Centre denying funds to TN despite prudent handling of finances: Thangam

VIRUDHUNAGAR: Finance Minister Thangam Thennarasu on Sunday criticised the Centre for not releasing sufficient funds to the State despite the government’s prudent management of its finances.

He also claimed that the state’s borrowings are within the limits prescribed by the Finance Commission.

Minister for Finance and Environment & Climate Change said the comments made by AIADMK General Secretary Edappadi K Palaniswami that the state finances are in the doldrums were wrong and added that the opposition party leader should not make such comments in a public forum.

“The 15th Finance Commission in 2021-22 prescribed the borrowing limit to 28 per cent, but our borrowings were at 27.01 per cent and again in 2022-23, the Finance Commission prescribed 29.3 per cent, but our borrowings were at 26.87 per cent, below the limit prescribed by the Commission,” Thennarasu told reporters here.

“Similarly, for the year 2024-25, that is, last year, the Finance Commission fixed the borrowings limit to 28.9 per cent, but our borrowings were only at 26.47 per cent. If you see, we are being prudent in managing our finances, and our credits are below the prescribed norms of the Commission,” he said.

Thennarasu pointed out that what holds significance is whether the government’s borrowings meet the conditions set by the Finance Commission or not. “He (Palaniswami) himself had mentioned that the government received an additional Rs 1.10 lakh crore as revenues through commercial taxes, and this conveys our ability to manage our finances as we are using several technological initiatives like data analytics to maintain our financial stability,” he said.

Referring to a series of natural calamities caused by cyclones which affected the livelihood of several people over the last two-three years, he said the state government released funds from its finances and the Centre had released only Rs 726 crore and that too Tamil Nadu’s share from the State Disaster Fund.

“Even for the centre’s Samagra Shiksha Abhiyan scheme (an integrated scheme for school education), the Centre is yet to release funds of about Rs 2,000 crore. Like this, the Central government is yet to release their contribution to various schemes,” he said.

Thangam Thennarasu was responding to allegations by the AIADMK chief against the DMK government. AIADMK general secretary on Saturday accused the ruling party of not implementing all its poll promises. He also accused that DMK failed in cyclone response. Palaniswami had also accused the DMK government of spoiling the State’s economy.

Thangam Thennarasu also flayed the BJP government stating that it has been focusing on those governments which are either run by the party or by its alliance partners. “For example, the funds released to a state like Uttar Pradesh is about Rs 31,039 crore. For Bihar, it has been Rs 17,403 crore. But the funds allotted to the southern states is paltry,” he said.