Tamil Nadu floods: Union govt not hostile to TN on funds flow says Sitharaman; TN all-party MP team to meet Shah

The all-party MP team hopes to prevail upon the Union government to disburse the sum requested by the state, MK Stalin said.

Published Jan 05, 2024 | 12:49 PMUpdated Jan 05, 2024 | 12:49 PM

Nirmala Sitharaman speaking to the media. (Screengrab)

The Union government was never hostile towards Tamil Nadu, Kerala or any other state on ensuring funds flow and had made advance payments and even released funds to foster infrastructure development, Union Finance Minister Nirmala Sitharaman said on Thursday, 4 January.

Responding to a criticism from the DMK government that the Union government was not disbursing funds or settling its share, she said that from 2014 to 2023 the Union government received ₹6.23 lakh crore as direct tax (income tax and corporate tax) from Tamil Nadu but gave back ₹6.96 lakh crore to the state during the same period.

“I will get the update on the current figures only in March. But as per the available statistics, from 2014 till 2022-23, Tamil Nadu’s direct tax collection was ₹6.23 lakh crore. But we gave ₹6.96 lakh crore to the state,” she said while speaking at the Viksit Bharat Sankalp Yatra programme.

“It is a wrong assumption that this ₹6.23 lakh crore is paid only by the people of Tamil Nadu. Among them were Hindi-speaking tax assessees,” the Finance Minister said.

She had to set the record straight as there has been a misinformation campaign that the BJP-led Union government was not prompt in releasing funds to states, Sitharaman said.

Related: Nirmala Sitharaman to visit flood-ravaged Thoothukudi district

Gave additional funds too: FM

“You are asking to give back your tax money. The Centre has been giving back the cess, tax or even the GST collected from Tamil Nadu and in addition providing additional funds,” Sitharaman said.

Post-Covid, going beyond the Finance Commission’s recommendations, Prime Minister Narendra Modi had asked her Ministry to provide special capital assistance to the states to foster their infrastructure development, she noted.

The Modi government has settled dues amounting to about ₹81,645 crore pending since 1996-97 to all states and Tamil Nadu’s share in it was ₹3,225 crore.

The money obtained as cess and surcharge were also given back to the state for the construction of schools and roads, Pradhan Mantri Awas Yojana (Rural) and Gram Sadak Yojana. About ₹57,557 crore was obtained by way of cess and surcharge from Tamil Nadu from 2014 till date.

Of the sum, ₹37,965 crore was disbursed to construct NHAI roads, ₹11,116 crore from education cess for the Samagra Shiksha overarching programme for school education, ₹4,839 crore for PMAY, ₹3,637 crore for the rural roads scheme in the state.

Of the ₹36,353.12 crore collected as GST from Tamil Nadu in 2022-23, the Union government released the entire sum to the state and in addition provided 41 percent from the ₹27,360 crore CGST collection. “We have given the GST entirely to the state governments without discrimination,” she added.

Related: CM Stalin seeks ₹2,000 crore interim relief

‘Centre not hostile to any state’

“You are blaming the Centre is not giving funds. The Finance Commission decides on the sum to be given to each state. The Centre is not hostile to Tamil Nadu, Kerala or any state and does not retain the sum due for them. The amount is disbursed on a monthly basis and in certain cases, advance payment is made during festivals,” she said.

As the minister concluded her speech, a woman who had come to attend the function, sought to know if she would get the flood relief sum. Immediately Sitharaman replied “You will get it. We will look into your case if you provide us the details.”

The Finance Minister handed over cheques to beneficiaries under various central government schemes such as Mudra Yojana, Stand up India, and PM SVANidhi, at the event.

Related: South TN rains not a national calamity, says Nirmala Sitharaman

MPs to meet Home Minister 

Meanwhile, a delegation of MPs from Tamil Nadu has sought an appointment with Union Home Minister Amit Shah to request the immediate disbursal of ₹37,907.19 crore as flood relief to the state, Chief Minister MK Stalin said on Thursday.

The all-party MP team hopes to prevail upon the Centre to disburse the sum requested by the state government, he said.

Following two major rain-related calamities in December 2023, the state government had sought the relief to restore the public infrastructure in the flood-affected districts besides extending livelihood support to the affected people.

“The state government has already demanded a total of ₹ 37,907.19 crore as relief, including ₹ 19,692.67 crore for relief and restoration work in Chennai, Chengalpattu, Kancheepuram, and Tiruvallur districts affected by Cyclone Michaung and ₹18,214.52 crore for relief works in Thoothukudi, Tirunelveli, Kanniyakumari, and Tenkasi districts,” the Chief Minister said in a statement in Chennai.

While Chennai and its suburbs were ravaged by the cyclone on 3 and 4 December, the four southern districts were severely inundated by unprecedented rain on 17 and 18 December.

He said that the state government had already spent ₹2,100 crore so far for rescue and relief operations in the rain-hit areas. Stalin mentioned that he had already announced a ₹1,000 crore relief package including assistance for the reconstruction or repair of houses, and loans to MSMEs, SHGs, small traders and vendors affected due to the rains in the southern districts.

“It is significant to note that the Centre promptly provided relief to other states that suffered similar natural calamities,” the Chief Minister said.

Related: Sitharaman insulted TN people in the grip of calamity, says DMK

Minister Udhayanidhi meets PM

Tamil Nadu Minister and DMK leader Udhayanidhi Stalin on Thursday met Prime Minister Narendra Modi in New Delhi and invited him for the opening ceremony of the Khelo India Youth Games slated to be held in Chennai later this month.

The TN Sports Minister said he requested the Prime Minister to release the National Disaster Relief Fund for the flood-affected districts of his state.

The DMK Youth Wing leader, in a post on the social media platform X, shared pictures of his meeting with the Prime Minister in the national capital.

He said that he was glad to have invited Modi for the opening ceremony of the Khelo India Youth Games to be held in Chennai on 19 January.

“On behalf of the Tamil Nadu government, I requested the Prime Minister for the immediate release of National Disaster Relief Fund to undertake comprehensive relief, restoration and rehabilitation works in flood-affected districts of TN as requested by our Hon’ble Chief Minister @mkstalin. The Prime Minister assured us that he would take the necessary steps,” he said.

Udhayanidhi said he also discussed various subjects of public importance to Tamil Nadu, particularly the multi-faceted development of sports, with the Prime Minister.

“During the meeting, I also presented to the PM a coffee table book showcasing the successful conduct of CM Trophy Games 2023 and the Asian Men’s Hockey Championship hosted by Tamil Nadu.”

“Khelo India Youth Games 2023 would be another promising opportunity to demonstrate Tamil Nadu’s enviable organising capability and illustrious history in the field of sports,” he added.

Meets Rahul Gandhi

He also met Congress leader Rahul Gandhi, whom he referred to as “brother” and briefly discussed “the progress of the INDIA alliance in safeguarding the secular ethos of the nation”.

During his meeting with Rahul Gandhi, Udhayanidhi enquired about the health of his mother Sonia Gandhi.

“I was delighted to meet @INCIndia leader brother Thiru Rahul Gandhi at his residence in New Delhi today. I inquired about the health of Annai Sonia Gandhi. @RahulGandhi expressed his concern about the recent floods in Tamil Nadu. We briefly discussed the progress of #INDIA alliance to safeguard the secular ethos of the nation,” he wrote on X.

(Disclaimer: The headline, subheads, and intro of this report along with the photos may have been reworked by South First. The rest of the content is from a syndicated feed, and has been edited for style.)

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