Stalin seeks release of Rs 20,860 crore Central dues to Tamil Nadu

The amount consists mainly of GST compensation (about Rs 13,500 crore), and dues on account of subsidy, Rashtriya Madhyamik Shiksha Abhiyan and Sarva Shiksha Abhiyan

In a meeting with the Union finance minister Nirmala Sitharaman in New Delhi on Friday, Tamil Nadu Chief Minister M K Stalin urged the Centre to release Rs 20,860 crore towards pending GST compensation and many government schemes. He indicated that this would help the state in overcoming the fiscal crisis.

The amount mostly consists GST compensation, which is about Rs 13,500 crore, and dues from schemes like rice subsidy, Rashtriya Madhyamik Shiksha Abhiyan and Sarva Shiksha Abhiyan.  

In a memorandum submitted to Sitharaman, the chief minister added that Tamil Nadu is in severe financial stress as the revenues were hit by the pandemic. He added that the state had to incorporate additional expenses in the health sector and its infrastructure and hence it is under financial stress even after easing out of the pandemic now.

On Thursday, Stalin had asked for the Centre government nod to send relief items – including essential commodities and medicines to Tamils living in northern and eastern parts of Sri Lanka – As the country is reeling under economic crisis. The island nation is reeling under financial stress with public debt that is estimated to be 119 percent of the GDP. Around 36 percent of its foreign debts are coming in the form of international sovereign bonds, followed by the Asian Development Bank (ADB) that contributes around 15 per cent.

“The union government should permit us to help Lankan Tamils in economic distress. The Prime Minister patiently listened and has assured to act on our demands. I thank him for his assurance,” Stalin had said. Other demands that the state is lining up before the Centre include help in Karnataka’s plan to come up with Makedatu Reservoir project across river Cauvery and exemption for the state students on NEET medical entrance among others.