Oppn accuses Centre of neglecting states ruled by rivals, attaches motive to Fin Bill

NEW DELHI: Opposition MPs on Monday attacked the Centre over alleged neglect of the states ruled by rival parties.

"...the five southern states - Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Telangana - are among India's strongest economic engines. They are paying taxes. They generate over a quarter of the country's direct taxes. They contribute 28.5% of GST. But when it comes to receiving their fair share, they get a mere 15% of the Centre's tax pool. How is this acceptable?" asked Shashi Tharoor, Congress MP from Thiruvananthapuram.

Initiating the debate on the Finance Bill in Lok Sabha, Tharoor claimed that the bill was yet another move by the Centre to hoard revenue at the states' expense by slashing basic customs duty on several items which are shared with states and shifting the difference to the Agricultural Infrastructure and Development Cess (AIDC), which the Centre keeps entirely.

The Thiruvananthapuram MP demanded the constitution of an independent fiscal council to serve as a redressal body, ensuring that the States have a say in how their hard-earned revenue is allocated.

DMK MP Kalanidhi Veeraswamy alleged BJP-led Centre presented the Finance Bill for announcing tax exemption for those earning up to Rs 12 lakh in view of the Delhi elections. "They have achieved their aim and won in the Delhi assembly elections. So, I would like to congratulate them on their efforts," Veeraswamy said, in a sarcastic manner, and went on to add that Tamil Nadu does not get its fair share from tax collected by the Centre.

"If you look at the statistics over the last 10 years, Tamil Nadu has paid about Rs 8 lakh crore in the form of direct taxes, but the devolution which has come back to Tamil Nadu is only about Rs. 2.4 lakh crore. The amount of Rs.5.6 lakh crore has been utilised by the union govt where it has been disbursed to other states like UP, Bihar, and other less performing States," the Chennai North MP said. He also raised the issue of implementation of the NE.

Punjab MP Harsimrat Kaur Badal said there wasn't a single mention in the budget about MSP (Minimum Support Price) - an issue for which farmers from the state have been agitating for months.

TMC MP Abhishek Banerjee accused the Centre of withholding Rs 2 lakh crore in funds due to West Bengal, making it a key campaign issue for the upcoming state elections. He said BJP's actions had previously backfired, citing TMC's 2021 victory. TMC plans to intensify its campaign on the issue and has set up grassroots committees to prevent electoral fraud by verifying voter rolls, with training camps for supervisors set to conclude by April 30.

With inputs from Mohua Chatterjee