The Tamil Nadu government on Wednesday requested Union finance minister Nirmala Sitharaman to recommend release of Rs 6,374.69 crore performance and basic grants pending for the last two years. The government also requested the Centre to reduce the GST rate on machined job order items from 12% to 5%, which will benefit many micro and small-scale industries. Municipal administration and water supply minister S P Velumani said the amount of Rs 2,029.22 crore was pending towards the performance grant for the years 2017-2018 to 2019-2020 and Rs 4,345.57 crore towards basic grant grants for the year 2019-20 under the 14th Finance Commission recommendations.
“This fund release would greatly benefit the state in providing the basic amenities, such as water supply, sanitation, waste management, street lights and also to settle various utility bills of the urban local bodies,” Velumani said in a memorandum submitted to the Union minister. Pointing to the “progress made in election process like publishing of delimitation notification and reservation of seats and offices, and in the context of the state election commission’s affidavit before the Supreme Court that the notification announcing the schedule of the election would be published in the last week of October,” the minister requested Nirmala to release the funds.