Deputy Chief Minister-Finance Minister O. Panneerselvam on Sunday asserted that the AIADMK government had not and would not backtrack from its position of not letting any injustice in devolution of resources to be caused to the State and its people.
Responding to DMK president M.K. Stalin’s observations on the issue, Mr. Panneerselvam recalled that while presenting the State Budget on February 14, he pointed out that the increase in the State’s inter-se horizontal share from 4.023% to 4.189 % was a “welcome reversal” in the trend of the State’s share consistently going down in the last few Finance Commissions’ reports. However, it “still does not make up for the injustices heaped” on Tamil Nadu in the past, especially by the 14th Finance Commission (FC). The State would again “strongly pitch” its case for adequate reward in sharing of resources before the 15th Finance Commisison.
Blames Stalin
The Deputy Chief Minister blamed Mr. Stalin for attempting to create an “unnecessary controversy” over the issue of reduction in the share in Central taxes during 2019-20 and said this had nothing to do with the 15th FC as the year in question was the final year of the award period of the 14th FC.
As an endorsement of the State’s contention that the State would experience revenue deficit post devolution, the 15th FC had recommended that the State be given a revenue deficit grant of ₹4,025 crore, which marked “a recognition of the committed welfare oriented expenditure of the State which fulfils the people’s legitimate aspirations.”
As the Union government, in its budget for the year, had earmarked only ₹30,000 crore against the Commission’s recommendation of the total grant of ₹74,340 crore towards post devolution revenue deficit grants, the State government would urge it to make adequate budgetary provision with a view to securing the entire recommended grant for the State, Mr. Panneerselvam added.
