Funds Allocation Crisis: What Do The States Get For Every ₹100 They Pay?

Funds Allocation Crisis: What Do The States Get For Every ₹100 They Pay?

As many major faces of the opposition, including Chief Ministers of Kerala and Karnataka, in addition to DMK leaders have decided to take it to the Centre in Delhi, we look at a study of Budget 2022-23.

Juviraj AnchilUpdated: Thursday, February 08, 2024, 01:27 PM IST
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Kerala CM To Hold Protest, Accusing the Centre of Impropriety | File Photo

As many major faces of the opposition, including Chief Ministers of Kerala and Karnataka, in addition to DMK leaders have decided to take it to the Centre in Delhi, we look at a study of Budget 2022-23.

The North South Divide

According to the study, the demand raised by the leaders of the five Southern states find a reflection. For every Rs. 100 paid in direct tax to the Centre, New Delhi returns Rs. 40 in the form of the benefits that each of the individual state gets. When compared to the major northern states of UP, Bihar, Rajasthan and MP, one observes a stark difference in the numbers, as the average benefit that is returned to these states stand at Rs 421.75. Amongst them all, India's richest state of Maharashtra, only gets an astonishing Rs. 7.7 in return.

The Dominance of the Northeast

Bihar, is the biggest gainer amongst it's northern neighbors with Rs. 922 for the Rs. 100 it pays. While Uttar Pradesh receives Rs. 333.2 , Madhya Pradesh received Rs. 2,79.1 and Rajasthan got and amount of Rs. 154 for the Rs. 100 it gives. When it comes to the absolute numbers, Mizoram tops the list with Rs. 3,583.2, along with other small states in the Northeast. Manipur received Rs. 1,484.9, it's neighboring Nagaland received Rs. 1,252.5.

What is the Current Crisis About?

The DMK held its protest, the Karnataka CM Siddaramaiah and his deputy DK Shivakumar held their protest in Delhi on Wednesday, while Kerala CM P Vijayan will hold his protest at Jantar Mantar on Thursday. As the ongoing budget session continues, these states have accused the Centre not allocating funds to their respective states proportionately. The Centre on it's part has claimed, that the government plays no part in the process of distribution.

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