Tamil Nadu Finance Minister Thangam Thennarasu, on Wednesday, accused the Union government of showing “step-motherly attitude” towards the State over devolution of funds. Compared to BJP-ruled Uttar Pradesh, Tamil Nadu contributed more but received quite less in devolution, the Minister told the Assembly.
“We have been giving our contribution when it comes to direct tax. But, when we see whether we are getting the due devolution of funds, Tamil Nadu did not get it,” Mr. Thennarasu said during his reply to the debate on demands for further grants (first) for 2023-24. For instance, the State received only 29 paise in devolution for every rupee it contributed as tax, while Uttar Pradesh received ₹2.73.
The contributions from Tamil Nadu as direct tax between 2014-15 and 2021-22 was ₹5.16 lakh crore but the State received only ₹2.08 lakh crore through devolution. “But Uttar Pradesh contributed ₹2.24 lakh crore but it received ₹9.04 lakh crore through devolution,” Mr. Thennarasu pointed out.
Tamil Nadu was also losing out because of the recommendations of the Finance Commission over the past 15 years. While the 12th Finance Commission recommended 5.305% as Tamil Nadu’s share in total divisible pool of Central taxes, the 15th Finance Commission recommended only 4.079%, he pointed out.
Census was favouring the northern States, the Minister said and pointed out that Tamil Nadu had efficiently implemented family planning measures that were launched in 1972 so as to be progressive. “But, the truth is that we are losing out for having accepted the family planning measures in 1972.”
Even in getting disaster relief fund, Tamil Nadu received less when compared to Uttar Pradesh and Bihar. “If you think about how southern States are placed compared to northern States and who is responsible for this, the finger only points to the Union government,” he said.
The revenue loss for Tamil Nadu due to the GST regime was about ₹20,000 crore, the Minister said. In the Pradhan Mantri Awas Yojana, the Union government’s housing scheme named after the Prime Minister, the Centre’s contribution was only ₹1.5 lakh for the construction of one house but the State government gave ₹7 lakh for every unit.
Though the Union Finance Minister claimed funds were allocated for Chennai Metrorail project during 2021-22, Mr. Thennarasu said no allocation had been made by the Union government so far and the State government was bearing all the costs. In other railway projects too, Tamil Nadu was not being allocated sufficient funds.
Later in the day, the Speaker adjourned the House Sine Die.
