Funds Allocated by the Central Government to Tamil Nadu: Detailed Report Based on CAG Findings
The latest Comptroller and Auditor General (CAG) report reveals a consistent year-on-year increase in the funds and grants allocated by the Central Government to Tamil Nadu. This includes Tamil Nadu’s share in central taxes, grants-in-aid, and overall financial transfers. Let’s delve into the detailed financial trends observed in recent years.
1. Tamil Nadu’s Share in Central Taxes:
The share of Tamil Nadu in central taxes has fluctuated over the years but shows an overall upward trend.
- 2018-19: ₹30,638 crore
- 2019-20: ₹27,783 crore (slight decline)
- 2020-21: ₹32,576 crore (recovery and growth)
- 2021-22: ₹37,458 crore (significant growth)
- 2022-23: ₹38,731 crore (further increase)
Key Highlight:
- In 2022-23, the share in central taxes rose by ₹1,273 crore compared to the previous year.
2. Grants-in-Aid to Tamil Nadu:
Central government grants provided for various state-specific schemes and programs have also seen steady growth over the years.
- 2018-19: ₹23,368 crore
- 2019-20: ₹27,783 crore
- 2020-21: ₹32,576 crore
- 2021-22: ₹37,458 crore
- 2022-23: ₹38,731 crore
Key Observations:
- In 2022-23, the grants-in-aid increased by 7.66% compared to 2021-22.
3. Total Financial Transfers from the Centre:
The total financial transfers, which include central tax shares, grants, and other financial aid, have steadily increased over the years.
- 2018-19: ₹54,000 crore
- 2019-20: ₹54,175 crore (marginal increase)
- 2020-21: ₹57,501 crore (notable growth)
- 2021-22: ₹72,509 crore (highest growth observed)
- 2022-23: ₹76,465 crore (further increase)
Key Insights:
- The year 2021-22 saw the highest jump in total financial transfers, reaching ₹72,509 crore.
- In 2022-23, Tamil Nadu received ₹76,465 crore, exceeding the allocations estimated by the 15th Finance Commission.
4. Key Observations on Financial Trends:
Central Tax Share:
- Tamil Nadu’s share in central taxes saw some fluctuations during the pandemic (2019-20 and 2020-21).
- Post-pandemic, there was a recovery, with consistent growth in 2021-22 and 2022-23.
Grants-in-Aid:
- Central grants primarily target infrastructure development, welfare schemes, and state-specific initiatives.
- The steady rise in grants highlights Tamil Nadu’s active role in utilizing these funds effectively.
Total Financial Transfers:
- Between 2018-19 and 2022-23, the total financial transfers grew by 42.36%, from ₹54,000 crore to ₹76,465 crore.
- This substantial growth underscores the state’s increasing reliance on central funding for developmental projects.
5. Impact of Increased Central Funding:
Infrastructure Development:
- Investments in roads, education, healthcare, drinking water, and electricity infrastructure have surged due to increased funding.
Improved Welfare Schemes:
- Central grants have bolstered state welfare programs like Amma Schemes, education initiatives, and labor welfare programs.
Economic Growth:
- The rising financial transfers contribute significantly to Tamil Nadu’s economic development and social progress.
6. CAG Report Findings:
The CAG report provides clarity and transparency in the financial relationship between the Centre and Tamil Nadu:
- Consistency in Fund Allocation:
- The Centre’s fund allocation to Tamil Nadu has seen a steady rise despite minor setbacks during specific years.
- 15th Finance Commission Exceedance:
- The 2022-23 allocation exceeded the estimates set by the Finance Commission, reflecting the Centre’s increased support.
- Economic and Social Development:
- The state’s developmental initiatives have benefited significantly from these financial inflows, enabling a faster pace of growth.
7. Highlights from Recent Financial Data:
Year-on-Year Growth:
- The annual growth in financial transfers showcases Tamil Nadu’s rising share in central support.
Infrastructure and Welfare:
- The funds are directed towards core sectors such as education, healthcare, and rural development, which are vital for sustainable growth.
Pandemic Recovery:
- Post-COVID-19 recovery has been strong, with increased allocations helping to mitigate economic challenges.
Conclusion:
The steady increase in central funds and grants to Tamil Nadu highlights the state’s growing importance in India’s economic framework. With consistent support from the Centre, Tamil Nadu has been able to:
- Strengthen its infrastructure.
- Expand welfare programs.
- Drive economic and social development.
The CAG report’s analysis reaffirms the robust fiscal relationship between the Centre and Tamil Nadu, ensuring that the state remains on a trajectory of progress. This increase in funding is a testament to the efficient utilization of funds and the Centre’s recognition of Tamil Nadu’s development potential.
