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In pre-union budget meeting, TN Finance Minister Thangam Thennarasu seeks funding for Chennai Metro Rail, flood relief
Pre-budget deliberations: Tamil Nadu Finance Minister Thangam Thennarasu with Union Finance Minister Nirmala Sitharaman in New Delhi on Saturday. | Photo credit: Special Arrangement
Tamil Nadu Finance Minister Thangam Thennarasu sought funds for the Chennai Metro Rail Limited Phase 2 project and flood relief, among a host of other requests, at the pre-Union Budget consultation in New Delhi on Saturday.
Union Finance Minister Nirmala Sitharaman chaired the meeting with Finance Ministers of States and Union Territories to receive suggestions for the Union Budget 2024-25.
Thennarasu, in his speech, said that the Metro Phase 2 project, at a cost of ₹63,246 crore, was recommended by the Public Investment Board (PIB) on August 17, 2021, but is awaiting approval from the Cabinet Committee in Economic Affairs (CCEA) in the last three years. Because of this, all expenses were borne by the State. The delay is seriously affecting the State’s finances and affecting the pace of project implementation, he added.
The Minister urged the Center to immediately sanction the project as originally envisaged and ensure that adequate provisions were made in the Union Budget 2024-25 for the same.
He further said that Tamil Nadu witnessed two huge natural disasters in quick succession last year, causing significant strain on the State’s finances. Although the State submitted two detailed memorandums describing the extent and magnitude of the disasters and seeking humanitarian assistance of around Rs 37,906 crore, the Center released only a small amount of Rs 276 crore, he added.
He implored the Union government to release adequate funds for disaster-affected States and allocate an amount of ₹3,000 crore to Tamil Nadu in the next budget for restoration works.
It also requested the Center to merge the taxes and surcharges into basic rates of taxation so that the States receive their rightful share of the refund. Mr. Thennarasu highlighted that the Union government has progressively transferred the burden of Centrally Sponsored Schemes (CSS) to the state governments. The Center should increase unit costs to reflect current needs and contribute at least a 50% effective share to the CSS. “I will also urge the Union government not to adopt a one-size-fits-all approach or impose restrictive conditions on the release of funds for the schemes,” he added.
The Center sets the maximum net debt limit of States at three per cent of the State’s Gross Domestic Product (GDP) every year. The GDPP calculated for Tamil Nadu for this purpose has been repeatedly underestimated, resulting in a loss of borrowing space of around Rs 8,500 crore in the last four years, he highlighted.
Thennarasu said Tamil Nadu was getting motherly treatment in sanctioning large-scale infrastructure projects.
He sought sanction for railway projects in the Union Budget.
He also demanded more national highway projects in the state and said construction of elevated roads between Tambaram and Chengalpattu, and Chengalpattu and Tindivanam should be a priority. The stretch on the Chennai – Kanniyakumari Corridor was developed as a four-lane highway by NHAI during 2005. Currently, the traffic intensity has increased manifold and the stretch has become vulnerable to road accidents causing deaths.