Centre cuts budgetary allocation to TN by 20%: Jaya

CM Jayalalithaa criticises GST, terms it an attempt to lay hands on commercial tax resources

Tamil Nadu Chief Minister today came down heavily on the Centre, stating that the Congress led UPA Government has cut 20% of the money which was allocated to the State in the Budget expenditure.

Responding to a question at the State Assembly today, Tamil Nadu Chief Minister alleged that the Union Government reduced the allocation to the state by 20% in the Union Budget.

"After making allocations in the Union Budget, the Centre has reduced the allocation by 20% for Tamil Nadu,” said Jayalalithaa, adding that what the state could do after spending money and planned projects, based on based on Centre's allocation of funds.

The Chief Minister said, “the Centre's budgetary allocations should have credibility. Based on Centre's allocations and in the hope that the state would be reimbursed by the Centre, expenditure is being made. But, the Centre has cut 20% of allocations. We are fighting against several problems”.

Jayalalithaa also criticised Centre's decision to introduce GST and termed it as an attempt to lay hands on the commercial tax resources, which forms the major portion of revenue to states.

“Once the regime change happens in New Delhi, post the election next year, we will throw away the GST Bill," said Jayalalithaa.