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Tamil Nadu To Demand Fair Fund Allocation Through Assembly Resolution: Governor

Tamil Nadu to seek equitable fund share from Centre.

Tamil Nadu Governor Rajendra Arlekar on Thursday said the state government would take steps to secure what it described as a fair share of financial devolution from the Union government, including moving a resolution in the Legislative Assembly and pursuing legal remedies if necessary. Delivering his maiden address to the Assembly, the Governor said the government was committed to protecting the state's fiscal interests and ensuring that Tamil Nadu receives its rightful share of central funds.

Arlekar announced that the government would publish a report detailing what it alleges to be a discriminatory approach by the Centre in matters related to financial devolution. He said a resolution would be introduced in the Assembly demanding a larger share of tax revenues contributed by Tamil Nadu to the Union government. The Governor added that a special legal committee would be constituted to pursue the matter, including approaching the Supreme Court if required.

"The government will work diligently to press the Union government to safeguard Tamil Nadu's welfare, protect the state's rights and secure the schemes required for its development," Arlekar said. Chief Minister C. Joseph Vijay, Leader of Opposition Udhayanidhi Stalin and other members of the Assembly were present during the address.

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The Governor also referred to a memorandum submitted by the Chief Minister to Prime Minister Narendra Modi, highlighting several long-pending issues raised by the state government. These included concerns over the proposed Mekedatu dam project and matters relating to the welfare and rights of Tamil Nadu fishermen. He said the government would continue to pursue these issues with the Centre.

Commenting on the political landscape, Arlekar described the formation of the current government as a significant development in Tamil Nadu's history. He said the administration had introduced a model of shared power and governance that was unprecedented in the state's 74-year political journey, calling it a notable shift following the recent Assembly elections.

On the state's financial condition, the Governor cited a recently released White Paper that allegedly exposed fiscal mismanagement by the previous administration. He said Tamil Nadu's debt had nearly doubled over the last five years to around Rs 10 lakh crore, equivalent to 28.3 per cent of the Gross State Domestic Product. Arlekar also claimed that tax revenue had declined from 5.93 per cent to 5.40 per cent of GSDP due to leakages and corruption, while reaffirming that the government would continue to uphold long-standing state policy positions, including the two-language formula.

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