TN Budget 2022-23: When the GST compensation system is completed, tamil Nadu will lose Rs 20,000 crore. Finance minister PDR Palanivel Rajan said in the budget that despite tamil Nadu's share of 10 per cent in the nation's development, there was no adequate representation.

When the GST compensation system is completed, tamil Nadu will lose Rs 20,000 crore. Finance minister PDR Palanivel Rajan said in the budget that despite tamil Nadu's share of 10 per cent in the nation's development, there was no adequate representation.

Budget

Tamil Nadu Finance minister PDR Palanivel Rajan presented the financial statements for the year 2022-23 in the assembly today. He spoke:

VAT

When VAT was in force in tamil Nadu, the amount of tax revenue received by the State was not available after the implementation of GST tax revenue at present. In addition, the corona epidemic has affected revenue sources in all states.

Loss

Compensation to the states on the GST tax will be paid by the central government only till 30-06-2022 and thereafter. If the central government stops compensating for the GST tax, the state of tamil Nadu will lose Rs 20,000 crore.

Therefore, on behalf of the government of tamil Nadu, the central government will be urged to extend the payment of compensation for an additional 2 years.

No proper funding

Tamil Nadu accounts for 6.12% of the country's population. tamil Nadu accounts for 10% of GDP. However, the central government has not provided adequate representation to tamil Nadu. In the 15th Finance Commission, the financial allocation for tamil Nadu was just 4.079 per cent.

Funds are not enough

The 15th Finance Commission has set aside Rs 21,246 crore over the next five years as grants to local bodies. However, the 14th Finance Commission has set aside Rs 17,000 crore and the 15th Finance Committee has been earmarked as a deficit. 

Funds recommended by the 15th Finance Commission should be provided separately, not in conjunction with federal government programs or federal responsibility programs. This was stated by Finance minister Palanivel Rajan