TN support to GST only on guarantee of compensation, says OPS

“It is the obligation of the Government of India to find resources to pay the compensation and there should be no effort to limit the compensation payable to the states. Chief Minister Edappadi K Palaniswami and late CM Amma (Jayalalithaa) have already raised the issue with the Prime Minister in this regard,” Panneerselvam said. “I urge the Government of India to discuss the matter in the GST Council to arrive at an appropriate solution,” he added in his budget speech.

The 15th Finance Commission has accepted Tamil Nadu’s assessment that the state will have a post devolution revenue deficit and recommended a revenue deficit grant of Rs 4,025 crore for Tamil Nadu. This is finally a recognition of the committed welfare-oriented expenditure of the state which fulfils the people’s legitimate aspirations. However, while in the Action Taken Memorandum, the Central Government has indicated that the recommendations of the 15th Finance Commission on post devolution revenue deficit grants is accepted, as against the total grant of Rs 74,340 crore recommended by the Commission, the Union Budget includes a provision of only Rs 30,000 crore. The state government will take up the issue of adequate budgetary provision with the Central government and ensure that the state receives its entire recommended grant in 2020-21, he said.