Tamil Nadu's Finance Minister, Thangam Thennarasu, has issued a strong appeal to the Bharatiya Janata Party-led central government, urging the immediate release of thousands of crores in pending dues for critical state projects. The minister raised these pressing financial concerns during a crucial meeting of state finance ministers held in New Delhi on Saturday, ahead of the upcoming Union Budget.
Major Infrastructure and Education Funds in Limbo
During his address, Minister Thennarasu highlighted several high-value projects where central funds are delayed. His primary demand was for the release of Rs 9,500 crore allocated for the Chennai Metro Rail Phase-II project. He pointed out that while the Union government granted approval for this long-pending phase in October 2024, the state has not received the full financial benefit even after a year and a half.
Furthermore, the minister insisted that the Centre also approve new metro rail proposals for the major cities of Madurai and Coimbatore, emphasizing the need for balanced regional development.
In the education sector, Thennarasu flagged a critical delay in funds under the Samagra Shiksha Abhiyan (SSA). He stated that the central share for the financial years 2024-25 and 2025-26, totaling Rs 3,548 crore, remains unreleased. "These funds are essential for the functioning of schools and directly affect the education of 44 lakh students and the livelihoods of 2.4 lakh teachers and staff in Tamil Nadu," he asserted.
Financial Strain from New Schemes and GST
The minister voiced significant concerns over the financial implications of the centrally-sponsored VBGRAMG scheme. He explained that due to its new funding pattern, Tamil Nadu would face an additional expenditure of approximately Rs 5,000 crore. This burden could increase further if central allocations are reduced based on poverty parameters. Thennarasu urged a reconsideration of the scheme's funding pattern and normative allocation to states.
Revisiting a longstanding issue, the minister claimed that Tamil Nadu has suffered an estimated revenue loss of Rs 10,000 crore due to the implementation of the Goods and Services Tax (GST). He called on the Union government to introduce a permanent compensation mechanism to alleviate such losses faced by state governments.
Urgent Calls for Textile Sector and Water Projects
Addressing external economic pressures, Thennarasu called for a special support package for the textile industry in the wake of recent tariff hikes by the USA on Indian goods. He recommended measures like interest subvention, targeted subsidies, export incentives, and tax relief to protect employment and maintain export competitiveness.
On the water front, the minister pressed for the immediate release of Rs 3,112 crore in pending funds under the Jal Jeevan Mission. Additionally, he sought the central share of Rs 2,283 crore for the Hogenakkal Water Supply Project Phase-III, which is crucial for providing drinking water to several districts.
Thangam Thennarasu's comprehensive presentation in Delhi underscores the growing fiscal tensions between the state and the centre, with Tamil Nadu seeking timely financial support to sustain its development momentum and welfare commitments.
