Finance Minister E. Rajender told reporters that there was no truth in Shah's statement.
Addressing a public meeting in Nalgonda district on Friday, Shah had stated that the Narendra Modi government gave Rs 90,000 crore during the last two years but these had not reached the people.
Rajender said after the BJP came to power, the Centre had reduced funds for central government-sponsored schemes.
The minister said the Centre had agreed to compensate the state for loss of revenue on account of Value Added Tax (VAT) but nothing was done. He said the state should get Rs 7,000 crore as compensation.
Rajender said the Centre had done nothing for the unemployed during the last two years.
Claiming that Telangana was in the forefront in implementation of welfare schemes, he said Prime Minister Narendra Modi and central ministers have praised the state for this.