Fact check: Did Modi allocate bigger chunk of central pie to Tamil Nadu?

JP Nadda claims state received ₹4.52 lakh crore as per the 14th Finance Commission’s recommendations. How true is the claim?

relief fund, Prime Minister Narendra Modi, coronavirus, COVID-19, donations
File Photo: PTI

Tamil Nadu has consistently complained about the diminution in the overall flow of central funds to the state. During the presentation of each state budget, Deputy Chief Minister O Panneerselvam complains that Tamil Nadu is being punished for better population control and industrial growth.

On Saturday, BJP president JP Nadda claimed that Tamil Nadu received 4.52 lakh crore as per the 14th Finance Commission’s recommendations for the period 2015-16 to 2019-20.

“Prime Minister Modi has brought Tamil Nadu into the mainstream. In the 13th Finance Commission, Tamil Nadu got only 94,000 crore. While in the 14th Finance Commission under PM Modi, the state got 5.42 lakh crore, which was 4.5 times more,” Nadda said at a campaign meeting in Modakurichi, Erode.

Advertisement

Fact Check: The 14th Finance Commission recommended a sum of 1,79,835 crore for the said period.

“The 13th Finance Commission had recommended a sum of 72,070 crore and the 14th Finance Commission recommended a sum of 1,59,450 crore. In respect of grants in aid, the 13th Commission recommended a sum of 11,366.90 crore, which included grants for local bodies and SDRF. The 14th FC recommended a sum of 20,385 crore, which consisted of only local bodies and SDRF,” an official said.

Also read: Southern states cry foul as finance panel recommends fund cut

The aggregate sum recommended by the 14th Finance Commission was 1,79,835 crore. However, the actual fund releases will be less as they are based on collection of taxes by the Centre.

Several times the state government has raised the issue of lowering of percentage of devolution to Tamil Nadu. “I have already mentioned that revenue deficit was due to decrease of fund sharing ratio following recommendations of the 14th Finance Commission,” Panneerselvam told the Tamil Nadu assembly in reply to a question from DMK’s PTR Palanivelrajan in February last year.

In the 14th Finance Commission, Tamil Nadu’s share of funds was reduced to 4.023 per cent from 4.969 per cent. Due to that, the state incurred an average loss of 6,000 crore per year, Panneerselvam said.

Get breaking news and latest updates from India
and around the world on thefederal.com
FOLLOW US: