Tamil Nadu gets Rs. 901.75 crores as Rural Local Body Grants From Ministry of Finance
Tamil Nadu has gained second place in the list of most infected states in India with 48,000 infected people. Chennai, the state’s capital, and its adjacent districts hold the largest share of infection in the state, while the rural parts hardly have any high number of infections. Now, the Finance Ministry of India has pushed out Rs. 901.75 crores for the economical restart of rural local bodies of Tamil Nadu.
On June 17, the Finance Minister of the Indian Government tweeted that these grants could help the rural part of the nation to fight the pandemic and restart the economic activities.
On Wednesday, based on the Fifteenth Financial Commission’s suggestion, the Finance Ministry has approved the release of Rs. 15,187.50 crores to 28 states for reinstating their economic activities.
The Ministry stated that this grant as the first installment of Rural Local Bodies Basic Grants for the year 2020-2021. Also, to ensure the amount to be credited in the bank accounts of the state government at soonest, the Department of Expenditures ordered the Finance Departments of the States to transfer the amount to the state government within ten working days. If failed, the state’s finance departments are responsible for paying the amount with interest, said the statement released by the Ministry of Finance.
While Tamil Nadu gets only 901.75 crores for the restoration of its rural economy, Uttar Pradesh gets the highest payout of 2438.00 crores. Maharashtra gets 1456.75 crores, Bihar gets 1245.50 crores, and West Bengal gets 1103.00 crores. Tamil Nadu stands at the seventh place to get the highest amount, which is only next to Madhya Pradesh and Rajasthan.
On Wednesday, Chief Minister of Tamil Nadu, Edappadi K Palaniswami, in a video conference with Prime Minister, requested the central to release the GST amount share of the state, which should have been released back in March.
At the conference, Edappadi Palaniswami also asked the PM to grant Rs. Three thousand crores to afford medical equipment for the state. He also requested Rs. One thousand crores for the state from the National Disaster Relief Fund along with another Rs. One thousand crores for the Tamil Nadu Industrial Investment Corporation Limited.
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