CHENNAI: Finance Minister Thangam Thennarasu on Thursday informed the Assembly that the state debt had increased by 128% during the previous AIADMK regime, but the present DMK government severely curtailed the debt and brought it down to 93%.
During a debate on the supplementary estimates, the minister criticised the union government’s decision to rationalise GST rates, pointing out that such measures would significantly reduce the revenue share due to the states.
Responding to AIADMK member P Thangamani’s remark that the rationalisation of GST rates would drastically cut down the state’s tax revenue, Thennarasu said, “You should use your alliance with the (BJP-led) union government to convey the state’s hardships. Despite repeated representations by opposition-ruled states in the GST Council, the centre has not disbursed the compensation cess that’s been long overdue.”
When Leader of the Opposition Edappadi K Palaniswami countered that the DMK’s 39 MPs in Parliament should raise their voice to secure Tamil Nadu’s due share of funds, Chief Minister M K Stalin intervened and said that the DMK MPs have been consistently raising the issue in Parliament and in every GST Council meeting.
Elaborating on the debt issue, Thennarasu said the AIADMK government had left behind a debt burden of Rs 4.8 lakh crore when it demitted office in 2021, up from Rs 2.1 lakh crore in 2016, an increase of 128%. “Even now we are paying interest of Rs 1.4 lakh crore for the debt left behind by the previous regime. In comparison, our government’s debt growth has been contained at 93%,” he said.
Thennarasu said that from the recommendations of the Fifth Finance Commission up to those of the Fourteenth Finance Commission, Tamil Nadu’s share from the union taxes has been steadily declining. The state’s share of tax devolution has fallen below 32%, he said.
Meanwhile, BJP MLA Vanathi Srinivasan said that not only the state but the union government too was facing revenue loss due to GST rate cuts.