CHENNAI: Deputy Chief Minister O Panneerselvam, who holds the Finance portfolio, informed the Assembly on Monday that the devolution of Central funds to the State was at lower level and it had to depend upon its own tax revenues to meet financial requirements and commitments.Replying to the debate on demand for grants to departments, including Finance, he said the State’s own tax revenue (SOTR) stood at 68 per cent of the total tax revenue of Tamil Nadu. The share of devolution of tax from the Centre was at 19 per cent while the allocation for Central schemes was 13 per cent. “We have to perform with the state’s tax revenue resources as the major financial source,” he said.
Panneerselvam added that there was a limit to increase the state’s tax revenue resources and the chances for such a hike were diminished in the post-GST era. So was the case with non-tax revenue.Saying that the share of devolution from the Centre had dipped and Tamil Nadu had to forego at least Rs 6,000 crore every year. Giving the details of funds devolution and allocation for Central schemes, Panneerselvam said Tamil Nadu was granted Rs 19,838 crore during 2016-17 for Central schemes and the figure for 2017-18 was Rs 19,264 crore.