DMK Criticizes Unequal Tax Revenue Distribution to Tamil Nadu

The DMK has raised concerns over perceived inequities in tax revenue distribution from the Union government to Tamil Nadu. TKS Elangovan criticized the disparity of funds, noting favoritism towards BJP-ruled states. The accusations come amid PM Modi's recent announcement of infrastructure projects for Tamil Nadu.

The Dravida Munnetra Kazhagam (DMK) has once again called into question the perceived discriminatory devolution of Union tax revenue to Tamil Nadu. Party leader TKS Elangovan criticized the significant disparity, highlighting that while Tamil Nadu receives only 27 paise for every rupee it contributes, Uttar Pradesh receives Rs 2 per rupee collected. Elangovan stressed the need for uniformity in the allocation of tax revenue among states.

Elangovan further accused the central government of favoring states governed by the Bharatiya Janata Party (BJP). He refuted Prime Minister Narendra Modi's recent claims of increased financial support to Tamil Nadu, noting that post-GST, state shares have reduced compared to BJP-ruled regions. Elangovan pointed out that the central government currently collects taxes that were previously under state jurisdiction, affecting Tamil Nadu's revenue share.

Recently, Prime Minister Modi inaugurated several infrastructure projects in Rameswaram, Tamil Nadu, including the new Pamban Rail Bridge, India's first vertical lift sea bridge. The Prime Minister emphasized that infrastructure development in Tamil Nadu is a priority, citing the sevenfold increase in the state's railway budget over the past decade and several significant road projects underway.

(With inputs from agencies.)