Tamil Nadu to follow Jayalalithaa's path of development , says Governor

Tamil Nadu has been unjustly denied its due share of central tax devolution, says Governor

Strengthening infrastructure to accelerate economic growth has been the bedrock of the late Chief Minister J Jayalalithaa’s public policy, said Tamil Nadu Governor Vidyasagar Rao.

 

He said that Tamil Nadu will focus on equity and inclusive development through the welfare schemes.

 

Addressing the state assembly today, he said that the new government will continue to progress in the path laid out by Jayalalithaa to keep up the high momentum of development in the state, emphasising on five state missions, unveiled by the deceased chief minister, which addresses the critical issues of water resource management, housing for the poor, poverty reduction, skill development and public sanitation.

 

Speaking about issues which are affecting the state due to Centre's policy, the Governor said: "Tamil Nadu has been unjustly denied its due share of central tax devolution by the Fourteenth Finance Commission, which had reduced the earlier inter-se share of Tamil Nadu by 19.04 per cent, the highest loss suffered by any State in the country. 

 

The state asked Centre to consider the request of the State to treat Tamil Nadu as a special case by providing an annual Grant of Rs 2,000 crore during the award period in order to mitigate the impact of reduced devolution.

 

Centre’s decision of demonetisation of the Specified Bank Notes (SBN) will bring a long term dividend to the economy, although its short-term negative impact, particularly on the informal sector, farmers and small traders may last longer than expected.  The impact of demonetisation has been particularly severe on the resources of the States as tax revenue collections have slowed down in the last few months.  Tamil Nadu has requested the Modi government to increase its share on Centrally Sponsored Schemes from 60 per cent to 90 per cent for the next two years.

 

Tamil Nadu requested Centre to ensure that the present level of Central transfers after appropriate adjustment for normal growth will be maintained even after the implementation of GST.