Year when Tamil Nadu had change of heart mid-fight

CHENNAI: Tamil Nadu used to be at the forefront in opposing new schemes or projects proposed by the Centre that may have gone against the state's interests. Starting from the National Food Security Act to NEET, late chief minister J Jayalalithaa was steadfast in opposing them unless her arguments for amendments were heard.

But, things began to change even as Jayalalithaa was hospitalised. Her government led by O Panneerselvam accepted the Food Security Act at an additional cost of Rs 3,000 crore per annum for implementing universal PDS in the state. All other schemes seemed to fall in place for the Centre without a protest post-Jayalalithaa with her successors insisting that the attitude ensured better relations with the Centre.

Jayalalithaa opposed GST on several counts and did not want a powerful GST Council. "GST Council as a constitutional body impinges on the legislative sovereignty of both the Parliament and the state legislatures and completely jeopardises the autonomy of the states in fiscal matters," Jayalalithaa had said in a memorandum to Prime Minister Narendra Modi last June.

On the Uday scheme too, she wanted relief on revising the tariff every quarter and also relief for 10 years in having fiscal deficit above 3% as per the Fiscal Responsibility and Budget Management Act (FRBM Act). The state did not join the scheme. But after Jayalalithaa's death, even though the Centre only agreed on the tariff revision, Tamil Nadu joined the scheme. The result was a fiscal deficit of above 4%.

"The only relief which Tamil Nadu has got from the Centre on GST was keeping petrol and alcohol away from GST. Though we wanted 4% more for states like TN, Centre not only refused to accept it but also scrapped the additional 1% tax for some states," a Chennai-based economist told TOI.

Jayalalithaa did not cooperate on the Port-Maduravoyal project in 2012, but earlier this year, the state agreed to revive the project after alleged pressure from the Centre. "AIADMK has not changed from the style of Amma's functioning. She never opposed the schemes but sought changes and after getting the said changes we are implementing the schemes," said a senior AIADMK leader.

But analysts say the AIADMK government has surrendered to the Centre. "Post-Jayalalithaa, AIADMK and the government have been weakened. She was courageous and had the numbers. But the present government has neither the courage nor the numbers (assembly). They have no other option but to toe the Centre's line," said political analyst Ramu Manivannan.