NEW DELHI: Tamil Nadu Finance Minister Palanivel Thiaga Rajan on Thursday requested Union Finance Minister Nirmala Sitharaman to release all pending funds, including Rs 6,230 crore under the State Disaster Response Funds (SDRF) and the GST compensation dues, before March 31 so that it can be accommodated in the State budget this fiscal year.
During a 30-minute meeting with Sitharaman, the State minister raised issues related to pending dues to TN, including flood relief funds and extra funds that can be borrowed this fiscal year. Thiaga Rajan said, the State could utilise the funds under the Financial Year 2021-22 as delay would mean it would have to be accommodated for FY 2022-23. According to sources, Sitharaman assured them to look into the matter.
The State government has submitted three memoranda to the Centre, seeking financial assistance of Rs 6,230.45 crore towards relief and restoration. The State has already incurred an expenditure of Rs 9,699.67 crore under SDRF which includes the Covid management expenditure and the Disaster Relief already provided.
Taking into account, the GST compensation released from the Compensation Fund as well as back-to-back loan released in FY 2020-21 and FY 2021-22, the GST compensation of Rs 2,894 crore and Rs 2,049 crore is pending to Tamil Nadu for April 20 to March 21 and April-September, 2021 respectively as per provisional figures.
Rs 6K crore sought for relief
The State government has submitted three memoranda to the Union government, seeking financial aid of Rs 6,230.45 crore for relief and restoration projects. TN has spent Rs 9,699.67 crore under SDRF.