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13k cr from Centre can fund 90% of revenue deficit

CHENNAI: At least 90% of the state’s revenue deficit can also be funded if the Centre pays up the ₹13,000-crore due it owes to Tamil Nadu underneath more than a few heads corresponding to necessary devolution of funds to local bodies, Sarva Shiksha Abhiyan, IGST and GST compensation.

Deputy leader minister O Panneerselvam, in his finances speech on Friday, pointed to the problem of pending dues from the Union government hampering the finances of the state government.

According to finance department resources, huge sums of money owed through the Centre to the state is stuck in procedural wrangles. “The state is but to receive its due share of IGST to the track of ₹5,454 crore as well as the assured GST compensation of ₹455.16 crore for 2017-2018.”

Under the varsity education head, in keeping with deputy leader minister Panneerselvam, the federal government of India was but to unencumber long pending arrears to the track of ₹2,109.08 crore underneath Sarva Shiksha Abhiyan (SSA) and ₹1,092.22 crore underneath Rashtriya Madhyamik Shiksha Abhiyan (RMSA) — schemes which might be these days being funded solely through the state government.

Similarly, underneath the head of local bodies, the state government must have got ₹three,852.17 crore from the Centre as basic and performance grant final yr.

‘TN hasn’t got per 30 days support like others’

“Of the whole IGST dues pending from the Centre, 5,909 crore is for the final financial yr. To unencumber this fund, the Centre should have moved an appropriation bill within the finances.TN is without doubt one of the few states dealing with the IGST drawback as maximum of our products are being offered in different states. It crosses several states sooner than it reaches the consumption state,” a senior legit said.

The state government is hopeful of having just 40% of the 5,909 crore, provided the Centre strikes the appropriation bill. From the amount mentioned within the finances, the Centre would deduct the compensation launched to the state for decrease tax revenue enlargement final yr. “Tamil Nadu has now not received compensation each month like different states. Tamil Nadu alone appears to be dealing with this drawback,” said the legit. One of the reasons for the prolong in getting funds for local bodies is prolong in preserving elections to those bodies.

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