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TN: DMK demands parity in Union tax devolution, accuses Centre of favouring BJP-ruled States

DMK on Monday again raised the issue of alleged unfairness in the devolution of Union tax revenue to Tamil Nadu. Demanding uniformity in the tax devolution, the party leader, TKS Elangovan, pointed out that when the Centre collects Rs 1 from Tamil Nadu as tax, the state gets 27 paise in return, however, Uttar Pradesh gets Rs 2 for each Rs 1 collected from that State.

ANI Apr 07, 2025 12:33 IST googleads

DMK leader TKS Elangovan (Photo/ANI)

Chennai (Tamil Nadu) [India], April 7 (ANI): DMK on Monday again raised the issue of alleged unfairness in the devolution of Union tax revenue to Tamil Nadu. Demanding uniformity in the tax devolution, the party leader, TKS Elangovan, pointed out that when the Centre collects Rs 1 from Tamil Nadu as tax, the state gets 27 paise in return, however, Uttar Pradesh gets Rs 2 for each Rs 1 collected from that State.
"What we say is we have a specific charge, when we pay Re 1 as tax, we get only 27 paise, and when UP pays Re 1 as tax, they get Rs 2 in return. Why should they reduce the funds given to the state? They should increase it, or there should be uniformity for all states. They are not doing it," Elangovan said.
Elangovan also accused the Centre of favouring BJP-ruled States.
"In his (PM Modi) speech in Rameswaram on Sunday, he said his government has given so much money, but Congress did not give as much before 2014. During the Congress time, the collection of Commercial tax was with the state... After the GST regime, the government of India collects the tax and gives us a share, which is very less as compared to the shares given to BJP-ruled states...," he said.
On Sunday, Prime Minister Narendra Modi laid the foundation stone and dedicated to the nation various rail and road projects worth over Rs 8,300 crore in Rameswaram, Tamil Nadu.
He inaugurated the new Pamban Rail Bridge - India's first vertical lift sea bridge, and flagged off a train and a ship from the road bridge and witnessed the operation of the bridge.
Underlining that infrastructure development in Tamil Nadu is a priority for the Government of India, PM Modi highlighted that over the past decade, Tamil Nadu's railway budget has increased more than sevenfold. He added that before 2014, rail projects in Tamil Nadu received only Rs 900 crore annually, while this year, the railway budget for Tamil Nadu exceeds Rs 6,000 crore.
He further highlighted that the Government of India is modernizing 77 railway stations in the state, including the Rameswaram station.
Pointing out the significant progress that has been made in the development of rural roads and highways over the last ten years, the Prime Minister highlighted that since 2014, with the support of the central government, 4,000 kilometres of roads have been constructed in Tamil Nadu, adding that the elevated corridor connecting Chennai Port will be another example of remarkable infrastructure.
He further mentioned that foundation stones were laid and inaugurations were conducted for road projects worth approximately Rs 8,000 crore. He said that these projects will enhance connectivity across various districts of Tamil Nadu and also improve links with Andhra Pradesh.
The Prime Minister noted that modern public transport systems like the Chennai Metro are enhancing ease of travel in Tamil Nadu, emphasising that extensive infrastructure development leads to the creation of new jobs across various sectors.
Underscoring the record investments in social infrastructure in India during the last decade, PM Modi expressed happiness that crores of families in Tamil Nadu have benefited from these initiatives. He highlighted that in the last 10 years, more than 4 crore pucca houses have been provided to poor families across the country, including over 12 lakh pucca houses built in Tamil Nadu under the PM Awas Yojana. (ANI)

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