Stalin demands 50% tax share, slams fund denial; AP CM proposes growth sub-groups at NITI Aayog meet

Prime Minister Narendra Modi, who chaired the meeting, asserted that if the Union government and states work together like Team India, "we will not have to wait till 2047 to become Viksit Bharat."
Prime Minister Narendra Modi with Tamil Nadu Chief Minister M.K. Stalin and Andhra Pradesh Chief Minister N. Chandrababu Naidu during the 10th meeting of the Governing Council of NITI Aayog, in New Delhi, Saturday, May 24, 2025.
Prime Minister Narendra Modi with Tamil Nadu Chief Minister M.K. Stalin and Andhra Pradesh Chief Minister N. Chandrababu Naidu during the 10th meeting of the Governing Council of NITI Aayog, in New Delhi, Saturday, May 24, 2025. PTI
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At the 10th Governing Council meeting of the NITI Aayog on Saturday, Tamil Nadu Chief Minister M K Stalin launched a sharp attack on the Union government for denying the state Rs 2,200 crore under the Samagra Shiksha Abhiyan (SSA), while Andhra Pradesh Chief Minister N Chandrababu Naidu proposed the formation of three focused sub-groups of states to fast-track the Centre's ‘Viksit Bharat @2047’ vision.

Stating that it did not augur well for cooperative federalism when states had to approach courts to get their rightful share of Central funds, Stalin urged Prime Minister Narendra Modi, who chaired the meeting, to release the withheld amount without delay or conditionality.

“Particularly, nearly Rs 2,200 crore of Union funds have been denied to Tamil Nadu in 2024–25. This affects the education of children studying in government schools and under the Right to Education Act,” Stalin said addressing the NITI Aayog meeting with Prime Minister Narendra Modi in the chair.

Stalin blamed the denial of funds on Tamil Nadu’s refusal to sign an MoU with the Union Education Ministry regarding the "PM Shri" scheme.

“It is not ideal for the cooperative federal structure that states should be given funds only after a legal battle. This will affect both state and national development,” he said, adding that the Centre must support states without discrimination to help them achieve developmental goals.

He also renewed his demand for a 50 per cent share in Central taxes, up from the current 33.16 per cent. “We currently receive only 33.16 per cent against the promised 41 per cent,” Stalin posted earlier on X, asserting that the Centre must keep its promises to states.

The Tamil Nadu CM called for a dedicated urban transformation mission on the lines of AMRUT 2.0, citing Tamil Nadu’s status as the most urbanised state in India.

Pointing to the achievements made under the Namami Gange Programme to clean up river Ganga, Stalin urged for a similar scheme for key rivers like Cauvery, Thamirabarani and Vaigai. He, however, underlined the need for naming the schemes in English, which he said served as the link language, and the states can respectively translate the names into their regional languages.

Prime Minister Narendra Modi with Tamil Nadu Chief Minister M.K. Stalin and Andhra Pradesh Chief Minister N. Chandrababu Naidu during the 10th meeting of the Governing Council of NITI Aayog, in New Delhi, Saturday, May 24, 2025.
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Highlighting the inclusive development model of his government, Stalin said, “The motto of our Dravidian Model government is ‘Everything for Everyone’.” He said the state was on track to becoming a USD 1 trillion economy by 2030, with significant progress in sectors ranging from automobiles to green hydrogen.

In contrast to Stalin’s tone, Andhra Pradesh CM N Chandrababu Naidu used the platform to propose structural reforms aimed at fast-tracking India’s transformation. He suggested the creation of three sub-groups of states to collaborate with the Union government and NITI Aayog on key priorities.

Naidu proposed three focused sub-groups to fast-track national progress — one on GDP growth to spur investments, manufacturing, exports and job creation with central Viability Gap Funding for PPP projects; another on population management to harness India’s demographic dividend while preparing for ageing and fertility challenges; and a third on tech-driven governance using AI, quantum computing, drones and digital platforms for real-time, citizen-centric delivery.

