Today statecharts are a de facto standard in industry for modeling system behavior. Test data generation is one of the key issues in software testing. This paper proposes an reduction approach to test data generation for the state-based software testing. In this paper, first state transition graph is derived from state chart diagram. Then, all the required information are extracted from the state chart diagram. Then, test cases are generated. Lastly, a set of test cases are minimized by calculating the node coverage for each test case. It is also determined that which test cases are covered by other test cases. The advantage of our test generation technique is that it optimizes test coverage by minimizing time and cost. The present test data generation scheme generates test cases which satisfy transition path coverage criteria, path coverage criteria and action coverage criteria. A case study on Railway Ticket Vending Machine (RTVM) has been presented to illustrate our approach.