The Union Ministry of Finance has given consent for Tamil Nadu to borrow additional 0.5% of gross state domestic product (GSDP) amounting to ₹9627 crore for financial year 2020-21, Minister of State for Finance Anurag Singh Thakur said in a written reply to a question Rajya Sabha.
Mr. Thakur was responding to DMK MP P. Wilson’s query on whether the Union government has received any request from the Government of Tamil Nadu for sanction of special grant funds to fight against COVID-19.
“The Union Government has received a request from the Government of Tamil Nadu for special grant of Rs. One lakh crore to all the States, including an amount of ₹9000 crore to the State of Tamil Nadu,” he said in his reply and pointed out that the States have been allowed to do additional borrowing for financial year 2020-21 as a part of Aatma Nirbhar Bharat Abhiyaan package.
The Centre has increased net borrowing limits of State governments for FY2020-21 to 5% GSDP from 3% of GSDP. However, only 0.5% increase is unconditional and the remaining is subject to fulfilling certain conditions.
To Mr. Wilson’s query on whether the Ministry of Finance has sanctioned and disbursed ₹6600 crore to Tamil Nadu government during COVID-19 period to buy medical equipments and accessories, Mr. Thakur answered in the negative.
However, the Ministry of Health and Family Welfare has released ₹559.88 crore to Tamil Nadu. "This includes ₹48.24 crore under National Health Mission for management and containment of COVID-19 pandemic and ₹511.64 crore under India COVID-19 Emergency Response and Health System Preparedness Package," he pointed out.
In a separate written reply to Mr. Wilson’s query on GST dues, Mr. Thakur said the GST compensation due for Tamil Nadu was ₹11,269 crore for FY 2020-21 (April - July).