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Rediff.com  » Business » Performing states not getting due share: Karunanidhi

Performing states not getting due share: Karunanidhi

Source: PTI
June 04, 2009 14:20 IST
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Tamil Nadu chief minister M Karunanidhi said on Thursday that 'performing states' like Tamil Nadu have not been receiving their 'due share' from successive finance commissions, who, he alleged, gave more importance to backward states.

Speaking at a meeting with officials of the 13th Finance Commission, headed by Vijay Kelkar, he said "we feel that performing states like Tamil Nadu have not been receiving their due share. Successive finance commissions have given more importance to backward states, ignoring the needs of performing states."

This was evident from the fact that Tamil Nadu's share in the tax devolution has come down from 7.9 per cent in the past to 5.3 per cent now, he said.

"Also we feel the state's share in central taxes is the most transparent method of transfer. This should be increased to 50 per cent and reduce discretionary grants," he said.

He called for more allocation to the state from the Central Relief Fund, 'considering the natural calamities,' the compensation for which, especially crop loss, needed to be substantially increased.

He also asked the commission to consider the state's needs in promoting clean energy and slum improvement, among others.

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