Chennai (Tamil Nadu) [India], April 7: The Dravida Munnetra Kazhagam (DMK) has reignited its criticism of the Centre over what it calls an “unjust” devolution of Union tax revenue to Tamil Nadu, demanding a more equitable and uniform distribution across all Indian states.
DMK leader TKS Elangovan on Monday alleged that Tamil Nadu receives only a fraction of the taxes it contributes to the Centre. He compared the situation with BJP-ruled states like Uttar Pradesh, claiming that for every Re 1 collected from Tamil Nadu, the state gets just 27 paise, while Uttar Pradesh receives Rs 2 in return for every rupee it contributes.
“When we pay Re 1 as tax, we get only 27 paise. But when UP pays Re 1, they get Rs 2. Why reduce funds to Tamil Nadu? Either increase our share or ensure uniformity across states. That’s not happening,” Elangovan said.
He also accused the Centre of discrimination in fiscal transfers, alleging that states ruled by the BJP are favoured under the current financial structure. Elangovan took a swipe at Prime Minister Narendra Modi’s recent speech in Rameswaram, where the PM touted infrastructure investments made in Tamil Nadu since 2014.
“During the Congress regime, states had more control over commercial tax. But after GST, the Centre collects taxes and shares a smaller portion with states like Tamil Nadu, while BJP-ruled states get more,” he added.
PM Modi’s Rameswaram Visit & Mega Infrastructure Push
On Sunday, PM Modi inaugurated and laid foundation stones for rail and road projects worth over Rs 8,300 crore in Rameswaram, including the launch of India’s first vertical-lift sea bridge, the new Pamban Rail Bridge.
The Prime Minister underlined the Centre’s commitment to infrastructure development in Tamil Nadu, pointing out that the state’s railway budget had risen over sevenfold in the last decade—from Rs 900 crore annually before 2014 to over Rs 6,000 crore this year.
PM Modi said that 77 railway stations, including Rameswaram, are being modernised, and more than 4,000 kilometres of roads have been built across Tamil Nadu since 2014. He also highlighted major connectivity projects like the Chennai Port elevated corridor, noting that road projects worth approximately Rs 8,000 crore are underway to improve links between Tamil Nadu and Andhra Pradesh.
The Prime Minister said public transport projects like the Chennai Metro are enhancing ease of life and generating employment. On the social front, he noted that over 12 lakh pucca houses have been constructed in Tamil Nadu under PM Awas Yojana, as part of the 4 crore homes built nationwide in the last 10 years.
Despite these investments, DMK leaders remain unconvinced, reiterating their demand for a fair share of central tax revenues to ensure balanced development across all Indian states.