'50% Relief Borne By States': MK Stalin Slams PM Modi Over Delayed GST Cuts

Tamil Nadu Chief Minister MK Stalin has criticized Prime Minister Narendra Modi regarding the timing of Goods and Services Tax (GST) reductions, claiming that the central government is withholding rightful funds from states. In a pointed statement, Stalin accused the Centre of ignoring long-standing Opposition calls for tax relief while penalizing states like Tamil Nadu for standing against "Hindi imposition."

"Prime Minister Narendra Modi now claims Indians will save Rs 2.5 lakh crore through GST reform and Income Tax relief. However, this is precisely what the Opposition has been advocating from the very beginning," Stalin remarked. "Had these measures been implemented eight years ago, families nationwide would have already saved many lakh crores more."

Stalin highlighted that states shoulder half the financial burden of the tax relief yet receive no acknowledgment. "50 percent of this relief has actually been borne by the state governments, a fact which the Union has failed to recognize and appreciate. Instead, the Union BJP Government is denying funds that legitimately belong to the states. Tamil Nadu is being denied Samagra Shiksha funds simply because we refuse to accept Hindi imposition. When will this unfair treatment end?" he questioned.

The Chief Minister called on the central government to honor federalism principles. "India cannot progress by penalizing states that defend their rights and advocate for their citizens. Respect federalism, disburse the funds, and allow people to benefit from what rightfully belongs to them," Stalin urged.

In response to these allegations, BJP spokesperson Narayanan Thirupathy dismissed Stalin's criticisms, suggesting the DMK leader lacks comprehension of taxation and economic reforms. "MK Stalin is uninformed about taxation and the economy. These reforms have only become possible now after the expansion of the tax base. Eight years ago, there were only 50 lakh assessees. Today we have one-and-a-half crore," Thirupathy stated.

He contended that GST reforms have actually benefited states. "The states' GST revenue has increased over time. It's also factual that states earned 50 percent more under higher GST," he emphasized.

Recently, Union Education Minister Dharmendra Pradhan reaffirmed that adherence to the New Education Policy (NEP) is necessary for releasing Samagra Shiksha funds. Tamil Nadu has subsequently approached the Supreme Court regarding this matter.