Sitharaman defends central funds to Tamil Nadu, advises on debt in Kancheepuram

Union Finance Minister Nirmala Sitharaman addressed reporters in Kancheepuram on Thursday, asserting that Tamil Nadu has always received its due share of central funds under the administration of Prime Minister Narendra Modi. During her interaction, Sitharaman highlighted the central government's consistent financial support to the state, noting that this funding was ensured even while the Dravida Munnetra Kazhagam (DMK) was in power.

Speaking on the fiscal health of the state, Sitharaman offered advice on debt management. She stated that states should focus on utilizing their borrowings to create capital assets instead of directing those funds toward revenue expenditure. According to the Finance Minister, capital spending is crucial because it generates long-term economic benefits and actively supports growth, unlike revenue expenditure.

In addition to financial matters, Sitharaman welcomed the stated approach of the newly formed Tamilaga Vettri Kazhagam (TVK), which advocates for maintaining an amicable relationship with the Centre. However, she clarified that it was still too early to make a definitive assessment of the TVK's functioning as a political entity.

When asked about TVK leader Vijay's criticism of Chief Minister MK Stalin in the Assembly, the Finance Minister downplayed the friction. She remarked that political exchanges are a standard part of legislative proceedings and that there was nothing unusual about such debates.

Sitharaman also addressed local development demands in Kancheepuram. She announced that the central government would consider the state's request for a new medical college in Kancheepuram, provided that a formal proposal for the institution is officially submitted.

However, when questioned about the proposed Parandur greenfield airport project, the Finance Minister declined to comment. She explained that she was not in a position to speak on the matter as she needed to understand the issue better.