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

Tamil Nadu Chief Minister MK Stalin on Monday took on Prime Minister Narendra Modi over the timing of the Goods and Services Tax (GST) cuts, accusing the Union government of denying states their rightful funds. In a strongly worded statement, Mr Stalin said the Centre had ignored long-standing Opposition demands for tax relief and was punishing states like Tamil Nadu for resisting "Hindi imposition."

"Prime Minister Narendra Modi now says Indians will save Rs 2.5 lakh crore through GST reform and Income Tax relief. But this is exactly what the Opposition has been demanding from the very beginning," Mr Stalin said. "If these measures had been taken eight years ago, families across the country would already have saved many lakh crores more."

He added that states bear half the burden of the relief but receive no recognition. "50 per cent of this relief has been actually borne by the state governments, a fact which the Union has failed to acknowledge as well as appreciate. On the contrary, the Union BJP Government is denying funds that rightfully belong to the states. Tamil Nadu is being denied Samagra Shiksha funds only because we refuse to accept Hindi imposition. When will this injustice end?" he asked.

The Chief Minister also urged the Centre to respect federalism. "India cannot grow by punishing states that defend their rights and stand for their people. Respect federalism, release the funds, and let the people benefit from what is rightfully theirs," Mr Stalin said.

Responding to the attack, BJP spokesperson Narayanan Thirupathy dismissed Mr Stalin's criticism, saying the DMK leader lacked understanding of taxation and economic reforms. "MK Stalin is unaware of taxation and the economy. Reforms have happened only now because they were possible after the tax base expanded. Eight years ago, there were only 50 lakh assessees. Today we have one-and-a-half crore," Thirupathy said.

He argued that GST reforms have, in fact, benefited states. "The states' GST revenue has increased over time. It is also true that states earned 50 per cent more under higher GST," he pointed out.

A few days ago, Union Education Minister Dharmendra Pradhan reiterated that compliance with the New Education Policy (NEP) is a must for the release of funds for Samagra Shiksha. The state has also moved the top court on this.