OPS cites slowdown, introduction of GST for fall in revenue growth

‘No State has taken up welfare schemes on the scale T.N. has’

AIADMK coordinator O. Panneerselvam on Thursday attributed economic slowdown and the introduction of Goods and Services (GST) Tax to the inadequate rate of growth in the State’s Own Tax Revenue (SOTR) in the last five years. Responding to the criticism levelled by the DMK government in the White Paper and the Budget on various aspects of the previous AIADMK regime’s handling of the economy during 2011-21, Mr. Panneerselvam issued a statement running to about 40 pages. In it, he said that after 2015-16, the implementation of the Fourteenth Finance Commission’s recommendations had led to the State losing ₹7,000 crore annually in real terms. Since 2016-17, the Central government, which had scrapped certain Centrally-sponsored schemes, also increased the State’s share from 60% to 75% in the schemes in general. “Considering the interest of people, we continued to implement the schemes which were dropped by the Centre,” he said, pointing out that this had caused an additional burden of ₹7,000 crore to the State.