Stalin urges Centre to release pending Samagra Shiksha funds, demands 50% share to States in divisible pool of central taxes

The Hindu

24-05-2025

Tamil Nadu Chief Minister M.K. Stalin on Saturday urged the Centre to release, without imposing unilateral conditions or further delays, the pending funds under the Samagra Shiksha scheme and increase the share of States in the divisible pool of Central taxes to 50%. He made these appeals while addressing the 10th Governing Council meeting of NITI Aayog, chaired by Prime Minister Narendra Modi in New Delhi.
Mr. Stalin said funds for the Samagra Shiksha scheme had not been disbursed to some States, including Tamil Nadu, because they had not signed the memorandum of understanding (MoU) with the Centre for implementing the PM Schools for Rising India (PM SHRI) scheme. 'Withholding of funds by the Centre to the tune of ₹2,200 crore for Tamil Nadu impacts the education of children studying in government schools and under the Right to Education Act,' he said.
'It is not ideal in a cooperative federal structure, that States should constantly have to fight, argue and approach courts to receive their rightful share of funds. This not only affects the growth of individual States, but the country as a whole,' Mr. Stalin said.
Highlighting the financial strain on State governments, he said, based on the recommendations of the 15th Finance Commission, the share of States in the divisible pool of central taxes was increased to 41 percent. However, over the last four years, only 33.16% of the Union's gross tax revenue had been distributed to States, contrary to the Finance Commission's recommendation, he said.
'On one hand, reduced tax devolution from the Centre has impacted States' finances and on the other, increased spending by States in implementing Union government schemes has added to their financial burden,' Mr. Stalin said, urging the Union government to raise the share of States in the divisible pool of Central taxes to 50 per cent.
He said the long-term vision of the Tamil Nadu government was to achieve inclusive and sustainable economic growth founded on equality and social justice. 'This goal of 'everything for everyone' is what we call the Dravidian Model. Our government has been actively working towards achieving the target of transforming Tamil Nadu into a $1 trillion economy by 2030. The results of our efforts are reflected in various key economic indicators,' he said.
The Chief Minister said Tamil Nadu had been consistently recording an annual growth rate of 8% for the past few years. Last year, the State recorded a growth rate of 9.69%, highest in the country, he said adding that the State was working relentlessly towards an ambitious goal of becoming a $ 4.5 trillion economy by 2047, the centenary of India's independence. 'I assure you that Tamil Nadu will be a significant contributor to India's target of a $30 trillion economy by 2047,' he said.
Urban renaissance
'Our responsibility is to provide the growing urban population with fundamental amenities, robust infrastructure and a high quality of life. A major scheme with substantial funding is necessary for the development of urban centres in our country. The AMRUT 2.0 scheme is nearing completion. At this juncture, there is an urgent need for a new urban renaissance scheme focusing on quality infrastructure, efficient mobility, and sanitation,' he said.
Mr. Stalin also noted that the Clean Ganga initiative had achieved remarkable success in restoring the river. Similar initiatives were needed to clean and rejuvenate major rivers in Tamil Nadu such as the Cauvery, Vaigai and Thamirabarani, as well as other major rivers across the country. The names of such initiatives should be in English for national coherence and regional pride. The respective States could translate the names of such schemes into their regional languages, he said.
'Tamil Nadu will always contribute its best so that all people may prosper, all cultures may flourish and India, in all its diversity, will remain a strong nation. Only when every State progresses independently, with its own unique identity, will a united and strong India stand tall in the world arena. Tamil Nadu will always stand steadfast in support of that vision,' he assured.