Prime Minister Narendra Modi on Sunday said the NDA-led government allocated three times more funds for Tamil Nadu’s development compared to the period before 2014. Countering his claim, Congress leader and former Union Finance Minister P Chidambaram said that annual increases in fund allocations are part of a normal process and that this is basic knowledge, something even a first-year economics student could explain.
PM Modi earlier today countered the DMK-led state government’s allegations of fund withholding by the Centre. He highlighted a multifold increase in allocations for railways, road projects, and central schemes, adding that despite the increased allocation to Tamil Nadu, some “cry” over funds. Chidambaram questioned the claim, saying that annual allocations typically increase over time. He argued that what truly matters is whether the allocation has risen as a proportion of the GDP or overall government expenditure. “Hon’ble PM and Central ministers constantly say that they have given more money to TN in 2014-24 than was given in 2004-14 For example, Hon’ble PM said that his government has given for railway projects in TN seven times more money than before Ask a first year student of economics.
He added, “The GDP’s size is bigger now than before. The size of the central Budget is bigger every year than in the previous year. Government’s total expenditure is bigger every year than in the previous year. You are one year older than in the previous year. In terms of ‘numbers’, the number will be bigger, but is it higher in terms of proportion of GDP or in terms of proportion of total expenditure?” Tamil Nadu Chief Minister MK Stalin has repeatedly accused the Centre of withholding funds to penalise the state for opposing its policies. Recently, the DMK government alleged that over Rs 2,000 crore was withheld by the Centre in retaliation for its opposition to the New Education Policy.
PM Narendra Modi hit back at Stalin, listing various central schemes and fund allocations for Tamil Nadu to counter the allegations. “Before 2014, only Rs 900 crore was allocated annually. You know who was calling the shots in the INDI alliance back then,” he said. “This year, Tamil Nadu’s rail budget has crossed Rs 6,000 crore,” he added, noting that the Central government is modernising 77 railway stations. “In the past 10 years, under the Pradhan Mantri Gram Sadak Yojana, a lot of work has been done on village roads and highways.
