Under Prime Minister Narendra Modi’s leadership, the Indian central government has increasingly been accused of targeting opposition-ruled states by withholding crucial funds. Recent developments, such as Tamil Nadu CM MK Stalin’s visit to Delhi to demand tax dues and Jharkhand CM Hemant Soren’s appeal for ₹1.36 lakh crore in unpaid coal company dues, highlight a deeper issue. This pattern of financial suppression is not merely an oversight but a deliberate strategy by the BJP-led government to weaken non-BJP states. In this article, we will analyze how Modi’s government uses financial levers to cripple opposition-ruled states and how this practice undermines the principles of federalism, ultimately harming India’s democratic fabric.
Modi Government’s Financial Tactics Against Opposition States:
In India, cooperative federalism is supposed to ensure that all states receive their rightful share of taxes and resources, regardless of political affiliation. However, under the Modi regime, opposition-ruled states have increasingly struggled to access these funds, while BJP-ruled states seem to enjoy faster clearances and timely disbursements.
One glaring example is Jharkhand CM Hemant Soren’s repeated requests for the ₹1.36 lakh crore owed to the state by coal companies operating within its borders. Despite being the backbone of the state’s revenue, these dues have been delayed under Modi’s central administration, affecting key welfare schemes and development projects. Similar to Soren, Tamil Nadu CM MK Stalin recently traveled to Delhi to claim his state’s rightful tax share, but with no concrete results.
These delays and withholding of funds are not isolated incidents but a clear reflection of the central government’s strategy to economically strangle opposition-ruled states, forcing them into financial crises while portraying the BJP as more competent.
BJP’s Manipulation of GST Compensation:
A significant part of the Modi government’s financial strategy against opposition states revolves around GST compensation. When the Goods and Services Tax (GST) was introduced, the government promised to compensate states for any shortfall in revenue due to the new taxation system. However, opposition-ruled states like Tamil Nadu, Kerala, and West Bengal have consistently complained about delayed GST payments.
In Tamil Nadu, Stalin’s government has had to cut back on essential services and development projects due to these GST delays. This strategic withholding of funds directly impacts the functioning of the state, making it difficult for opposition leaders to deliver on their promises to the people. The Modi government, on the other hand, projects itself as the savior, with BJP-allied states receiving their dues on time.
The Case of Jharkhand: A Clear Double Standard
Jharkhand CM Hemant Soren’s plea to release the ₹1.36 lakh crore owed to the state by coal companies is particularly illuminating. Jharkhand, with its rich mineral resources, heavily depends on coal revenue to fund social programs, healthcare, and infrastructure development. However, the central government has been slow to release these funds, crippling the state’s finances.
Adding insult to injury, when Jharkhand’s power companies delayed payments to the Damodar Valley Corporation (DVC), the central government was quick to deduct the outstanding amount, with interest, from the state’s bank accounts. This blatant double standard reveals how financial tools are being used by the BJP government as a political weapon to undermine opposition leaders like Soren, who have been vocal in their criticism of the Modi administration.
Political Strategy Against Federalism:
Modi’s government is systematically dismantling the cooperative federalism model that India was built upon. The Constitution mandates an equitable distribution of resources, but the central government’s consistent denial of funds to opposition-ruled states reveals its true political agenda. By crippling state governments economically, the Modi government seeks to discredit opposition parties in the eyes of the public.
This strategy is particularly concerning in states with significant socio-economic challenges, such as Jharkhand and West Bengal, where delayed funds directly impact the quality of life of millions of citizens. While BJP-ruled states get preferential treatment, opposition-ruled states are left to fend for themselves, often being forced to curtail welfare programs and development initiatives due to a lack of funds.
Stalin’s Plea: A Warning Sign for Opposition States
Tamil Nadu’s CM MK Stalin’s recent visit to Delhi serves as a stark reminder of the lengths to which
opposition-ruled states have to go to secure their rightful share of funds. Like Soren, Stalin has had to fight tooth and nail to get GST compensation, which is critical for keeping the state’s fiscal health intact.
The fact that two powerful opposition CMs have had to publicly appeal for their states’ dues within weeks of each other shows how deeply entrenched this financial manipulation has become under the Modi government. By adding Stalin’s case to Hemant Soren’s ongoing struggle, it becomes clear that this is not an isolated incident but a deliberate tactic to undermine opposition leaders by depriving them of financial resources.
Conclusion: The Attack on Federalism Must Stop
The Modi government’s consistent undermining of opposition-ruled states through financial deprivation is a direct attack on India’s federal structure. Whether it’s the delayed GST payments or the ₹1.36 lakh crore coal dues owed to Jharkhand, the central government is using financial tools to weaken opposition leaders and their ability to govern effectively.
If India is to remain a true democracy, this manipulation of financial resources must stop. The central government has a duty to ensure that every state, regardless of political affiliation, receives its fair share of resources. Only by returning to the core values of cooperative federalism can India ensure balanced development and safeguard the democratic rights of all its citizens.