CHENNAI: Tamil Nadu chief minister M K Stalin on Friday urged the Union government to release the dues of Rs20,860.4crore under various heads to Tamil Nadu “to effectively overcome the fiscal crisis” of the state. This includes GST compensation arrears of Rs13,504.7 crore.
In a memorandum submitted to Union finance minister Nirmala Sitharaman, the chief minister requested the Centre to extend the period of GST compensation by at least two years beyond June 2022, given that the state’s revenues are still to recover despite easing out of the Covid-19 pandemic.
The state will face a revenue loss of approximately Rs20,000crore in the coming financial year.
“During the introduction of GST, the state agreed to forgo its fiscal autonomy with an assurance from the Union government that our revenues will be protected. In the last five years, there has been a wide gap between the actual revenues realized and the protected revenues guaranteed. This trend was visible even before the pandemic and the gap has been increasing ever since,” Stalin said.
The pandemic necessitated the state to incur additional expenditure towards upgrading health infrastructure, purchase of medical equipment, drugs and to implement welfare schemes for the vulnerable sections, the chief minister said.
Tamil Nadu finance minister Palanivel Thiaga Rajan, chief secretary V Irai Anbu and Union finance secretary T V Somanathan were present.
As per the memorandum, the HRD ministry has to release funds under schemes like Sarva Shiksha Abiyan, Rashtriya Madhyamik Shiksha Abhiyan and Right of Children to Free and Compulsory Education Act, 2009.
The jal shakti ministry is yet to release grants for the flood management programme and repair, renovation and restoration of water bodies.
The health ministry is yet to release grants for its family welfare programme.
The agriculture and farmers welfare ministry has to release funds under schemes like construction of fishing harbours and command area development and water management programme and national savings-cum-relief scheme for fishermen. The consumer affairs, food and public distribution ministry has to release assistance under National Food Security Act and custom milled rice subsidy of Rs2,203.25 crore.
