Don't play politics with funds, it affects people's lives, FM Thangam Thennarasu tells Centre

CHENNAI: In a sharp rebuttal to the Union government, State Finance Minister Thangam Thennarasu on Friday urged the Centre to release the pending financial dues to the State without indulging in politics or political vendetta. He urged the BJP-led Centre not to allow politics to dictate its fiscal decisions.

"The Union government must release Tamil Nadu's pending funds immediately, not out of charity, but as a matter of constitutional right. Political bias cannot dictate economic justice."

Thangam Thennarasu charged that deliberate withholding of funds had crippled several welfare and infrastructure schemes vital for millions of citizens.

In his reply to the debate on supplementary demands for grants in the assembly, Thangam Thennarasu said the State's economy had recorded an 11.19% growth rate, the highest in 14 years, under Chief Minister MK Stalin's "Dravidian model" governance. "This double-digit growth, achieved after 2010–11, is a testament to the Chief Minister's tireless efforts and visionary policies. It marks a crucial milestone toward making Tamil Nadu a one-trillion-dollar economy by 2030," he said.

However, the minister charged that the Union government continued to "strangle" the State's fiscal autonomy by delaying or denying legitimate funds. Citing figures, he said over Rs 4,000 crore due to Tamil Nadu under the Right to Education Act remained undisbursed, with the Centre releasing only Rs 450 crore so far. Similarly, under the Jal Jeevan Mission, Rs 3,407 crore owed to Tamil Nadu for rural and urban drinking water projects had yet to be released.

"The Centre's refusal to release these essential funds, meant for children's education, teachers' salaries, and basic water infrastructure, reveals an alarming level of political prejudice," Thennarasu said. "Education and drinking water are not political tools; they are moral responsibilities. Yet, the Union government has turned financial policy into an instrument of discrimination," he said.

The Minister also pointed out that while the Centre announced Rs 50,655 crore worth of new national highway projects in 2024–25, not a single project was allotted to Tamil Nadu. "Of the eight new expressways sanctioned, Uttar Pradesh alone received Rs 11,846 crore, Gujarat Rs 10,534 crore, and Maharashtra Rs 17,827 crore. Tamil Nadu was left out entirely; this is blatant regional bias," he charged.

Calling the funding disparity "a direct affront to cooperative federalism, Thangam Thennarasu said, "Tamil Nadu contributes Rs 7.5 lakh crore in taxes to the Union exchequer but receives only Rs 2.85 lakh crore in return, while states like Uttar Pradesh get three times more than they contribute."

He charged that the Centre's discriminatory fiscal policy has cost Tamil Nadu nearly Rs 2.63 lakh crore in Finance Commission allocations, adding that the State's rightful share of 6.1% of the national population had been reduced to a meagre 4% in financial devolution.