The All India Anna Dravida Munnetra Kazhagam (AIADMK)’s manifesto for the upcoming Lok Sabha elections, released on Friday, listed a number of proposals to boost the revenue of States.
Apart from a proposal to ensure that revenue earned from cess and surcharge is shared with States [a position taken by its arch rival and the ruling party in the State, the DMK], the principal Opposition party also wanted the merger of GST [Goods and Services Tax] compensation cess with the tax itself and the apportionment of 50% of collections under Income Tax with the respective States, as done in the case of Central GST and State GST. At present, the levy of cess is in force till 2026 to to repay the loans taken during the COVID-19 years to make up for the shortfall in revenue collection.
Released by the party’s general secretary Edappadi K. Palaniswami, the manifesto recommended that States be allowed to borrow, for development projects, from external agencies without the stipulation of a counter-guarantee from the Union government. It also favoured the cost-sharing pattern of Centrally-sponsored schemes on the ratio of 75:25 instead of the existing 60:40.
