South Indian states unfairly treated in Central revenue distribution

In a recent debate in the Lok Sabha, Shashi Tharoor, a Congress MP from Thiruvananthapuram, criticized the Central government for not giving enough revenue to South Indian states. He mentioned that these states are vital for India's economic growth but receive only 15% of the Central tax pool. Tharoor described the Finance Bill as a "patchwork solution" and pointed out issues with the Goods and Services Tax (GST) system. He argued that South Indian states contribute significantly to tax revenue but do not get a fair share back. He compared the Indian GST system to China's, highlighting that India has a complex structure with a high tax rate of 28%. During the debate, BJP member Nishikant Dubey defended the government's budget, saying it aims to help workers and improve the economy. He criticized the Congress for always opposing the government. He noted that India's economy has grown significantly in the last decade. Other opposition members also raised concerns. Mahua Moitra from the Trinamool Congress accused the government of favoring wealthy businesses and engaging in "tax terrorism." Meanwhile, Congress MP Hibi Eden called for the removal of GST on life-saving drugs, arguing that it adds to the burden on patients. Overall, the debate highlighted deep divisions between the government and opposition parties on economic management and tax policies.