He said Andhra Pradesh is committed to contributing significantly to the national vision of Viksit Bharat @ 2047 — a $30 trillion economy built on quality infrastructure, equitable development and empowered citizens.

Naidu’s proposals were reportedly well-received, with Prime Minister Modi praising Andhra Pradesh’s reform blueprint. Officials privy to the deliberations said Modi urged other states to study Andhra Pradesh’s approach as a model for growth.

Naidu also paid tribute to the victims of the April 22 Pahalgam terror attack and lauded the Armed Forces’ swift Operation Sindoor in its aftermath. “I commend the Prime Minister’s strong leadership during the crisis and emphasise India’s resilience and self-reliance,” he said.

The meeting revolved around the theme “Viksit Rajya for Viksit Bharat @2047”, setting the stage for an inclusive, prosperous, and future-ready India as it approaches 100 years of independence.

Meanwhile, Telangana Chief Minister A Revanth Reddy met Prime Minister Narendra Modi and sought swift approvals for key infrastructure and industrial projects, including the ₹24,269 crore Hyderabad Metro Rail Phase-II and formal recognition of the Hyderabad-Bangalore defence corridor.

In a detailed presentation, Reddy highlighted four priority areas: metro expansion, regional connectivity, semiconductor ecosystem, and defence manufacturing. The Phase-II metro project proposes 76.4 km across five corridors, with Centre’s share pegged at ₹4,230 crore, the state’s at ₹7,313 crore, and the rest through debt financing. He said no expansion had occurred in the past decade, and the proposals, submitted in November 2024, had addressed all Centre’s queries.

Reddy also pressed for early clearance of the Regional Ring Road, urging simultaneous development of both northern and southern corridors around Hyderabad to avoid traffic bottlenecks and cost escalation. He proposed a 370-km Regional Ring Railway and a greenfield expressway linking Bandar port to a dry port near Hyderabad to support the pharma sector.

Citing Telangana’s strengths in semiconductors — with R&D centres of AMD, Qualcomm, NVIDIA and units by Foxconn and Kaynes — Reddy sought Centre’s backing for India Semiconductor Mission projects, pointing to the state's industrial land, skilled workforce and seismic safety.

For defence manufacturing, he urged official notification of the Hyderabad-Bangalore defence corridor. Despite being home to over 12 Defence PSUs, 1,000 MSMEs, and global players like Lockheed Martin, Boeing, GE and Safran, Hyderabad, he said, lacked Centre’s policy support. He also sought faster clearances for defence JVs, assured government orders, and PLI schemes for MSMEs.

Reddy requested that Hyderabad host the next DefExpo, citing its status as India’s leading Make in India aerospace and defence hub.

West Bengal Chief Minister Mamata Banerjee and three southern Chief Ministers, including from NDA ruled Puducherry, skipped the Niti Aayog's Governing Council meeting.

The reason for Banerjee's absence remains undisclosed, according to sources.

While the CM of Congress-ruled Karnataka, Siddaramaiah, was busy with "prior engagement" in the state and sent his speech to be read out in the council, Marxist veteran and Kerala CM, Pinarayi Vijayan deputed his cabinet colleague K N Balagopal on his behalf.

Similarly, Puducherry chief minister N Rangasamy, who heads the AINRC-led NDA coalition in the union territory, also skipped the event, an official source said.

The source, however, did not disclose the reason for Rangasamy skipping the event.

(With inputs from Mukesh Ranjan, Express News Service, PTI)

Prime Minister Narendra Modi with Tamil Nadu Chief Minister M.K. Stalin and Andhra Pradesh Chief Minister N. Chandrababu Naidu during the 10th meeting of the Governing Council of NITI Aayog, in New Delhi, Saturday, May 24, 2025.
If Centre, states work together like Team India, no goal is impossible: PM Modi
Prime Minister Narendra Modi with Tamil Nadu Chief Minister M.K. Stalin and Andhra Pradesh Chief Minister N. Chandrababu Naidu during the 10th meeting of the Governing Council of NITI Aayog, in New Delhi, Saturday, May 24, 2025.
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