Tamil Nadu Finance Minister Challenges PM Modi Over Alleged Fiscal Discrimination and Fund Denial

Thangam Thennarasu has leveled accusations against the Central government for consistently withholding Tamil Nadu's rightful share of funding.

Tamil Nadu's Finance Minister Thangam Thennarasu has charged the Union government with "systematic and deliberate discrimination" against the state. He has challenged Prime Minister Narendra Modi to address ten specific questions regarding what he terms as the Centre's "biased fiscal policies" and the undermining of cooperative federalism.

Jayaprakash, Vice President of Tamil Nadu BJP, refuted these allegations, stating to NDTV, "The Prime Minister considers India as a whole and doesn't engage in such trivial politics against opposition-governed states."

He further remarked, "The state Finance Minister should make comparisons between Tamil Nadu and other developed states like Karnataka or Maharashtra, not developing states like Uttar Pradesh. It's an unfair comparison."

Thennarasu has repeatedly claimed that the Centre denies Tamil Nadu its due financial allocations while preferentially supporting BJP-ruled states in distributing funds for infrastructure, welfare programs, and development initiatives.

"The Union government is penalizing high-performing states like Tamil Nadu for their efficiency," he declared in today's state assembly session, describing this approach as "a violation of federal fairness."

The Minister pointed out that Tamil Nadu's portion of central taxes has been continuously decreasing and presented ten questions directed at PM Modi.

According to his allegations, the Centre has withheld approximately Rs 4,000 crore in educational funding while releasing only Rs 450 crore under the Right to Education program. "How can the Centre promote a 'Viksit Bharat' while denying educational funding for children in one of India's most progressive states?" he questioned.

Regarding drinking water initiatives, the Minister claimed the state is owed Rs 3,407 crore under the Jal Jeevan Mission.

Thennarasu also emphasized what he described as the Centre's "selective approach" to infrastructure development, observing that "none of the eight newly announced expressways by the Union government have been allocated to Tamil Nadu."

In contrast, he noted, "states such as Uttar Pradesh, Gujarat, and Maharashtra have secured all the major highway projects."

Discussing railway budget allocations, the minister highlighted that while Uttar Pradesh received Rs 19,858 crore for the current year alone, Tamil Nadu had been granted a total of Rs 19,068 crore over the past three years. Additionally, while the Centre has yet to approve metro rail projects for Madurai and Coimbatore—with only Chennai currently having metro service—UP has received approval for metro systems in multiple cities, according to his claims.

He also referenced the Rs 81,803 crore owed by the National Highways Authority of India to Tamil Nadu. "The Centre speaks of progress yet owes Tamil Nadu the very funds essential for development," he stated.

Among his 10 questions, Thennarasu demanded explanations for: The significant reduction in Tamil Nadu's tax share; withheld GST compensation; outstanding dues from NHAI; delays in World Bank and ADB-assisted programs; the lack of new industrial corridors; reductions in central scheme allocations; denial of disaster relief funds; restrictions on state borrowing limits; and the overall weakening of cooperative federalism.

"Tamil Nadu isn't seeking special treatment, only fair treatment. Fiscal justice isn't charity—it's a constitutional entitlement," he emphasized.

He concluded with a firm warning that the state would continue to voice its opposition to fiscal injustice.