Tamil Nadu would get ₹44,760.83 crore as its share of Central taxes as per the revised Union Budget estimates for 2023-24, presented by Finance Minister Nirmala Sitharaman on Thursday. This is about 7.4% higher than the ₹41,664.86 crore projected in the initial estimates.
As per the revised Union Budget estimates for 2023-24, after some adjustments made for previous years, Tamil Nadu would receive a total of ₹45,052.53 crore as its share of Central taxes.
In the interim Budget estimates for 2024-25, Tamil Nadu’s share of Central taxes is estimated to be ₹49,754.95 crore, which is about 11.2% higher than the revised estimates for 2023-24.
The actual devolution of Central taxes to Tamil Nadu for 2022-23 stood at ₹38,685.47 crore, as per Union Budget documents.
Amid higher tax collections, though there has been an increase in the amount of devolution from the Centre, the DMK government says it has been getting a much lower share.
Last month, Tamil Nadu Finance Minister Thangam Thennarasu pointed out that the State received only 29 paise for every rupee it gave to the Centre. He said that while Tamil Nadu accounted for 6.124% of the country’s population, its share from the total divisible pool of Central taxes had decreased from 5.305% under the 12th Finance Commission to 4.079% under the 15th Finance Commission.
While there has been an increase in the amount of Central taxes, it continues to be much lower than what should have been devolved to the States but for the indiscriminate levy of cesses and surcharges by the Union government, the Tamil Nadu Budget for 2023-24 pointed out.
Chief Minister M.K. Stalin had sought funds from the Union government to mitigate the damage caused by Cyclone Michaung to the Chennai region and the southern districts. The Union Budget has no reference to this.
More details would emerge when the State government presents its Budget for 2024-25 on February 19.
Tamil Nadu is likely to benefit from the broader announcements in the interim Union Budget for 2024-25, including the development of iconic tourist centres, viability gap funding for harnessing offshore wind energy potential for an initial capacity of one giga-watt, housing for the middle class, and a thrust on electric vehicles, among others.
