Tamil Nadu Minister Alleges Centre’s Partiality in Fund Allocation
The Finance Minister of Tamil Nadu (TN) alleged that the Central Government demonstrates partiality and bias in the allocation and release of financial funds to economically developed states, including Tamil Nadu.
Key Allegations by the TN Minister
- Discrimination Against Developed States: The Minister argued that states like Tamil Nadu, which maintain strong fiscal discipline and actively contribute significantly to the national tax pool, are being unfairly penalized and receive less than their rightful share of central grants and fund devolution.
- Focus on Discretionary Grants: The allegation implies that the Central Government favors states receiving discretionary or special grants, rather than ensuring a fair and equitable distribution of constitutionally mandated devolution.
- Financial Strain: The delayed or reduced release of funds places a significant strain on Tamil Nadu’s finances, compelling the state to rely more heavily on borrowing or compromise on planned state-level welfare and developmental schemes.
- Call for Transparency: The statement serves as a call for the Central Government to adopt greater transparency and fairness in its fiscal federalism policy, ensuring that high-performing states are appropriately rewarded for their economic contribution.
Source :- The Hindu Business Line