Telangana Chief Minister K Chandrasekhar Rao hit back against the "blatant lie" of BJP President Amit Shah on Wednesday, that the Centre was providing additional funds of Rs 20,000 crore to the state every year.
Rao said he challenged Shah to prove that even Rs 200 crore of additional funds were provided to the state.
He said if the BJP leader could prove so, he was ready to resign as Chief Minister.
"Whatever he said in the past three days is nothing but blatant lies. He should apologise to the people of Telangana," Rao told the media in Hyderabad.
The Chief Minister said the Centre earned Rs 50,013 crore in taxes from Telangana during 2016-17 while it gave only Rs 24,561 crore under all central schemes.
He said Shah should know that it is Telangana which gave Rs 25,452 crore to the Centre.
Rao, President of the ruling Telangana Rashtra Samithi (TRS), said Shah was trying to spread "misinformation about the newly created state".
The TRS chief said Shah was trying to damage the state's progress for cheap politics. He said it was unbecoming of the head of a ruling party at the Centre to make such comments.
KCR, as Rao is popularly known, said had Shah made personal comments against him, he would not have reacted but since he tried to spread misinformation about Telengana, he (Rao) decided to respond.
"Whether the BJP is in power or not at the Centre, the state will get whatever it has to get. Like other states, Telangana also got funds from the Centre but it did not get even one rupee more," he said.
He also took exception to Shah's comments that his government had failed to implement welfare schemes.
The Chief Minister said Telangana is one of the only six-seven states that were contributing to national growth and that Telangana is number one in implementing welfare schemes.
KCR also claimed that Shah, during his visit to Nalgonda district of Telangana, ate food cooked elsewhere and by non-Dalits.
Shah, during his three-day visit which concluded on Wednesday, ate food with Dalits during 'Saha Pankti Bhojanam' or community lunch in two villages.
Rao told reporters here that the BJP chief during his visit to Teratpalli village ate food cooked in a nearby village Kammavarigudem under the supervision of a forward caste party functionary.
The Telangana Rashtra Samithi (TRS) chief said in Peddadevupalli village, Shah had food which was brought from a hotel.
Rao also said that while Shah and other BJP leaders were having lunch on the table, Dalit workers of the party were standing behind them.
This was similar to an incident where Karnataka BJP leader Yeddyurappa had food reportedly brought from a hotel during his visit to the house of a Dalit in Chitradurga district of the state last week.
Earlier in the week, Shah had said that Telangana should become the gateway for the party in south India.
"The way Telangana unit of BJP is working for last two years, visiting every village to strengthen the party, I am confident that in 2019 BJP will form the government in Telangana," he had said.