The Hindu : Tamil Nadu News : Raise your voice for State's rights, Ponnaiyan asks DMK

Online edition of India's National Newspaper
Wednesday, Apr 13, 2005

Tamil Nadu

Tamil Nadu

Raise your voice for State's rights, Ponnaiyan asks DMK

By Our Special Correspondent

CHENNAI, APRIL 12. The Finance Minister, C. Ponnaiyan, today appealed to the Opposition, particularly the Dravida Munnetra Kazhagam, to raise its voice for protecting the State's interests in getting Central allocations.

Replying to the debate on the Appropriation Bill, he told the Assembly that the State was being given a raw deal in the allocation of funds. Though the Twelfth Finance Commission had recommended an increase in the total share of all States in the divisible pool of Central Taxes from 29.5 to 30.5 per cent, it asked the States to raise the 70 per cent loan component of the plan assistance from the open market.

Even while recommending substantial deficit grants to 15 States, it left out developed States such as Tamil Nadu. Discretionary grants to the tune of Rs. 10,171.65 crores were distributed to eight States including Assam, Bihar, Rajasthan and West Bengal. The Centre also earmarked Rs. 5,887.08 crores to some other States as grants-in-aid for maintenance of health services. Tamil Nadu did not get any share under these heads either, he said.

Grave injustice was done to the State in the allocation of funds, Mr. Ponnaiyan said. The DMK, which had been saying that it followed the path of the late Chief Minister, C.N. Annadurai, should raise its voice to safeguard the State's rights.

`We too faced problems'

Responding to the Minister's appeal, Arcot N. Veerasamy (DMK) said the previous DMK Government also faced similar problems. "We had taken up the issue with the Centre then, as you are raising it now. The State should be united on such issues."

The deputy leader of the DMK, Durai Murugan, said the Minister presented a tax-free budget, thanks to factors such as the Centre's decision to accept the Twelfth Finance Commission's recommendation to consolidate all loans drawn till March 31, 2004 and outstandings from the State to the Centre as on March 31, 2005 as a new loan and make it repayable in 20 years at an interest of 7.5 per cent instead of at 13.5 per cent per annum.

The leader of the Congress Legislature Party, S.R. Balasubramoniyan, urged the Government to protect local industries even while extending concessions to multi-nationals to attract foreign direct investment.

The members of the Communist Party of India and the Communist Party of India (Marxist) pleaded for activating the welfare board for the farm workers. The House passed the Appropriation Bill after discussions.

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