The Hindu : PMK seeks Rs. 3,000 crores as one-time grant

Online edition of India's National Newspaper
Tuesday, Feb 03, 2004

Tamil Nadu

Tamil Nadu

PMK seeks Rs. 3,000 crores as one-time grant

By Our Special Correspondent

CHENNAI, FEB. 2. The Pattali Makkal Katchi (PMK) has urged the Twelfth Finance Commission (TFC) to evolve a one-time assistance package for all States to enable them to overcome the financial crisis.

In its recommendations submitted to the TFC chairman, C. Rangarajan, the party wanted Tamil Nadu given Rs. 3,000 crores as a one-time grant. Tamil Nadu was third among the States most likely to be affected by the recommendations of the Eleventh Finance Commission, it said.

While the loss of revenue was about Rs.4,036.12 crores, it would be able to receive an assistance of only about Rs.402 crores from the Incentive Fund suggested by the Eleventh Finance Commission to compensate the loss. "This reduced amount would be inadequate to a State, which has performed extremely well in resource mobilisation and implementation of anti-poverty schemes."

On calamity relief, the party suggested that the States badly affected by natural calamity successively for three years be exempted from contribution to the calamity relief fund of the Centre. Also, there was need for redefining calamity. As Karnataka was "recalcitrant" to share Cauvery water, the problem of drought in Tamil Nadu was compounded. The State should be assisted from the National Fund for Calamity relief.

The TFC should keep in view the overall macro-economic stability and streamline management of government debt. It should provide for appropriate incentives for inducing fiscal responsibility.

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