The ruling DMK government has once again attempted to deflect criticism by blaming the central government whenever its policies or actions come under scrutiny. This time, in response to opposition parties like the BJP and AIADMK highlighting Tamil Nadu’s growing debt crisis under the DMK regime, the state government has shifted blame to the fiscal sharing mechanism between the central and state governments. The DMK alleges that Tamil Nadu is losing revenue under the BJP-led central government. Tamil Nadu’s Finance Minister Thangam Thennarasu claimed that the devolution for Tamil Nadu reduced from more than 7% before to 4.079% implying that the state got less money under the Modi government —a claim that does not hold up to scrutiny.
Fact Check: Who Decreased Tamil Nadu’s Share?
The DMK argues that Tamil Nadu’s share in Finance Commission devolution has declined from 7.931% during the 9th Finance Commission to 4.079% under the 15th Commission. However, the reality is that Tamil Nadu’s share had already dropped to 4.02% before Prime Minister Modi assumed office in 2014.
This decline occurred due to the 14th Finance Commission, which was constituted under the Congress-led UPA government, where DMK was a coalition partner. Between 1996 and 2014, when DMK shared power in Delhi, Tamil Nadu’s share dropped from 7% to 4.02%. Thus, blaming Prime Minister Modi for this reduction is misleading.
Has The Modi Government Provided More Funds To Tamil Nadu?
Comparison of Central Funds to Tamil Nadu
Under the Modi government (2014-2023), Tamil Nadu has received more central funds compared to the Congress-DMK period (2004-2014):
- During the Congress-DMK regime (2004-2014): Tamil Nadu received only ₹1.58 lakh crore over ten years.
- Under the Modi government (2014-2023): Tamil Nadu received ₹4.75 lakh crore over just eight years—three times more than the previous decade.
Additionally, Tamil Nadu paid ₹6.24 lakh crore in direct taxes and received ₹6.97 lakh crore in return—a net gain of over 90% of the amount paid.
Did Congress And DMK Betray Tamil Nadu?
Despite Tamil Nadu’s declining share in the Finance Commission’s allocation during DMK’s tenure in Delhi (1996-2014), the party never raised concerns or took corrective action when they had the opportunity. The question arises: If DMK truly cared about Tamil Nadu’s financial interests, why did they not protest or take steps to safeguard the state’s share when they were in power?
What Has The Modi-Led BJP Government Done for Tamil Nadu?
The BJP government has implemented several initiatives that have significantly benefited Tamil Nadu:
- Financial Aid: Tamil Nadu received ₹4.75 lakh crore in central funds over eight years, a substantial increase from previous administrations.
- Population Control Incentives: Modi’s policies reward states that manage population growth, benefiting Tamil Nadu.
- Development Initiatives:
- Security programs
- Employment schemes
- Textile parks
- Free food grains for nearly 3 crore people
- Free cooking gas for 40 lakh women
Is DMK’s “Loss” Real?
The DMK claims that Tamil Nadu has lost ₹2.63 lakh crore, basing this argument on an outdated 7% share figure. However, the fiscal allocation framework changed during the Congress-DMK era, and Tamil Nadu has actually received more funds under the Modi government.
In reality, Tamil Nadu’s share increased under the 15th Finance Commission, rising from 4.023% to 4.079%, whereas other southern states saw a decline.
Key Factors In 15th Finance Commission’s Allocation Under BJP:
| Criteria | Weightage |
|---|---|
| Tax & Fiscal Efforts | 2.5% |
| Demographic Performance | 12.5% |
| Result: Tamil Nadu’s share increased to 4.079%. |
Conclusion
The DMK’s claims about fiscal injustice under the Modi government are false and misleading. The reduction in Tamil Nadu’s share happened under the Congress-DMK era, and the DMK did nothing to challenge it. Under Modi’s leadership, Tamil Nadu has received more funds, better opportunities, and favorable policies.
The DMK’s attempts to divert attention from its governance failures by blaming the BJP do not stand up to facts.
பாரதப் பிரதமர் திரு.மோடி அவர்கள் தமிழ்நாட்டுக்கு துணை! மதிப்பிற்குரிய அமைச்சர் திரு. தங்கம் தென்னரசு அவர்கள் சொல்லாமல் விட்ட உண்மைகள்! pic.twitter.com/IoCtzXbQLU
— S Sundar Raman (@ssundarraman) March 22, 2025
S Sundar Raman is a Chartered Accountant and the Vice President of BJP Tamil Nadu’s Thinker’s Cell
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