24-May-2025 07:20 PM
2554
New Delhi, May 24 (Reporter) Reiterating his demand for release of Rs 2,220 crore funds withheld by
the Centre under the SSA scheme, Tamil Nadu Chief Minister M K Stalin also demanded increase
in State's share in central tax revenue to 50 per cent.
Speaking at the Niti Aayog meeting convened by Prime Minister Narendra Modi in New Delhi on
Saturday, said based on the recommendations of the 15th Finance Commission, the share of
States in the divisible pool of central taxes was increased to 41 percent.
However, over the last four years, only 33.16 percent of the Union's gross tax revenue has in fact been distributed to states, contrary to this recommendation, he noted.
Meanwhile, states' matching contribution to centrally sponsored schemes has continued to rise,
which further strains the finances of states like Tamil Nadu.
While on the one hand, reduced tax devolution from the Union government has impacted state
finances, Mr Stalin said on the other, increased spending by states in implementing Union government schemes has added to the financial burden.
Hence, it would be just to raise the States's share in central tax revenue to 50 percent.
The Union Government should consider this request seriously, Mr Stalin said.
Observing that the Prime Minister's vision to achieve a USD 30 trillion dollar economy by 2047 and
transform India into a developed nation is truly commendable, the Chief Minister said at the last Governing Council meeting, Mr Modi had 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, Mr Stalin said, quoting
Mr Modi.
Urging the Union Government to extend its support without discrimination, so that Tamil Nadu and other states could achieve their developmental targets, Mr Stalin said due to a few states not signing the MoU with the Union Ministry of Education on the PM Shri scheme, the SSA funding has been denied.
He said specifically, for the year 2024-2025, nearly Rs.2,200 crore in Union funding has been withheld for Tamil Nadu.
"As this impacts the education of children studying in government schools and under the RTE
(Right to Education) Act, I strongly urge you to release these funds without delay or one-sided conditions", he added.
He also said it was not ideal and augur well for the cooperative federal structure of India that states should constantly have to fight, argue, and approach courts to receive their rightful share of funding.
"This affects not just the growth of individual states, but the country as a whole", he added...////...