Pondy govt responsible for financial crisis: Narayanasamy

"The whole government machinery has come to a standstill with financial crisis deepening fast as a result of poor planning, increased tax evasion and lack of action to spend the funds provided by the Centre," he told reporters here.

Demanding a white paper on the financial position of Puducherry, he said instead of utilising the Plan funds provided by the Centre, Rangasamy was accusing him of standing in the way of Centre granting funds to the Union Territory.

Giving details of the financial assistance given by the Centre during 2011-12, Narayanasamy, Minister of State in the PMO and representing Puducherry in Lok Sabha, said Rs 1,323 crores was provided under grant in aid category.

Besides, "for the first time, Puducherry was granted Rs 258 crores under Central Sales Tax. It was indeed shocking that the Puducherry government had not spent Rs 1,477 crores out of total budget allocation of Rs 4,810 crores," he charged.

Narayanasamy alleged that "poor financial planning and failure to collect taxes" were responsible for "delay in finalising the plan size for the current fiscal 2012-13".

He also accused the AINRC Government of having failed "to rein in" anti social elements and said people were worried about "absence of rule of law now".