Chennai: The failure of the previous AIDMK regime to hold local agencies in Tamil Nadu very well.
Overall, the state lost Rs 2,577.29 Crore central grant in the financial year 2017-18, 2018-19 and 2019-20, according to white paper released by the Minister of Finance Palanivel Thiagarajan on Monday.
Grant, even recommended by the Finance Commission, not released in time for various reasons.
“Not releasing most of the grants to the local agency recommended by the 14th Finance Commission in three fiscal years because the failure to hold local agencies in time is the right case,” Thiagarajan said.
Going with the recommendation of the fifth state financial commission, 10% of Neto state tax revenues themselves are being charged with the local body.
This was distributed by rural and urban local bodies in a 56:44 ratio.
Apart from the large devolution, the local body has not paid electricity and water available from the Tangedco board and Twad (water supply and water drainage of Tamil Nadu).
Electricity costs circulating from local bodies stand at Rs 1,259 Crore, while water costs at Rs 484.1 Crore.
Do not pay contributions to the Tangedco and Twad boards create a weaker local body demon cycle placing additional pressure on the status of non-functional PSU / board / boards, which ultimately creates further obligations for institutions that hold stake and state governments, said Minister of Finance.
TN loses Rs 2,577 Crore Center Grant
