The powers of the States on various subjects, including minerals, fisheries, and cooperatives, have recently been “snatched away” from the State governments through administrative notifications and orders “without any Constitutional amendments”, Tamil Nadu Legislative Assembly Speaker M. Appavu said on Friday (September 12, 2025). This was a “massive setback to federal autonomy,” he added.
During his speech at the 11th Commonwealth Parliamentary Association India Region Conference in Bengaluru on Friday (September 12, 2025), Mr. Appavu said that in a federal set-up, relations between the Union and State governments must be cordial and affirmative, as State governments have the closest contact with the people. “The Indian Constitution has been framed in such a way that the States will prosper if there is harmony, prosperity, and development.”
Recalling a recent incident in which the Union government had granted permission to a private company to mine mineral resources in Madurai district, prompting protests, Mr. Appavu said Tamil Nadu Chief Minister M.K. Stalin had made an announcement that he would not allow mining activities in that area. The Speaker further contended: “However, even if such issues are discussed in the legislature, there is no solution, as the ultimate decision lies in the hands of the Union government.”
When the United Progressive Alliance (UPA) government introduced the GST bill, the Prime Minister, who was then the Chief Minister of Gujarat, had claimed that it would not only snatch away the rights of the State governments, but it would also lead them to a position of subservience to the Union government, Mr. Appavu recalled. “However, after he took over as Prime Minister, taxes were collected in four slabs for the last eight years under GST, which has recently been reduced to two slabs, further reducing the share of the State government.”
The Union government was also imposing various taxes on goods without considering the opinion of the States, Mr. Appavu said. “The Central government is using the State governments only as enforcers for collecting GST taxes (50:50). The Union government, which receives 50% of the GST taxes, has withheld ₹2,152 crore under the Samagra Shiksha Abhiyan scheme, which is due to the State government.”
The Union government’s contribution of 60% of funds for 25% reservation for poor children in private schools under the RTE Act has not been allocated for the last four years, he said, adding that the funds allocated for the MGNREA scheme have also been reduced. “Similarly, even when States are hit by natural disasters, like cyclones and floods, only meagre funds are released to Opposition-ruled States. This illustrates how political disagreements lead to punitive action.”
The Union government received revenue through various taxes, including income tax, customs duty, excise duty, service tax and petroleum cess “but shares a very meagre amount to the State governments,” Mr. Appavu said. The State government, through its own tax revenues, spent sizeable amount on education, healthcare, and road facilities and for various flagship schemes, he said.
Mr. Appavu also charged that Union government did not distribute these funds uniformly to all States. It has “not provided any concessions for the loans availed by the poor farmers, weavers, self-help groups, students and also loans availed by micro, small and medium enterprises, but instead has written off 15 lakh crore rupees of bank loans taken by corporate companies managed by a few wealthy people, treating them as non-performing assets, which is regrettable,” he said.
Recalling that the Bills introduced and adopted during the 17th Lok Sabha (2019-2024) were assented to by the President within a couple of days and they became laws, he said: “However, in the case of the Tamil Nadu Legislative Assembly, some of the Bills sent for the assent of the Hon’ble Governor have been pending for years.”
He also recalled that the Governor has recently returned the Tamil Nadu Fiscal Responsibility Amendment Bill, which was pending with him for about one and half years after it was passed by the Tamil Nadu Legislative Assembly, for reconsideration of the House. “This has made it even more difficult for the State government to allocate funds for public welfare programmes,” Mr. Appavu said.
Referring to the Supreme Court judgment over time limit for the President and Governors for assenting the Bills in the case filed by the Tamil Nadu government, Mr. Appavu said that it was historic judgment, which has now become a settled law. He also recalled the opinion expressed by the Prime Minister of India when he was the Chief Minister of Gujarat, that the States should be given complete financial autonomy or the GST share to the States should be enhanced to 75% so that the States would be able to implement more schemes that would ultimately benefit the people.
Published – September 12, 2025 06:09 pm IST
