New Delhi: Tamil Nadu Chief Minister MK Stalin on Saturday at the 10th NITI Aayog Governing Council meeting held here and said that it is not ideal for the cooperative federal structure of India that states should constantly have to fight, argue, and approach courts to receive their rightful share of funding as affects not just the growth of individual states, but the country as a whole.
He demanded a rightful 50 percent share for states in central taxes saying that it only receives 33.16 percent against the promised 41.
The Chief Minister also said that on the lines of AMRUT 2.0, there is a need for a dedicated urban transformation mission, as Tamil Nadu is the most urbanised state in India and urged a Clean Ganga-style project for Cauvery, Vaigai and Thamirabarani, with names in English for national coherence and regional pride.
Speaking at the Niti Aayog meeting, which was chaired by Prime Minister Narendra Modi, Stalin, who is also the DMK chief said that his state recently organised a rally in support of the armed forces amidst border tensions, demonstrating unity as a nation.
The Chief Minister highlighted sever of the schemes that his government has taken up to achieve inclusive and sustainable economic growth founded on equality and social justice.
He highlighted that his government has been working with a clear goal – to achieve a one trillion dollar economy for Tamil Nadu by 2030.
“The results of our efforts are evident in key indicators of economic progress.
In recent years, we have maintained a growth rate above 8 percent annually. Last year, we registered the highest growth rate in the country at 9.69 percent,” he said.
Stalin alao said that guided by the challenge of reaching a 4.5 trillion dollar economy by the centenary of Indian independence in 2047, we continue to strive relentlessly. I assure you that our contribution to India’s target of a 30 trillion dollar economy will be significant.
Tamil Nadu has become highly industrialised. From automobiles to green hydrogen, we see robust growth across all emerging sectors.
The DMK leader demanded: “A major scheme with substantial funding is necessary for the development of urban centres in our country. The AMRUT 2.0 scheme is nearing completion. At this juncture, there is an urgent need for a new urban renaissance scheme focusing on quality infrastructure, efficient mobility, and sanitation. I urge you (Modi) to introduce such a scheme soon.”
Staling highlighted the Prime Minister’s vision to achieve a 30 trillion dollar economy by 2047 and transform India into a developed nation and dubbed it truly commendable.
“At the last Governing Council meeting, the Prime Minister emphasised that because states are directly connected to the people, they must play a vital role in achieving this vision. Cooperative federalism is the foundational principle in realising this goal.
“Therefore, I urge the Union Government to extend its support without discrimination, so that Tamil Nadu and other states can achieve their developmental targets,” the Chief Minister said.
He pointed out that due to a few states not signing the MoU with the Ministry of Education on the PM Shri scheme, the SSA funding has been denied, specifically, for the year 2024-2025, nearly Rs 2,200 crore in Union funding has been withheld from Tamil Nadu.
“This impacts the education of children studying in government schools and under the RTE (Right to Education) Act. Thus, I strongly urge you to release these funds without delay or one-sided conditions,” Stalin demanded.
The DMK leader said, “It is not ideal for the cooperative federal structure of India that states should constantly have to fight, argue, and approach courts to receive their rightful share of funding. This affects not just the growth of individual states, but the country as a whole.”
He also noted that based on the recommendations of the 15th Finance Commission, the share of states in the divisible pool of central taxes was increased to 41 percent.
“However, over the last four years, only 33.16 percent of the Union’s gross tax revenue has in fact been distributed to states, contrary to this recommendation.
Meanwhile, states’ matching contribution to centrally sponsored schemes has continued to rise, which further strains the finances of states like Tamil Nadu,” Stalin said.
He also highlighted that on one hand, reduced tax devolution from the union government has impacted state finances whilehon the other, increased spending by states in implementing union government schemes has added to the financial burden.
“Hence, it would be just to raise the States’ share in central tax revenue to 50 percent. The government should consider this request seriously,” he said.
Stalin also said that the Swachh Ganga initiative has achieved remarkable success in restoring and improving the Ganga river.
“Rivers are the lifelines of our nation, so a similar scheme is needed to clean and rejuvenate important rivers in Tamil Nadu such as the Cauvery, Vaigai, and Thamirabarani, as well as other major rivers across the country. I therefore request that new schemes be announced for the Cauvery, Vaigai, and Thamirabarani rivers,” he said, adding, “For all these schemes, I also request that names be given in English, which serves as the link language among all states. The states can translate them into their respective regional languages.”
Stalin also stressed that Tamil Nadu will always contribute its best so that all people may prosper, all cultures may flourish, and India, in all its diversity, will remain a strong nation.
“Only when every state progresses independently, with its own unique identity, will a united and strong India stand tall in the world arena. Tamil Nadu will always stand steadfast in support of that vision,” he added.