The DMK and its alliance parties have been relentlessly campaigning in Tamil Nadu that the BJP-led central government is siphoning off tax money from Tamils and giving it to North Indian states, particularly claiming that Bihar is being funded by Tamil Nadu’s taxes.
They use this narrative to:
- Hide their political defeat,
- Divert attention from the law and order problems under DMK rule,
- Distract from the failures and ineptitude of their own administration.
The only weapon they wield is the claim that the BJP is betraying Tamil Nadu.
For example, when asked why the state has borrowed about ₹4.5 lakh crore in the last four years, the DMK says the Centre isn’t releasing Tamil Nadu’s rightful share and blames the BJP. Tamil Nadu Finance Minister Thangam Thennarasu stated that the Centre had reduced Tamil Nadu’s share in central taxes, dropping it from 7.931% to 4.079%.
As always, DMK mixes in a little truth with its lies. Yes, at one time Tamil Nadu’s tax devolution share was 7.9%. Yes, it is now 4%. However, what the finance minister did NOT explain is when and how this reduction occurred as distorting or hiding the truth is also a lie.
The Illusion Created By The DMK
The DMK attempts to create an illusion that it was only after the BJP came to power that Tamil Nadu’s share was reduced. But when was Tamil Nadu’s share really 7%? During the 9th Finance Commission, between 1990 and 1995.
Since then, the proportion has steadily decreased:
- 12th Finance Commission (2005–2010): 5.3%
- 13th Finance Commission (2010–2015): 4.97%
- 14th Finance Commission (2015–2020): 4.02%
- 15th Finance Commission (2020–2025): 4.08%
That is, even before the BJP came to power, the rate had dropped from 7% to around 5%. It sits at about 4% during BJP rule.
So, Who Is Responsible For The Reduction?
It is the Congress and DMK themselves, especially the DMK, which was in power at the Centre for nearly 25 years, including 15 consecutive years from 1999 to 2014. Yet, not once in that period did they raise their voice or protest about the reduction in Tamil Nadu’s share.
In fact, during the Congress regime, the overall percentage of tax devolution to states was lower. The Modi government raised it from 30.5% to 41%. In a recent finance commission meeting, Chief Minister Stalin himself cited the increase and requested that it go higher to 50%. DMK, once silent when the share was 30%, now attacks the BJP after a historic increase to 41%.
The claim that Tamil Nadu’s taxes are being diverted to Bihar or Uttar Pradesh is false—even under Congress rule, these states received their constitutionally mandated shares. Not just Tamil Nadu, but states like Bihar, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka (many BJP-ruled) have all seen their shares decrease over successive commissions—yet DMK only mentions Bihar and UP for their anti-Hindi propaganda.
During the DMK and Congress coalition, Bihar’s share was 11.03% and Uttar Pradesh’s was around 19%—and no one complained then. The overall rate for all states was lower under Congress.
Let’s Look At Some Facts
The Modi government raised state devolution from 30.5% to 41%.
This year, Tamil Nadu’s budget notes a record ₹80,000 crore is being transferred from the Centre, more than even what was projected.
These figures are found in the Tamil Nadu budget documents themselves.
The DMK’s narrative that the BJP government is cheating Tamil Nadu is a baseless political story:
The reduction from 7% began long before the BJP came to power.
The BJP government has raised, not reduced, the overall allocation to states.
The share for all southern and some northern states, including BJP-ruled states, has decreased.
The often-quoted “1 rupee given, only 29 paise returned” is a misleading statistic. When Finance Minister Nirmala Sitharaman challenged the DMK to explain how that number was calculated, they had no answer. Karnataka, also ruled by the BJP, claims it only gets 15 paise – that’s the narrative politicians resort to.
If the DMK argues that Tamil Nadu is being cheated, they should release data on what Congress provided when DMK was an ally. Show, with evidence, the percentage under Congress and BJP. Show, with proof, that the BJP is giving Bihar or UP more than Congress did.
Stop deceiving the public with manipulated statistics and false narratives. Don’t peddle lies for divisive politics.
Conclusion
The history and data reveal that the reduction in Tamil Nadu’s tax share began decades ago and continued under Congress-DMK regimes. The Modi government increased overall state allocations, and Tamil Nadu itself is receiving record sums. The DMK’s relentless campaign blaming BJP and the North is a calculated political strategy that does not match the facts.
Ideaman Mahadevan is a writer and political commentator.
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