Deputy Chief Minister O Panneerselvam on Friday made it clear that the state would support GST, only if there was an iron-clad guarantee of compensation enshrined in the Constitution itself.
The 15th Finance Commission has accepted Tamil Nadu’s assessment that the state will have a post devolution revenue deficit and recommended a revenue deficit grant of Rs 4,025 crore for Tamil Nadu. This is finally a recognition of the committed welfare-oriented expenditure of the state which fulfils the people’s legitimate aspirations. However, while in the Action Taken Memorandum, the Central Government has indicated that the recommendations of the 15th Finance Commission on post devolution revenue deficit grants is accepted, as against the total grant of Rs 74,340 crore recommended by the Commission, the Union Budget includes a provision of only Rs 30,000 crore. The state government will take up the issue of adequate budgetary provision with the Central government and ensure that the state receives its entire recommended grant in 2020-21, he said.