Niti Aayog meet: Southern states stress on cooperative federalism, 3 Opposition CMs skip event

During his presentation, Tamil Nadu CM M K Stalin highlighted his state’s developmental strides while raising concerns over the Centre’s fiscal policies. Both he and his Telangana counterpart Revanth Reddy stressed on the need to uphold the principles of cooperative federalism in the march toward a “Viksit Bharat” by 2047.

Reiterating his state’s goal of becoming a one-trillion-dollar economy by 2030, Stalin said, “We are marching ahead with long-term plans. I assure you that Tamil Nadu will make a significant contribution to India’s vision of a USD 30 trillion economy.”

“To realise that vision, cooperative federalism must be the strong foundation. I strongly urge that the Union Government must extend cooperation without bias to all states, including Tamil Nadu, to help them achieve their development goals,” Stalin said, drawing attention to the growing strain in Centre-state financial relations.

He reserved some of his most forceful criticism for the Centre’s decision to withhold funds under the Samagra Shiksha Abhiyan, citing Tamil Nadu’s refusal to sign a Memorandum of Understanding tied to the PM SHRI scheme.

“Approximately Rs 2,200 crore of Union funds have been denied to Tamil Nadu for 2024–2025. This adversely impacts the education of children studying in government schools and those studying under the Right to Education Act,” he said. “It is not acceptable in a cooperative federal India for funds due to a state and already approved to be withheld, delayed, or reduced.”

Stalin also took aim at tax devolution trends, pointing out that while the 15th Finance Commission had recommended that states receive 41% of the Centre’s net tax revenue, the actual share over the past four years had been only 33.16%.

“On one hand, the shrinking tax devolution from the Union affects state finances. On the other hand, the increased financial burden on states to co-fund centrally launched schemes places dual pressure on state budgets,” he said. “I strongly urge the Union Government to increase the share of tax devolution to states to 50%, which is the only just course of action.”

He also requested that Union ministries allow states to present schemes in their own languages alongside English. “Tamil Nadu should be able to present our schemes in Tamil and English,” he said. “We appreciate the Prime Minister’s vision, but that vision must accommodate India’s diversity.”

During his speech, Reddy also emphasised that “the progress of the nation is intrinsically linked to the progress of each of its constituent units”.

“It is, therefore, imperative that we support, catalyse, and harness the potential of rapidly advancing states, while simultaneously extending every necessary assistance to those that are still catching up. This balance is crucial to achieving equitable national growth,” he said. “We must continue to collaborate, exchange best practices, and support one another in building a resilient, inclusive, and future-ready India.”

While Himachal Pradesh CM Sukhvinder Singh Sukhu flagged the issue of pending central dues to the state, Punjab CM Bhagwant Mann said his state was being meted out “stepmotherly” and discriminatory treatment.

Sukhu said the special needs of hill states should be taken into account and considered for higher allocation of funds, thereby relaxing eligibility criteria in various schemes.

“If legitimate dues are released in time, Himachal Pradesh will become self-reliant,” he said. The CM also elaborated on his state’s vision to position Himachal Pradesh as the most favoured tourist destination on the national tourism map. He said the government is working on a comprehensive tourism promotion package integrating religious, eco, water, nature, and health tourism to attract domestic and international tourists.

Mann spoke about the water tussle with BJP-ruled Haryana, saying Punjab has no surplus water for any state, and argued that in the wake of a grim situation in the state, construction of the Yamuna Sutlej Link (YSL) canal should be considered instead of the Satluj Yamuna Link (SYL canal).

He also raised concerns about the approach of the Bhakra Beas Management Board, accusing it of taking administrative actions which appear to be biased and against the interest of Punjab.

Mann also sought a special industrial package for border districts, saying that industries on the border are at a disadvantage due to the proximity to Pakistan.