Tamil Nadu has lost Rs 6,000 crore, CM O Panneerselvam tells PM Narendra Modi

The loss to Tamil Nadu due to the reduction in its share in the divisible pool and the discontinuance of special purpose and state specific grants for programmes like National Health Mission and Swacha Bharat Abhiyan is estimated at Rs 6,000 crore per annum. With the inevitable reduction in central plan assistance, Tamil Nadu will stand to lose even more.

“The unbalanced formula adopted by the commission has virtually singled out Tamil Nadu for the most adverse treatment,” the letter reads. “The reduction in the inter-se share of Tamil Nadu of 19.14 percent represents the biggest loss in share amongst all states.”

In fact, the commission expects the gross transfer to be 49 per cent of the gross tax receipts of the centre, which is less than the 53.4 per cent level reached in 2011-12.

In addition, the state’s share for 13 key programmes, including National Agricultural Development Programme, Pradhan Mantri Krishi Sinchai Yojana, Swaccha Bharat Abhiyaan, National Health Mission, National Livelihood Mission, Smart Cities Programme, Housing for All and Integrated Child Development Service (ICDS) is going to be enhanced, which means that the state government’s expenditure priorities would be determined by the Union government.

The state being asked to take on additional burden of expenditure on central government priorities is an unfair expectation and outcome. This may be kept in mind when the centrally sponsored schemes that are proposed to be continued are re-designed by the various ministries. Further, we find that the Union budget has a provision of Rs 20,000 crore to be allocated for schemes approved by the NITI Aayog, CM pointed out.