Data shared by MP A Raja on the share of taxes returned to states reveals a skewed pattern, with certain states receiving a disproportionately lower share of central taxes and duties for their GST and direct tax contributions.
Coimbatore: In a critical examination of the central tax distribution, MP A Raja has raised concerns over the allocation of central taxes and duties to states. Using the hashtag #BJPLootingOurTax, the MP shared data reflecting the average share of taxes returned to states for the past five financial years, from FY 2018-19 to FY 2022-23.
According to the data, there appears to be a disproportionate pattern in the distribution of taxes. States like Tamil Nadu, Karnataka, and Telangana receive less than 50 paise for every rupee paid in GST and direct taxes, with Tamil Nadu getting as low as 26 paise. In stark contrast, states such as Madhya Pradesh, Uttar Pradesh, and Rajasthan are allotted a much higher share, with Uttar Pradesh receiving Rs. 2 and 2 paise.
This data sheds light on the disparities in financial allocations and raises questions about the equity of the tax distribution system under the current administration. The data is likely to fuel ongoing debates about federal financial relations and the principles of equity and fairness in the distribution of central funds to states.
According to the data, there appears to be a disproportionate pattern in the distribution of taxes. States like Tamil Nadu, Karnataka, and Telangana receive less than 50 paise for every rupee paid in GST and direct taxes, with Tamil Nadu getting as low as 26 paise. In stark contrast, states such as Madhya Pradesh, Uttar Pradesh, and Rajasthan are allotted a much higher share, with Uttar Pradesh receiving Rs. 2 and 2 paise.
This data sheds light on the disparities in financial allocations and raises questions about the equity of the tax distribution system under the current administration. The data is likely to fuel ongoing debates about federal financial relations and the principles of equity and fairness in the distribution of central funds to states.