rajya Sabha (Unstarred Question No. 236, December 2, 2025)

  • Direct tax collection by state
  • GST collection data
  • Tax devolution figures
  • Finance Commission grants
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Calculations

Multiple metrics derived from raw data to provide comprehensive analysis

  • Net Difference (pp): Tax % - Devolution %
  • Multiplier: Devolution % ÷ Tax %
  • Classification: Contributor or Beneficiary
  • Devolution Ratio: Receipt ÷ Contribution
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15th FC Formula

Constitutional criteria determining devolution distribution (2020-2025)

  • Income Distance: 45% weightage
  • Population: 15% weightage
  • Area: 15% weightage
  • Demographics: 12.5% weightage
  • Forest & Ecology: 10% weightage
  • Tax Effort: 2.5% weightage
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Important Context

This is redistributive federalism by design, not a flaw. Article 280 of the Indian Constitution mandates the Finance Commission to balance vertical and horizontal equity across states.

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Why redistribution exists: To reduce regional disparities and ensure equitable development across India

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Benefits to all: Creates integrated national market, prevents regional conflicts, enables mutual growth

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The debate: Not whether redistribution should exist, but what the optimal balance between equity and efficiency should be

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16th Finance Commission (2026-2031): Will review and potentially revise the formula based on updated census data and economic conditions

Open Data

Download & Explore

All data, code, and visualizations are freely available

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Complete Dataset

Clean CSV with all 28 states and calculated metrics

📄 CSV Format 📦 3.2 KB
Download CSV
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Python Analysis

Complete analysis script with visualizations

📄 Python Script 📦 19 KB
Download Code
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Visualizations

High-resolution charts (300 DPI, publication quality)

📄 PNG Images 📦 1.6 MB
Download Charts
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Complete Package

Everything: data, code, charts, documentation

📄 ZIP Archive 📦 3.8 MB
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View on GitHub

Complete source code, documentation, and version history

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