Chief Minister MK Stalin today urged the Union Government to immediately release Rs.20,860.40 crore towards pending GST compensation and many government schemes so that Tamil Nadu could effectively overcome the fiscal crisis. He made this demand during his meeting with Union Finance Minister Nirmala Sitharaman in New Delhi.
The important funds due from the Centre include GST compensation (13,504.74 crore), Custom Milled Rice subsidy (Rs.2,203.25 crore), Sarva Shiksha Abhiyan (Rs.2,109.08 crore) and Rashtriya Madhyamik Shiksha Abhiyan (Rs.1,092.22 crore).
"The State Government is facing severe financial stress despite easing out of the Covid pandemic at present, as the revenues have been badly affected due to the pandemic. The pandemic necessitated the State to incur additional expenditure towards upgrading health infrastructure, medical equipment, drugs and also implement welfare schemes for the vulnerable sections of the populace," the Chief Minister said in the memorandum submitted to the Union Finance Minister.
The Chief Minister sought early release of the balance basic grant of Rs.548.76 Crore and performance grant of Rs. 2029.22 Crore as performance grant under local body grant recommended by the 14th Finance Commission.
He also reiterated Tamil Nadu's demand for extending the period of compensation by at least two years beyond June 2022.