CHENNAI: State Finance Minister Thangam Thennarasu on Saturday demanded that the Union government release Rs 8,943 crore in pending dues for the education and drinking water projects of the State government and highlighted the additional burden of Rs 5,000 crore imposed on the state owing to changes in the funding pattern of the rural employment scheme.
Participating in the Union government’s pre-Budget meeting in New Delhi, the minister said the Centre had not released its share of Rs 3,112 crore for the implementation of the Jal Jeevan Mission since September 2024.
He said the Hogenakkal Integrated Drinking Water Project, which is crucial for Dharmapuri and Krishnagiri districts, was progressing at a slow pace due to the non-release of the Union government’s share of Rs 2,283 crore.
Referring to school education, the minister said the Union government has not released Rs 3,548 crore under the Samagra Shiksha scheme. As a result, the education of nearly 44 lakh students and the livelihoods of about 2.4 lakh teachers have been affected.
Elaborating on the impact of tax restructuring, Thennarasu said changes in the GST regime have imposed an additional financial burden of Rs 10,000 crore on the State government. He urged the Union government to implement the compensation mechanism to ease the State’s fiscal stress.
Referring to changes in the funding pattern of the VB-G RAM G Act, which replaced the Mahatma Gandhi National Rural Employment Guarantee Scheme, he said the State has been forced to bear an additional burden of Rs 5,000 crore and requested the Centre to review the funding structure.
Seeking a revision in the funding pattern of centrally sponsored schemes, the Finance minister said the existing financial model has remained unchanged for a long time, resulting in States shouldering a disproportionate share of expenditure. Citing housing schemes, he said the Union government’s contribution was only 30% for rural housing and 10% for urban housing, and urged that it be increased to at least 75%.
The Minister also sought approval for key railway projects, including the Tiruppattur-Krishnagiri-Hosur, Madurai-Thoothukudi and Minjur-Thiruvallur-Sriperumbudur-Oragadam-Maduranthagam.