In recent years, the DMK-led government in Tamil Nadu has repeatedly accused the Central Government, particularly under Prime Minister Narendra Modi’s leadership, of financial discrimination. These claims, often echoed in political speeches and media narratives, suggest that Tamil Nadu is being short-changed—receiving only a fraction of what it contributes to the nation’s tax pool, and being denied its fair share of developmental funds. However, a closer look at data spanning the UPA and NDA regimes reveals a very different picture. This report, backed by research and analysis from JVC Sreeram, aims to dismantle the misinformation propagated by the DMK using verifiable figures, inflation-adjusted comparisons, and fiscal realities. The objective is simple: to let facts, not political rhetoric, guide public understanding. Let’s delve deeper into the lies and facts.
DMK’s Lie No 1
Central Government gives only 30 paisa for every 1 rupee collected as taxes from the state of Tamil Nadu and injustice is committed is another infamous fake narrative by DMK.
Fact
Shri Narendra Modi’s NDA Government provided Rupees 5,08,337 crores to Tamil Nadu as Devolution and Grant-In-Aid apart from providing Rupees 1,43,000 crores for Infrastructure Development from 2014 to 2024.
Under Shri Manmohan Singh’s UPA’s Government from 2004 to 2014 the state of Tamil Nadu received Rupees 1,52,091 crores. It is pertinent to note that DMK was part of UPA Ministry and a Minister of State of Finance was a DMK MP and it is also important to note that during the 10 years of UPA regime Shri. P. Chidambaram who was MP from Sivaganga was the Union Finance Minister for a period of 6 years.
DMK’s Lie No 2
Modi Led NDA Government in the Centre, collects taxes from TN and distributes it to other Bimaru states.
Fact
The Direct Tax collections from the state of Tamil Nadu during the UPA regime of 10 years from 2004 to 2014 was approximately Rupees 2,10,000 crores of which 72.42% was given back to the state by the Central Government which amounts to Rupees 1,52,091 crores.
Approximate Direct Tax collections from the state of Tamil Nadu during the NDA regime from 2014 to 2024 was Rupees 7,63,000 crores and the Central Government led by Shri Narendra Modi ensured that the state received 85.36% in the form of Devolution, Grants-In-Aid and Infrastructure funds totaling to Rupees 6,51,337 crores.
Hence this fake narrative of DMK is also busted through facts, data and figures.
DMK’s Lie No 3
Someone should tell BJP that there is a concept of Inflation and hence there is a jump in the funds provided by the Central Government.
Fact
The cumulative inflation during the period of 2014 and 2024 in India was 74.23% but the increase in Devolution and Grant-In-Aid provided during the same time saw a jump of 232.3% (this is 3.35 times more than what the state received under UPA regime) and if we include the Funds for Infrastructure Development then the jump in fund allocation to Tamil Nadu shoots up to 328.2% (this is 4.3 times more than what the state received under UPA regime.
Taking the argument further the cumulative inflation, which prevailed during the 10 years of UPA regime was a whopping 115%. Hence the increase of fund allocation has nothing to do with Inflation and there is proper justice in allocating resources to the state of Tamil Nadu.
The very fact that Tax collections have grown up by over 3.6 times in the period of 2014 to 2024 compared to 2004 to 2014 and also the fact that Inflation has been cumulative inflation of the period of 10 years of Modi Government has been controlled and brought down from an alarming 115% to that of a reasonable and acceptable 74.23% is the testimony to the fact that economy has been handled in a far more prudent manner in spite of a once in a century Global Pandemic attacking the world. Considering all these things the DMK Government should be happy about the economic progress that India is making and the center is supporting the state of Tamil Nadu in the best possible manner and should not be cribbing and complaining all the time.
Annexure 1
Please note that in the absence of granular, state-specific annual reports from the CBDT these figures remain estimates grounded in broader trends and known data points. These estimates are calculated based on growth rates, consistent 6% to 7% of national direct tax collections (this was later confirmed in 2022-2023 where Tamil Nadu contributed 6.52% of total national tax collections.
Annexure 2
Please note:
- FY 2017-2018 saw a surge due to demonetization surge.
- FY 2018-2019 saw Karnataka overtake Tamil Nadu
- FY 2020-2021 saw stagnation due to COVID 19 pandemic
- FY 2021-2022 saw a bounce back due to swift recovery from pandemic
- FY 2023-2024 is based on national surge and trends in Tamil Nadu
Now let’s compare the allocation of funds by UPA Government from 2004-2014 and NDA Government from 2014-2024 along with other financial data.
The narrative pushed by the DMK alleging financial injustice by the Central Government fails to hold up under scrutiny. From 2014 to 2024, Tamil Nadu has received a significantly higher share of funds compared to the UPA decade, with an increase of over 328% when infrastructure allocations are included. Not only has the Modi-led NDA government returned a higher percentage of Tamil Nadu’s tax contributions, but it has also done so while maintaining lower inflation and steering the country through major global disruptions like the COVID-19 pandemic. Far from being short-changed, Tamil Nadu has been a major beneficiary of central support. It is time to move beyond politically motivated claims and acknowledge the substantial fiscal backing provided by the Centre—support that reflects fairness, growth, and national responsibility.
Sreeram JVC is a political strategist, author and a public speaker.
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