The Tamil Nadu government should approach the Finance Commission if it wants a higher allocation from the taxes collected by the Central government, Union Finance Minister Nirmala Sitharaman told the media in Coimbatore on Thursday.
Responding to a question on the State’s allegations that it was not getting its due from the Centre from the GST collected, she said 50% of the GST collected went to the States and 50% to the Central government. From its share, the Central government gave 41% to the States.
The Finance Commission set a formula for the amount to be given to each State. The Tamil Nadu government was aware of it. If it required a higher allocation, it should approach the Finance Commission. A responsible (State) government should speak with responsibility, she said.
PM Vishwakarma
On the Tamil Nadu government not notifying the PM Vishwakarma scheme, Ms. Sitharaman said the scheme was not for promoting caste-based trades. It supported artisans and craftspeople of 18 trades. The Tamil Nadu government created obstacles to the Central government schemes reaching people fearing that the credit would go to the Centre.
Claiming that Hindi was taught at schools run by family members of some big people in politics in the State, she said there were MPs from the State who had approached her for admission for people of their constituencies to Kendriya Vidyalayas. This was hypocrisy, she alleged.
Regarding the Chennai Metro Rail project, the Union Minister said phase-I was launched in 2019 and implemented as a Central sector project. The State government proposed phase-II as a State sector project in 2018 and the Central government’s contribution would be ₹7,425 crore.
Further, ₹22,228 crore would come as equity and subordinate debt from the State government. And ₹33,593 crore would be loans from multilateral agencies. The Centre had negotiated with agencies for loans to the tune of ₹21,560 crore. The amount used so far was ₹5,880 crore. The Centre also said it would take up the project as a Central sector project later, if needed. The State government was not disclosing complete details. “Don’t blame us for not taking action,” she said.
GST on food items
Ms. Sitharaman also said the Group of Ministers (GoM) is studying the demands of the hotel industry regarding Goods and Services Tax (GST) on various food items.
When asked about the claims of one of the leading restaurant owners in Coimbatore on Wednesday that different food items, such as sweets, savouries, and bakery products served at a hotel attract different rates, the Finance Minister said the hotel owners’ association had also submitted its demands and these were studied by the GoM for the past year.
It had submitted its status report and would submit its recommendations, she said.
In the last seven years, all decisions, except one, taken at the GST Council had the consensus of the Ministers of all the States who participated.
Rahul’s comments
Ms. Sitharaman asked why the DMK was not questioning the Congress, its ally, on Leader of Opposition Rahul Gandhi’s remarks and meetings in the United States (U.S.).
“It was not clear if the Congress agreed and accepted the remarks made by Mr. Gandhi in the U.S. about the Sikhs in India. He was meeting people in the U.S. who were acting against the country. He had met a senator who had visited Pakistan Occupied Kashmir. Till five years ago, action was not taken on Congress leaders who had instigated attacks on Sikhs after the death of former Prime Minister Indira Gandhi,” she said.
It was unfortunate that the Leader of the Opposition was speaking in favour of people who acted against India, she said.
On the Manipur violence, Ms. Sitharaman asked how many Union Ministers had visited the State when there were clashes before 2014.
Home Minister Amit Shah had stayed in Manipur for three days, she added.
Published - September 13, 2024 12:25 am IST
