Tamil Nadu Chief Minister MK Stalin on Sunday accused the Bharatiya Janata Party-led Union government of “deliberately and artificially” creating financial stress for the state by withholding funds even for centrally-sponsored schemes, PTI reported.
Speaking at an event organised in Chennai, Stalin said Tamil Nadu’s finances were under sustained pressure because of cuts in tax devolution, delays in fund releases and changes in the Goods and Services Tax regime, The News Minute reported.
“Income is falling and expenditure is rising,” the news outlet quoted him as saying. “This financial crisis is being created deliberately. Yet, we are overcoming this politically and administratively while still fulfilling the demands of government employees.”
Referring to demands for the restoration of the Old Pension Scheme, Stalin said that the scheme had been withdrawn during the previous All India Anna Dravida Munnetra Kazhagam government and that the matter had been pending for more than two decades, The News Minute reported.
“The decision caused immense suffering to hardworking employees,” the news outlet quoted him as saying.
He added that his government introduced the Tamil Nadu Assured Pension Scheme to prioritise the welfare of government employees, The News Minute reported. The scheme had sought a balance in employee welfare with long-term fiscal sustainability, he said.
Under the scheme, government employees are assured a pension equal to 50% of their last drawn salary, with employees contributing 10% of their salary and the government contributing the remaining share.
Stalin said the scheme would require an additional Rs 13,000 crore to be added to the pension fund and an annual state contribution of about Rs 11,000 crore, which would rise over time.
“Despite severe fiscal constraints, the Tamil Nadu government will bear the full cost to safeguard the welfare of employees and teachers,” The News Minute quoted him as saying.
Stalin has for long accused the Union government of withholding funds as a tactic to coerce states to adopt centrally-mandated programmes.
You’ve read Scroll.
Now help sustain it
Scroll is funded by readers, not corporate owners. If you believe our work matters, support our newsroom. Become a member today!
We’re not driven by clicks or corporate interests – just honest, independent reporting. Keep us going. Support Scroll today!