OPS bats for GST-relief to state projects

Deputy Chief Minister O Panneerselvam on Thursday appealed to the Union government to exempt state government projects from the purview of Goods and Service Tax since it is adversely affecting the financial capacity of the states to execute them.

By :  migrator
Update: 2018-01-18 19:42 GMT
Deputy Chief Minister O Panneerselvam at the pre-budget meeting in New Delhi

Chennai

Addressing a pre-budget meeting of state finance ministers with Union Finance Minister Arun Jaitley at New Delhi, he also requested the Centre to include surcharge on the super-rich and other surcharges in the divisible pool of the resources of the state.

He urged the Centre to finalise the location for the AIIMS in the state and make an announcement in the coming budget. Reminding the Union Finance Minister that the state had sought financial assistance of Rs 5,255 crore for restoration works in Kanniyakumari district hit by Cyclone Ockhi, he appealed to the Centre to include the establishment of an integrated fishing harbour with a fish processing park in the district.

Citing the Comptroller and Auditor General report stating a shortfall of Rs 81,647 crore in the aggregate amount of devolution to the states during the period 1996-97 to 2014-15, OPS wanted the early settlement of this shortfall. He added that the due to Tamil Nadu would be about Rs 4,500 crore. He also wanted compensation for the state, which had lost due to the 14th Finance Commission recommendations. 

He sought adequate funds for the elevated corridors in Chennai, the Chennai-Bengaluru Expressway and the inter-city road network development projects approved under the ‘Bharatmala’ programme. Among the other road projects, he wanted funds for Koyambedu-Poonamalle-Walajahpet Road and Chennai Peripheral Ring Road project.

He requested the Centre to announce the inter-state river linkage project of Godavari-Krishna-Pennar-Palar-Cauvery and divert the surplus waters of Godavari to Tamil Nadu. The railway projects that he wanted the Centre to focus on include Chennai-Thoothukudi freight corridor, Chennai-Madurai-Kanniyakumari and Madurai-Coimbatore high speed passenger rail links. He appealed to the Centre to sanction phase II of the Chennai Metro Rail project in the Budget.

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