The Centre on Wednesday released more than Rs 342 crore for rural local bodies in Tamil Nadu and Assam, as part of the 15th Finance Commission’s (XV FC) Untied Grants for FY26.

The government disbursed the first installment of untied grants amounting to Rs 127.586 crore for Tamil Nadu in the financial year 2025-26 (covering 2,901 eligible Gram Panchayats, 74 eligible Block Panchayats, and 9 eligible District Panchayats). Moreover, Rs 214.542 crores for Assam (covering all 2,192 eligible Gram Panchayats, 156 eligible Block Panchayats, and all 27 eligible Zilla Parishads) were also released, according to the Ministry of Panchayati Raj.

The government, through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends release of XV-FC grants to states for rural local bodies (RLBs)/Panchayati Raj Institutions (PRIs), which are then released by Ministry of Finance. The allocated grants are recommended and released in two installments in a financial year. Centre releases over Rs 284 crore to strengthen rural local bodies in Mizoram, Odisha, Tripura Last month, the government released more than Rs 284 crore under the 15th Finance Commission Untied Grants for rural local bodies in three states during the financial year 2025–26.

Mizoram received Rs 14.2761 crore for 827 eligible village councils as part of the 2023–24 grants while Odisha has been allocated Rs 240.8149 crore for 6,085 eligible Gram Panchayats and 63 eligible Block Panchayats. Meanwhile, Tripura received Rs. 29.75 crore for 606 eligible Gram Panchayats, 35 eligible Block Panchayats, 8 eligible Zilla Parishads along with all 587 Village Committees and 40 eligible Block Advisory Committees of the state.

The Untied Grants will be utilised for location-specific felt needs, except for salaries and other establishment costs. The Tied Grants can be used for the basic services of sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and supply of drinking water, rainwater harvesting and water recycling.

-IANS

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The post Centre Releases ₹342 Crore To Tamil Nadu And Assam Under 15th Finance Commission Untied Grants appeared first on The Commune.

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:

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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The post DMK’s Big Lie Busted: Tamil Nadu Got More Funds Under Modi Govt While DMK Kept All Its Holes Shut When UPA Reduced Centre’s Devolution appeared first on The Commune.

The AIADMK appears to be echoing the stance of their rival opposition party DMK, mirroring the sentiments expressed by Udhayanidhi Stalin, the Minister for Youth Welfare & Sports Development and scion of the DMK. Recently, posts from the AIADMK’s IT wing on their official X account have put forth the same narrative stating “29 Paisa- Delhi ji” which was peddled by Udhayanidhi Stalin during his election campaign in Arcot on 27 March 2024.

During the Arcot rally, Prime Minister Narendra Modi was criticized, and the Union government was accused of neglecting Tamil Nadu. Udhayanidhi Stalin referred to the PM as ‘Mr29 paisa Modi‘, alleging that while the Union government collects ₹1 per individual as tax, it only allocates a mere 29 paise for each citizen’s welfare, thus disregarding the public’s needs.

தமிழ்நாட்டிற்குரிய நிதியை அளிக்காமல் வஞ்சிக்கும் பிரதமர் மோடியை இனி Mr #29PaisaModi என்றே அழைப்போம்! pic.twitter.com/Lh76kNHG96

— DMK IT WING (@DMKITwing) March 27, 2024

Tamil Nadu BJP president K Annamalai strongly rebutted a narrative presented by DMK on 4 April 2024, asserting that the Union government led by the BJP has allocated the highest amount of funds to Tamil Nadu in the past decade. He urged Udhayanidhi to cease referring to Prime Minister Modi as ‘29 paise Modi’, warning that if such remarks persist, the BJP will retaliate by labeling him ‘Ganja Udhayanidhi‘ as the widespread availability of illicit substances like ganja in villages since the DMK assumed power.

This suggests a clandestine liaison between the DMK and its partner party AIADMK parroting the sentiments despite projecting themselves as fierce adversaries in public arenas yet maintaining a covert relationship.

29 பைசா- டெல்லி ஜி . . .

