At Niti Aayog meet, TN CM demands 50 percent share in central taxes

CHENNAI: Making a strong case for raising the State’s share in the central tax revenue to 50% at the 10th Niti Ayog governing council meeting, chaired by Prime Minister Narendra Modi in Delhi on Saturday, Chief Minister

MK Stalin said that it was not ideal for the cooperative federal structure of India to have states constantly fight, argue and approach courts to receive their rightful share of funds from the Union.

Flagging the discriminatory approach of the Union vis-à-vis allotment of funds to Tamil Nadu for centrally sponsored schemes, Stalin, who took part in the meeting after a three-year gap, urged the “Union Government to extend its support without discrimination, so that TN and other states can achieve their developmental targets.”

Not reluctant to raise in the PM’s presence the issue of the Union withholding Rs 2,200 crore Samagraha Siksha scheme funds and RTE funds due to Tamil Nadu for not signing the MoU related to the PM Shri scheme, Stalin strongly urged Modi to release these funds without delay or one-sided conditions. “This (non-release of funds) affects not just the growth of individual states, but the country as a whole.”

Citing the 15th Finance Commission recommendation for devolving 41% funds from the divisible pool of central taxes to the states, the CM said, “Over the last four years, only 33.16 per cent of the Union’s gross tax revenue has been distributed to states, contrary to this recommendation. Meanwhile, states’ matching contribution to centrally sponsored schemes has continued to rise, which further strains the finances of states like Tamil Nadu.”

Arguing that the reduced tax devolution from the Centre has impacted state finances and increased spending by states in implementing Union schemes has added to the financial burden, the CM said, “Hence, it would be just to raise the States’ share in central tax revenue to 50 per cent. The Union government should consider this request seriously.”

Urban renaissance need of hour

Listing out the impact of Kalaignar Magalir Urimai Thittam among the pioneering schemes of his governments and the industrial and economic progress achieved by TN, Stain said, “Our responsibility is to provide the growing urban population with amenities, robust infrastructure, and a high quality of life. A major scheme with substantial funding is necessary for the development of urban centres in our country. The AMRUT 2.0 scheme is nearing completion. At this juncture, there is an urgent need for a new urban renaissance scheme focusing on quality infrastructure, efficient mobility, and sanitation.”

Rejuvenate TN rivers like Ganges

Citing the remarkable success of Swachh Ganga project for restoring and improving Ganges, Stalin said, “Rivers are the lifelines of our nation, so a similar scheme is needed to clean and rejuvenate important rivers in TN such as the Cauvery, Vaigai, and Thamirabarani, as well as other major rivers across the country.” Stalin also requested that names be given in English, the lingua franca among all states, for the schemes.

Calling the PM’s vision to achieve US $ 30 trillion Economy by 2047 as commendable, the CM said, “At the last Governing Council meeting, the Prime Minister emphasised that because states are directly connected to the people, they must play a vital role in achieving this vision. Cooperative federalism is the foundational principle in realising this goal.”