New Delhi, March 27 – The battle for Tamil Nadu played out in the Rajya Sabha on Friday as the DMK and AIADMK accused each other of mismanaging the state's finances and hindering the implementation of central schemes.
While DMK leader P Wilson blamed the ruling NDA for not doing enough for the state and depriving its people of their share in central funds, AIADMK leader M Thambidurai accused the ruling DMK of indulging in corruption and not allowing the implementation of central schemes in Tamil Nadu.
The two leaders were speaking on the Finance Bill in the Upper House, which returned it to the Lok Sabha after a brief discussion.
In her reply to the Bill, Finance Minister Nirmala Sitharaman also attacked the DMK for depriving the people of the state of the benefits of many central schemes.
She also criticised the DMK for the plight of women in the Southern state.
Wilson said that the Union government collected over Rs 5.99 lakh crore in tax returns from Tamil Nadu during the three financial years from 2022-23 to 2024-25. For every one rupee collected, the state received only about 23 paise from the central divisible pool of taxes.
"This is nothing short of fiscal injustice. A comparison with other states reveals the magnitude of this imbalance," Wilson alleged.
Drawing a comparison with other states, he said that while Uttar Pradesh contributed Rs 3.62 crore in taxes to the Union government over the same three-year period, the funds devolved to the state from the central taxes amount to over Rs 6.03 lakh crore. This means that for every one rupee of tax revenue collected by the Centre from UP, it receives Rs 1.66 back from the share of central taxes.
He said the disparity becomes even more striking in the case of Bihar. The taxes collected from Bihar during the three years total to over Rs 49,200 crore, while the funds devolved to the state from the Central taxes amount to over Rs 3.38 lakh crore. In effect, for every one rupee of tax collected by the Union government from Bihar, the state receives Rs 6.9 back from the share of the central taxes.
"Tamil Nadu, one of the country's strongest economic contributors, receives only a fraction of what it contributes. Meanwhile, several states that contribute far less receive significantly larger transfers. The people of Tamil Nadu deserve a fair and equitable share of the resources they helped generate."
"If the principle of cooperative federalism is to have any real meaning, the Union government must address this glaring disparity and ensure that the distribution of the national resources does not systematically disadvantage high-performing states like Tamil Nadu or penalise them for the same," Wilson alleged.
He said if the Union government truly believes in cooperative federalism, it must answer a simple question. Why is Tamil Nadu paying one rupee and getting 23 paise from the Central divisible pool of taxes?
Accusing the Centre of withholding the state's rightful funds and then turning around to preach fiscal morality, Wilson said all this is while the Centre's own debt continues to balloon and its interest burden tightens like a noose.
"Several crucial central scheme funds owed to TN remain pending. According to a detailed representation made by the TN government, the Union government owes more than Rs 10,000 crore across various schemes," the DMK MP said.
"You may control the narrative today, you may withhold our lawful funds amounting to more than Rs 10,000 crore, twist data, and preach fiscal sermons from Delhi. But there is one force you cannot control, the people. The people of Tamil Nadu are watching," Wilson said.
In an apparent reference to Finance Minister Nirmala Sitharaman, he said, "Madam, you have given nothing to Tamil Nadu in the last five years and made them struggle. Mark my words. The people of Tamil Nadu will reciprocate in the same way you did on 23 April, and you will know the results on May 4".
Referring to Wilson's remarks, M Thambidurai of AIADMK called out his allegation of the Centre's bias against Tamil Nadu.
The Union government is making serious developmental efforts across the country, he said, adding that the Prime Minister, during a recent visit to Tamil Nadu, said whatever the state government is raising is not correct.
"I would urge the state government to work in the true spirit of cooperative federalism and ensure that the Central funds and schemes are implemented efficiently without any bias," Thambidurai said.
Quoting Prime Minister Narendra Modi, he said the Centre was giving a lot of money to Tamil Nadu to implement the central schemes. But the present DMK government failed to implement the central government schemes.
Thambidurai said it is alleged that the whole fund goes to one dynastic family, and there is a lot of corruption in the state.
He said many central schemes have been given, but they (the DMK government in TN) are not properly implementing them.
Thambidurai said the people of Tamil Nadu have decided to throw the DMK government out, so how can you continue, expressing confidence that the AIADMK-led NDA alliance is going to win in the state elections.