— AIADMK IT WING – SayYesToWomenSafety&AIADMK (@AIADMKITWINGOFL) April 13, 2024

What Is The Truth Behind The Allegation?

The Finance Commission of the country plays a crucial role in shaping the financial dynamics between the central government and the states. By delving into the intricate workings of financial institutions in India, it facilitates a comprehensive understanding of their operations.

Constitutional provisions regarding the imposition and collection of taxes are outlined in Articles 268 to 281 of the Indian Constitution. These provisions serve as a blueprint for the central government, offering directives on the equitable distribution of financial resources among the states. They establish a framework for harmonizing tax imposition and collection procedures between the central and state authorities, thereby fostering a coherent system of financial relations. The Fifteenth Finance Commission has formulated a tax transfer formula that considers various factors. These factors include population (15%), geographical area (15%), income disparity among states (45%), demographic transition (12.5%), preservation of forests and ecology (10%), and the effort made by states in tax collection (2.5%).

During the budget session of 2024, it was reported that Tamil Nadu’s portion of Central taxes for the fiscal year 2023-24, as per the updated Union Budget figures presented by Finance Minister Nirmala Sitharaman on 1st February 2024, would amount to ₹44,760.83 crore. This represents a 7.4% increase from the initial projection of ₹41,664.86 crore. Adjustments for previous years led to a revised estimate of ₹45,052.53 crore for Tamil Nadu’s Central tax share in 2023-24. For the interim budget of 2024-25, Tamil Nadu’s share is forecasted to be ₹49,754.95 crore, indicating an 11.2% rise from the revised figures of the preceding fiscal year. Despite a surge in tax collections, the DMK government claims it has been receiving a considerably lower share of devolution from the Centre.

The primary argument put forth by the DMK is that its allocation from the total divisible pool of Central taxes has declined significantly, from 5.305% during the 12th Finance Commission to 4.079% under the 15th Finance Commission. They highlight examples where states ruled by the BJP receive comparatively more significant returns. For instance, for every rupee contributed by Tamil Nadu to the Centre, it receives only 29 paise in return. In contrast, Uttar Pradesh receives ₹2.73, Bihar receives ₹7.06, Maharashtra receives ₹0.08, Karnataka receives ₹0.15, and Gujarat, ruled by the BJP for nearly two decades, receives ₹0.28 less than Tamil Nadu.

The Fifteenth Finance Commission determined the allocation of funds to states from the divisible pool of taxes based on three key factors: their individual needs (such as population, area, forest coverage, and ecological concerns), equity considerations (including differences in per capita income), and performance metrics (such as own tax revenue generation and reduction in fertility rates). These factors were weighted with 40% for needs, 45% for equity, and 15% for performance. As a result, Uttar Pradesh and Bihar received shares of 17.9% and 10% respectively, while Karnataka, Kerala, and Tamil Nadu received 3.65%, 1.93%, and 4.08% respectively. Notably, the inclusion of fertility rate in the formula by the Fifteenth Finance Commission aimed to incentivize states that had successfully lowered their fertility rates, though this aspect tended to benefit more developed states.

M Govinda Rao, a member of the Fourteenth Finance Commission, defended the formula, emphasizing that its aim was not merely to redistribute funds between states but to ensure that all states could provide comparable levels of services. The underlying principle was one of horizontal equity, recognizing that tax revenues collected in a state might not solely originate from that state. He acknowledged the significant rise in per capita income levels in Karnataka, Kerala, and Tamil Nadu, but cautioned against attributing this solely to the efforts of those states.

Similarly, the state isn’t solely reliant on the central government, thanks to the GST, which provides a more substantial foundation for state sustenance with a 50/50 revenue-sharing model. Therefore, the fiscal decentralization carried out by the central government doesn’t exclusively benefit the BJP-led states in the north. It aligns with the constitutional obligation to distribute funds equitably among states. Recently, the BJP administration has responded to the states’ demands by offering incentives to those that effectively reduced their fertility rates. This initiative was not undertaken by the Congress, an ally of the DMK, during their tenure in power.

https://twitter.com/OnlyTruth2024/status/1775857473746063517

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