Have called on Hon'ble @nsitharaman today and requested her to release the pending dues, local body grants and to extend the GST compensation...

Tamil Nadu Chief Minister M.K. Stalin met Union Minister of Finance and Corporate Affairs Nirmala Sitharaman in New Delhi, submitting a detailed fiscal memorandum regarding the state legitimate economic demands. During the high-level meeting, Stalin formally requested the immediate disbursement of pending fiscal arrears, including substantial basic and performance-linked grants owed to urban and rural local bodies. He highlighted that timely release of central funds is essential for municipal corporations and village panchayats to sustain basic civic amenities.

The Chief Minister placed strong emphasis on the urgent requirement to extend the Goods and Services Tax compensation mechanism by at least two additional years beyond June 2022. Stalin explained that states experienced catastrophic revenue shortfalls due to the economic disruption caused by the COVID-19 pandemic, alongside structural losses inherent in the current indirect taxation structure. He argued that abruptly terminating GST compensation would severely cripple state fiscal capacities to finance vital public healthcare, education, and welfare expenditures.

Stalin expressed confidence that the Union Minister would appreciate the merits of the state representations and act expeditiously. He reaffirmed that fiscal autonomy and equitable revenue-sharing between the Centre and states form the bedrock of cooperative federalism.