Sitharaman criticises states seeking more funds, says 'You Me' culture won't work

Chennai, Sep 26 (IANS): Union Finance Minister Nirmala Sitharaman on Monday criticised states seeking greater funds from the Central government on the basis of the fact that they generated more revenue.

Addressing a CNN-News18 Town Hall event here, she made the comment while responding to Tamil Nadu's demand for more funds.

"You can't expect more money just because you generate more money than other states. 'You, me' narrative won't work. A country cannot prosper like that. Revenues earned by states are for India," she said.

Sitharaman also described the "revadi" culture (populist measures offered by states) as "bogus".

She said such measures are meant for misleading the common man.

"Do understand the finances of your state and account for it in your budget. Pay your own subsidies. Do not expect from us," she said.

On the issue of releasing funds for states, she said: "The population is coming down. Many states have valid questions to be asked... reproductive rate is almost going to be negative. The Finance Commission took the route to make up for it on some level proves that there is a recognition of the problem. The Commission is addressing it, not to the proportion of expectation, but somewhat."

She also said that welfare is equivalent to public good, adding that it undoubtedly means hospitals, public schools, infrastructure and good roads.

Sitharaman also called out the opposition parties that have been criticising the Goods and Services Tax (GST) regime.

"Institution building takes time... to trash it is very easy.

"Some of us probably will have a greater level of patience, some may not, but institutions need patience," she said.

She pointed out that the GST was constituted by a panel of state ministers which was led by West Bengal's Asim Dasgupta, who came from an opposition party.

Asked whether southern states were being discriminated against in the devolution of funds as defined by successive Finance Commissions, she said that the issue had been addressed to an extent.



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Comment on this article

  • Jossy Tauro, Mangalore

    Tue, Sep 27 2022

    They should provide funds as per States paying GST and tax money to central government. Some states people may not be paying proper tax.

    DisAgree Agree [9] Reply Report Abuse

  • geoffrey, hat hill

    Tue, Sep 27 2022

    What is 'You, me' culture? Is it verbatim translation of 'Tu Tu Mein mein' Or some Tamil expression?

    DisAgree Agree [6] Reply Report Abuse

  • flavian dsouza, BLR

    Tue, Sep 27 2022

    Center is collecting from states and then telling states you cant ask as you wish ...or what you deserve or rightfuly yours .. GST should be reported under center but colected and used by states ..why send it and get it back its a waste of time and resources

    DisAgree Agree [8] Reply Report Abuse

  • Raj, Mangalore

    Tue, Sep 27 2022

    Gujarat get preference from the Centre. 6,300 crore for the Ahmedabad bullet train. Crores for the Patel statue. Crores for other projects that are under the radar.

    DisAgree [1] Agree [25] Reply Report Abuse

  • T. DSilva, Udupi

    Mon, Sep 26 2022

    States be careful, ... Only Adani can ask more Funds and money,,, Not yet become Number one,,, FM's Mission still not accomplished.. .

    DisAgree [1] Agree [24] Reply Report Abuse

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Title: Sitharaman criticises states seeking more funds, says 'You Me' culture won't work

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