TN may lose Rs 15,000 crore due to GST reform: Thangam Thennarasu

CHENNAI: Finance minister Thangam Thennarasu on Thursday informed the assembly that the State will lose about Rs 15,000 crore per annum due to the recent GST rationalisation done by the BJP-led Centre. "Tamil Nadu will lose about Rs 13,000 to 15,000 crore per year. The Union may levy cess to compensate the losses faced by states," Thangam said during a debate on supplementary estimates.

Meanwhile, AIADMK ex-minister P Thangamani said that the state's debt was increasing. He warned that the reduction in GST would lead to a further decline in state revenue and urged the state to take measures. Thangam Thennarasu responded, stating that the DMK government pays Rs 1.4 lakh crore per annum in interest on the debt incurred by the previous AIADMK regime. From 2011-12 to 2015-16, the debt under the AIADMK rule increased from Rs 1.01 lakh crore to Rs 2.11 lakh crore, which is a 108 per cent rise, the DMK minister said.