Tamil Nadu chief minister M.K. Stalin kept up his push for cooperative federalism at the Niti Aayog governing council meeting on Saturday, and joined Jharkhand’s Hemant Soren in seeking a 50 per cent share in central tax revenues for the states.
Bengal chief minister Mamata Banerjee, Kerala’s Pinarayi Vijayan and Karnataka’s Siddaramaiah skipped the meeting.
Earlier on Saturday, Congress spokesperson Jairam Ramesh wrote a scathing post on X, alleging the meeting’s focus on the Centre’s Viksit Bharat plans reeked of hypocrisy when the ruling establishment was subverting social harmony and destroying institutions.
In his speech, Stalin said: “Cooperative federalism is the foundational principle in realising this goal ($30-trillion economy by 2047). Therefore, I urge the Union government to extend its support without discrimination so that Tamil Nadu and other states can achieve their developmental targets.”
He reiterated how the withholding of ₹2,200 crore worth of Samagra Shiksha Abhiyan funds to Tamil Nadu, for not agreeing to the National Education Policy, was harming poor students.
“It is not ideal for the cooperative federal structure of India that states should constantly have to fight, argue, and approach courts to receive their rightful share of funding,” Stalin said.
“Based on the recommendations of the 15th Finance Commission, the share of states in the divisible pool of central taxes was increased to 41 per cent. However, over the last four years, only 33.16 per cent of the Union’s gross tax revenue has, in fact, been distributed to states, contrary to this recommendation.”
Stalin added: “On one hand, reduced tax devolution from the Union government has impacted state finances. On the other, increased spending by states in implementing Union government schemes has added to the financial burden. Hence, it would be just to raise the states’ share in central tax revenue to 50 per cent.”
Soren too demanded half the central taxes. “After the implementation of the GST Act from the year 2017, for a manufacturing state like Jharkhand, the revenue collection from the earlier VAT has been adversely affected,” he said.
“For the initial five years, the state has received compensation amount as per 14 per cent protected revenue. Due to non-receipt of amount since June 2022, the state is incurring revenue loss of thousands of crores.”
Both Stalin and Telangana chief minister A. Revanth Reddy pressed for central assistance towards urbanisation.
Reddy said: “Mumbai, Delhi, Bengaluru, Kolkata, Chennai and Hyderabad… together accounting for a major share of India’s urban GDP, serve as critical engines of economic growth, innovation and job creation.
“For instance, Mumbai and Delhi contribute ₹25.8 lakh crore and ₹24.5 lakh crore, respectively, while Hyderabad — despite its smaller size — already contributes nearly 2.5 per cent of the national GDP.
“These mega-cities are not just economic centres but hubs of talent, investment and technological advancement. To harness their full potential, there is a pressing need to establish a national-level task force under the leadership of the Hon’ble Prime Minister and the respective chief ministers.”
Congress attack
Ramesh, in his post, said: “What sort of Viksit Bharat will it be if those in power themselves destroy the bonds of social harmony by their malicious words and deeds?
“What sort of Viksit Bharat will it be if those in power subvert Parliament, judiciary, universities, media, and Constitutional and statutory authorities to fulfil their nefarious goals?
“What sort of Viksit Bharat will it be if the values that India has always stood for are systematically assaulted in full glare of the world?
“What sort of Viksit Bharat will it be with sharpening economic disparities and inequalities even as wealth continues to accumulate in the hands of a few?
“What sort of Viksit Bharat will it be if India’s glorious diversities are deliberately sought to be insulted and erased?
“What sort of Viksit Bharat is it where not only is freedom of speech under threat but freedom after speech is also endangered?
“Today’s meeting of the NITI Aayog — an ayogya (inept) body if ever there was one — is yet another exercise in hypocrisy and diversion.”