NEW DELHI: The DMK party in Tamil Nadu raised concerns on Monday about alleged unfairness in Union tax revenue distribution, with party leader TKS Elangovan highlighting that Tamil Nadu receives only 27 paise in return for every rupee collected as tax, while Uttar Pradesh gets Rs 2 for each rupee.
This debate emerged as Prime Minister Narendra Modi visited Rameswaram to inaugurate infrastructure projects worth Rs 8,300 crore.

“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 accused the central government of favoring BJP-ruled states in tax distribution, particularly after the implementation of GST.
“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.
Prime Minister Modi inaugurated several significant projects in Rameswaram, including India’s first vertical lift sea bridge – the new Pamban Rail Bridge. He also flagged off a train and a ship from the road bridge.
The Prime Minister emphasized that Tamil Nadu’s railway budget has increased more than sevenfold over the past decade. He noted that before 2014, rail projects in the state received only Rs 900 crore annually, compared to the current allocation exceeding Rs 6,000 crore.
The central government is modernizing 77 railway stations in Tamil Nadu, including the Rameswaram station. Since 2014, approximately 4,000 kilometers of roads have been constructed in the state with central government support.
Modi announced road projects worth Rs 8,000 crore, aimed at improving connectivity across Tamil Nadu’s districts and with neighboring Andhra Pradesh. He also highlighted the development of modern public transport systems like the Chennai Metro.
The Prime Minister discussed social infrastructure investments in Tamil Nadu, mentioning that over 12 lakh pucca houses have been built in the state under the PM Awas Yojana, as part of the nationwide initiative that has provided more than 4 crore pucca houses to poor families.
The elevated corridor connecting Chennai Port was highlighted as another example of significant infrastructure development. Modi emphasized that such extensive infrastructure development creates new employment opportunities across various sectors.