Tamil Nadu Chief Minister M.K. Stalin wrote to his Kerala counterpart Pinarayi Vijayan on February 6, 2024, appreciating Kerala for moving the Supreme Court against the Union government’s attempts to “stifle State governments” over finances, and further hoped to collaborate to address this “crucial challenge”.
Mr. Stalin said Tamil Nadu faced a revenue shortfall of ₹20,000 crore per annum in comparison with the pre-GST regime, and that the Union had been refusing to extend the compensation regime.
Criticising the “discriminatory and unconstitutional attempts” pushed by the Union government, the T.N. CM said the Centre’s intent seemed to be aimed at “crippling” States’ abilities to raise resources and fund crucial developmental initiatives. This needs to be resisted by like-minded progressive States, he said.
