Restructure post matric aid, fund on 60:40 basis: TN CM tells Modi

Tamil Nadu Chief Minister K Palaniswami on Thursday urged Prime Minister Narendra Modi to issue suitable directions to Social Justice Ministry to restructure Post Matric scholarship scheme with a sharing pattern of 60:40 basis between Centre and states.

Emphasising that Post Matric scholarship scheme should be considered in line with or Centrally sponsored schemes, and funded with a sharing pattern of 60:40 between Centre and States, he said he had already addressed this issue in his earlier letters in 2018 and 2019 to PM.

In a letter to Modi, Palaniswami said, "I would like to bring to your kind attention an urgent and vital issue concerning Tamil Nadu; namely, concept of application of committed liability in releasing funds under Post Matric scholarship scheme to State."

Earlier expenditure under scheme at end of each five-year plan period was taken as committed liability of state for next five-year plan period.

Although practice of 5-year planning was given up after end of Twelfth Five Year Plan (2012-2017), earlier practice of re-fixing state's Committed Liability at end of five years has been continued.

As a result, committed liability of Tamil Nadu which was Rs 353.55 crore in 2012-13, with effect from 2017- 18, has risen to Rs 1,526.46 crore, he said.

Although state spent Rs 1,689.34 crore on scheme in 2017-18, Rs 1,910.19 crore in 2018-19 and Rs 2,005.70 crore in 2019-20, it received only Rs 162.88 crore, Rs 383.73 crore and Rs 479.24 crore respectively as Central share for se years, he added.

During this year (2020-21), for a total expected expenditure of Rs 2,110.90 crore, Tamil Nadu will be eligible to receive only Rs 584.44 as Central share.

This has placed an extremely high burden on state government's finances. It also results in a situation, where what is really a Central sector scheme will be largely funded by states from ir own resources, chief minister said.

Hence, Palaniswami requested, that Post Matric scholarship scheme may be funded with a sharing pattern of 60:40 between Centre and States, "in line" with or Centrally sponsored schemes.

"I request Prime Minister to kindly issue suitable directions to Ministry of Social Justice to restructure Post Matric Scholarship scheme with a sharing pattern of 60:40 basis between Centre and States," he said in letter. 

(IM CREDITS:PTI)