CHENNAI: The state government has sought the Centre to immediately release the Performance Grant of Rs 2,029.22 crore besides basic grant of Rs 4,345.47 crore for the year 2019-20 for the Rural and Urban Local Bodies as recommended by the 14th Central Finance Commission.
In a memorandum submitted to Union Finance Minister Nirmala Sitharaman, in New Delhi on Wednesday, Municipal Administration Minister S.P.Velumani said this fund release would greatly benefit the State in providing the basic amenities, such as water supply, sanitation, waste management, street lights etc., and also to settle various utility bills of the Urban Local Bodies.
“In view of progress made in election process like publishing of delimitation notification and reservation of seats and offices, and in the context of the State Election Commission’s affidavit before the Supreme Court of India that the notification announcing the schedule of the election will be published in the last week of October 2019, I request you to kindly recommend for the release of the Performance Grant of Rs 2,029.22 crore for 2017-18 to 2019-20 and Basic Grant of Rs 4,345.47 crore for 2019-20 for the Rural and Urban Local Bodies as recommended by the 14th Central Finance Commission,” he said.
Mr. Velumani assured that the State government would implement all the Rural and Urban Development schemes of Government of India “in letter and spirit and all the guidelines are scrupulously followed.”
While thanking the Centre for sanctioning Rs 1,608.03 crore as 2nd installment of Basic Grant of 14th Central Finance Commission for 2018-19, the Minister said this has paved the way for providing quality services to the people of Tamil Nadu and helped the local bodies in discharging their basic duties and civic functions effectively. “I profoundly thank you on behalf of the Chief Minister of Tamil Nadu and the people of Tamil Nadu for taking great efforts in releasing the amount,” he said.
Also, he thanked the Union Minister for taking efforts to reduce GST rate from 18 % to 12 % on Machined Job Work, reducing GST from 12 % to 5% for wet grinders. He urged the Centre to treat all Machined Job Orders, where material input is not involved to be taxed at the same level of 12 %. Besides reduce the GST rate for Machined job order items from 12 % to 5%, which will benefit many Micro and Small Scale industries.
