Chidambaram Rebuts PM Modi’s Tamil Nadu Fund Claims, Says ‘Ask A First-Year Economics Student

During his visit to Rameswaram on Sunday, Prime Minister Narendra Modi asserted that the NDA-led government had allocated three times more funds for Tamil Nadu's development compared to the pre-2014 period. He cited increased central support for railway and road infrastructure and highlighted a rise in allocations under various central schemes. Modi also took aim at the DMK-led state government, saying that despite the increased support, "some cry over funds."

Congress leader and former Union Finance Minister P Chidambaram, however, dismissed the Prime Minister's claims as misleading. In a pointed response, he said that annual increases in fund allocations are part of a routine economic process, and not necessarily indicative of any special consideration for Tamil Nadu. "Ask a first-year economics student. She will tell you that the economic metric will always be higher than in previous years," Chidambaram wrote on social media.

He further explained that the rise in figures must be understood in context, noting that India's GDP, the central budget, and government expenditure all grow annually. "You are one year older than in the previous year. In terms of numbers, the number will be bigger, but is it higher in terms of proportion of GDP or in terms of proportion of total expenditure?" he asked.

The debate comes amid ongoing tensions between the state and the Centre. Tamil Nadu Chief Minister M K Stalin has repeatedly accused the central government of withholding funds as a form of retaliation against the state's opposition to several Union policies, including the New Education Policy. The DMK has recently claimed that over ₹2,000 crore in funds were held back by the Centre.

In his Rameswaram address, the Prime Minister responded to those accusations, stating, "Before 2014, only ₹900 crore was allocated annually. You know who was calling the shots in the INDI alliance back then." He added that the state's rail budget has now crossed ₹6,000 crore and mentioned the modernisation of 77 railway stations.

Modi also highlighted that under the Pradhan Mantri Gram Sadak Yojana, approximately 4,000 kilometres of roads have been built in Tamil Nadu since 2014. He laid the foundation stone and inaugurated development projects worth over ₹8,300 crore in the state, including the new Pamban Bridge.