If the Centre helps on time, the State's debt burden will decrease, says Thangam Thennarasu
As the Centre has not approved the Phase II project of Chennai Metro Rail Limited (CMRL), the state is forced to borrow Rs 9,000 crore this year and Rs 12,000 crore next year.
Thangam Thennarasu (File)
CHENNAI: Tamil Nadu Minister for Finance, Thangam Thennarasu on Thursday said if the Union government had disbursed the State's share on time, the debt would be decreased by around Rs 26,117 crore this year and Rs 26,442 crore next year.
Criticising the Narendra Modi-led BJP government in his reply to the Budget 2024-25 in the House, Finance Minister Thangam Thennarasu said, "The Centre has not allocated adequate funds for schemes like PMAY and PMGSY and the State government is implementing the schemes with its own funds."
"Disaster relief funds have not been released to Tamil Nadu while Rs 18,000 crore was requested for damages caused by Cyclone Michaung and by the torrential rainfall in Chennai and Southern districts. But, they (Centre) are trying to build an image of huge amounts of funds being allocated during the elections, " Thennarasu said in his Budget reply.
Accusing the Modi government, the finance minister said the Central government is acting in a discriminatory manner as the DMK government has the support of the people of Tamil Nadu, adding that even till this moment, the Centre has not provided even 10 paise of funds, belonging to the State.
"As the Centre has not approved the Phase II project of Chennai Metro Rail Limited (CMRL), the state is forced to borrow Rs 9,000 crore this year and Rs 12,000 crore next year. The Centre is restricting the power of the State government to raise financial resources for development projects by imposing strict conditions, which will further affect the financial health of the state government, " he noted.
"Going with the conditions imposed by the Centre, the state government is obliged to provide Rs 17,117 crore this year and Rs 14,442 crore next year as compensation fund to the Tangedco. If the Centre does not impose such conditions and has disbursed the state's share on time, the debt would be decreased by around Rs 26,117 crore this year and Rs 26,442 crore next year, " detailed Thennarasu.