Analysis

War of Words on Tax Devolution and Flood Relief Fund: Nirmala Sitharaman attacks Udhayanidhi Stalin

9 months ago
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Udhayanidhi stalin

The dispute between Union Finance Minister Nirmala Sitharaman and TN Sports Minister Udhayanidhi Stalin regarding the distribution of central relief funds for flood-affected Tamil Nadu has intensified. The two ministers are engaged in a heated public argument, referencing personal matters such as “father’s property” and “language lessons”.

Udhayanidhi stated that Chennai, along with the adjacent districts and the southern districts, particularly Tuticorin and Tirunelveli, experienced significant damage due to heavy rainfall. After the Tamil Nadu rains, CM M K Stalin urged PM, Modi, to release an interim fund of Rs 7,033 crore and a permanent relief fund of Rs. 12,659 crore from the Union government to compensate for the damages caused by the heavy rainfall in Chennai and southern regions.

Debate on Declaring National Disaster

Tamil Nadu Chief Minister M K Stalin recently met with Prime Minister Narendra Modi in Delhi. During the meeting, Stalin requested the Prime Minister officially declare the state’s floods as a national calamity. He also urged for the prompt release of relief funds to enhance the ongoing efforts to support livelihood and repair the public infrastructure affected by the recent floods in the southern districts.

Nirmala quipped this was not a national disaster and there were no norms for announcing this as a national disaster. Udhay criticised the Union government for not declaring the calamities a national disaster. Further, he alleged that the last nine years of NDA rule was a national disaster, so they could not independently identify the calamity in Tamil Nadu. 

The slogan of give us Our Tax Back

There is a persistent debate going on in southern states about tax devolution, especially in Tamil Nadu. Between 2014-15 and 2021-22, Tamil Nadu contributed 5.16 lakh crore in direct taxes but received only 2.08 lakh crore through devolution. However, the same devolution resulted in a 9.04 lakh crore return for an amount of 2.24 lakh crores that Uttar Pradesh contributed.

The DMK Minister and Tamil Nadu CM Stalin’s son Udhayanidhi Stalin said, “We are not asking for anyone’s father’s money. We are only asking for the share of tax paid by the people of Tamil Nadu”.

Union Finance Minister’s Counter Attack

Nirmala Sitharaman replied that Udayanidhi Stalin “should speak responsibly when he is a minister” in answer to these comments. “He wants to know about the dad’s money.”

Is he having fun with his father’s property and doing what he wants? May I ask that? We should respect him because the people elected him. In Politics, it is not fair to speak about father and mother.” She said that as a political leader “who seeks to grow further,” Udayanidhi should “watch his tongue and speak words that fit his position.”

Also Read: Chennai grapples with Flood after cyclone: People, Netas and Heroes

Nirmala Sitharaman insulted Tamils 

Thangam Thennarasu, the finance minister of Tamil Nadu, said that under the Pradhan Mantri Awas Yojana, a housing scheme initiated by the Union government and named after the Prime Minister, the Centre’s financial contribution towards the construction of each house was only ₹1.5 lakh. In contrast, the State government provided ₹7 lakh for each unit.

But when Tamil Nadu is reeling under Natural Calamity, Nirmala Sitharaman insulted the people of the state, who were in the middle of a disaster, by “discourteously declining to provide funds” as Chief Minister M K Stalin had asked. He also said that Sitharaman responded “in an angry language of waging war on an enemy country,” referencing her press conference where she criticised how the DMK government handled the floods.

State-Wide Protest Against Union Government

Thol. Thirumavalavan, the founder and president of Viduthalai Chiruthaigal Katchi (VCK), declared that the party would demonstrate protests throughout the state to condemn the Union government.

The government is accused of neglecting the flood-affected individuals in Tamil Nadu by not providing sufficient financial aid. Additionally, the government is criticised for passing a recent law that restricts the appointment of Election Commissioners, which is seen as an attack on democracy.

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