Centre indifferent to special compensation: Finance Secretary

Shanmugam made this disclosure while briefing the media on the budget on Thursday. He noted that Tamil Nadu lies in the rock bottom in the inter-se share of the states, wherein it witnessed a slide down from 4.969 per cent to 4.023 per cent in general divisible pool and from 5.047 per cent to 4.104 per cent in Service Tax pool between the successive Finance Commissions. 

“We have been pressing the Centre for an adhoc allocation in the form of special compensation and the Centre has not responded positively to this request so far,” he said. 

On the impact of the GST, the Secretary said that the past two month’s trend suggests that the growth rate to the tune of 14 per cent and had been receiving compensation at the promised level. He also noted that there was a slight increase in revenue through the GST and it worked out to 3 to 4 per cent roughly. 

“There are some collection and payment issues which we have raised with the GST Council and are hoping to work out a mechanism,” he said. Regarding improvement in fiscal indicators, the Secretary observed that the revenue deficit, though offmark, would come down gradually since revenue receipts growth is projected at 14 per cent while the growth of salaries and pension and other retirements were projected at 8 per cent. At present, the revenue deficit had been brought down and it is expected to come down gradually. He also assured that the fiscal deficit was well within the permitted limits. Meanwhile, Assembly Speaker P Dhanapal said the budget session will resume on Monday and will go on up to March 22.