Did the Union government give more funds than the tax paid by Tamil Nadu?

Claim

Finance Minister Nirmala Sitharaman says Tamil Nadu paid Rs 6.23 lakh crore in taxes, Centre gave Rs 6.96 lakh crore from 2014 – 2023

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Explanation

The Union Government has launched a campaign called ‘Viksit Bharat Sankalpa Yatra’ to bring the welfare schemes of the Union Government to the people. Union Finance Minister Nirmala Sitharaman attended a program in this regard at Kodambakkam, Chennai.

Speaking on the occasion, she said, ‘In the period 2014-2023, the central government received Rs. 6.23 lakh crore as tax from Tamil Nadu; but we have provided Rs 6.69 lakh crore to Tamil Nadu.”

She went on to add: “Total tax devolution for Tamil Nadu from 2014, when Modi came to power, till 2023–24 is Rs 2,88,627 crore on the recommendation of the Finance Commission. Apart from that, Rs 2,58,338 crore was given as a grant. Other than this, the money given to Tamil Nadu is Rs 6,412 crore, so every state could come out well after Corona. If we add all these together, 6,96,666 crore rupees have been given to Tamil Nadu.

I will talk about GST later. If we include all the direct taxes, i.e., income tax and corporate tax, the amount received from Tamil Nadu from 2014 to 2022–23 March 31 is 6,23,713.3 crore rupees. The amount for 2023–24 will be available only this March.

The GST you receive is entirely yours. 100 percent of SGST returns to you in 100%. For example, SGST for the 12 months ending March 31, 2022–23 is Rs 36,353.12 crore. IGST: Rs. 32,611.92 crore. 50:50 share in this. CGST: Rs. 27,360.95 crore. Of this, 41 or 42 crore rupees are given to the state.”

What’s the truth?

The sum that Nirmala Sitharaman, the Union Finance Minister, listed for Tamil Nadu between 2014 and 2023–2024 adds up to Rs 5,53,377 crore (2,88,627 + 2,58,338 + 6,412). It is unknown about the calculation used to claim the distribution of 6,96,666 crore rupees.

She then discusses the ten years from 2014 to 2023–2024 regarding the funding provided to Tamil Nadu by the Union Government. She only counted nine years, from 2014 to March 2022–2023, about the tax she received from Tamil Nadu. Again, only direct taxes are mentioned; other taxes are not.

She says, “Let’s talk about GST later,” after making the aforementioned claim, and she only mentions the amount of GST tax collected in 2022–2023. The entire amount of GST collected since 2017 has not been disclosed.

While calculating year-by-year tax devolution using the Union government’s budget data, Tamil Nadu received 2,46,995 crore in tax devolution income from the 2014–15 fiscal year to the 2022–23 fiscal year (9 years).

Even based on this, the fund provided by the Union Government to Tamil Nadu in 9 years is Rs.5,11,745 crore (2,46,995 + 2,58,338 + 6,412). This is less than the amount of direct tax paid by Tamil Nadu, says the Finance Minister.

It can be seen that Union Finance Minister Nirmala Sitharaman has only spoken about selective things. However, some media outlets have published false reports that the Union Government has provided more funds than the total tax payable by Tamil Nadu. She spoke only about the direct tax. It does not give full details of GST and other taxes paid from Tamil Nadu to the Union Government. And there are errors in her statement.

This is not the first time that the Finance Minister has given such false information. Earlier she lied in a press conference that the India Meteorological Department had alerted about the heavy rains in the southern districts of Tamil Nadu five days before. YouTurn published the truth about it with evidence.

Read More: Is the Department of Meteorology in India operating effectively?

Conclusion:

In our search, the information being circulated that Tamil Nadu is receiving more funds than the tax it paid is false. It can be seen that there is an error in the amount said by Finance Minister Nirmala Sitharaman and she is only talking about direct tax and omitting any details about GST and other taxes paid by Tamil Nadu.

 

LINKS:

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR BE 2014-2015

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR BE 2015-2016

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR BE 2017-18

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR BE 2018-19

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR BE 2019-20

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR RE 2020-21

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR RE 2021-22

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR RE 2022-23

STATEMENT SHOWING STATE-WISE DISTRIBUTION OF NET PROCEEDS OF UNION TAXES AND DUTIES FOR BE 2023-24

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Indu Meenakshi

Indu Meenakshi is a former Microbiologist-turned-journalist, works as a Sub-Editor at YouTurn. She additionally holds Master’s in Management and English Literature. As a fact-checker, her job entails actively dispelling false information found online, exposing fake news, and raising public awareness.
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