DMK chief Stalin slams TVK govt over GST slump, loss of Rs 1,614 cr Korean investment to AP

Synopsis

M K Stalin has accused the ruling TVK government of causing economic decline in Tamil Nadu. He pointed out the record lows in GST revenue growth compared to other states. A significant foreign investment proposal shifted to Andhra Pradesh due to governmental negligence. Former finance minister Thangam Thennarasu highlighted the worrying economic stagnation under the current regime.

DMK chief M K Stalin on Monday slammed the ruling TVK for allegedly pushing Tamil Nadu into a severe economic downturn characterised by plunging tax revenues, systemic "policy paralysis," and mega industrial projects shifting to a neighbouring state.

The former chief minister highlighted two critical developments that he claimed exposed the fiscal mismanagement and administrative failures of the state government.

He said on 'X' that under the TVK regime, Tamil Nadu's Goods and Services Tax (GST) revenue growth has hit an unprecedented low, sinking well below the national average (of 22.9 per cent in October).

"The economic growth of Tamil Nadu has been completely buried under the TVK rule," he remarked, pointing to the latest fiscal indicators as proof of a deteriorating state economy.

Compounding the state's financial worries, Stalin stated that a massive Korean investment proposal worth Rs 1,614 crore, which was originally bound for Tamil Nadu, has shifted to Andhra Pradesh, and blamed the loss on the "sheer negligence" of the Tamilaga Vettri Kazhagam government.

Live Events

He further alleged that the Guidance Tamil Nadu -- the state's premier nodal agency for investment promotion and single-window clearance, which historically brought immense global prestige to the state -- has allegedly been systematically dismantled and sacrificed to satisfy the "personal egos" of individuals within the ruling dispensation.

"One must learn from them how to move so rapidly in reverse gear across all sectors," Stalin said, mocking the state government's performance.

The DMK leader also took a direct swipe at Chief Minister C Joseph Vijay, accusing him of being completely detached from the state's pressing economic realities and noted that while the state's financial future hangs in the balance, the CM is busy embarking on public roadshows and waving to crowds in assembly constituencies bound for upcoming by-elections.

Warning people of a bleak financial future, Stalin concluded with a caution: "Brace for tough times. Tamil Nadu is doomed under the TVK government."

DMK leader and former finance minister Thangam Thennarasu also hit out at the TVK government over the state's economic performance, alleging that Tamil Nadu continues to witness a sharp decline and economic stagnation under its rule.

Citing official figures for October GST revenue growth, Thennarasu highlighted that while neighbouring southern states recorded strong double-digit growth, Tamil Nadu lagged behind with a modest 3 per cent increase.

According to data shared by him, neighbouring states saw substantial growth in October GST mop-up, with Andhra Pradesh recording 24 per cent, Kerala 23 per cent, Karnataka 18 per cent, and Telangana registering 14 per cent growth.

In contrast, Tamil Nadu's collections grew by only 3 per cent, following contractions of -1 per cent in August and -5 per cent in September.

"It is concerning that Tamil Nadu, once among India's leading states in economic growth, continues to witness a decline under the TVK government," Thennarasu posted on 'X'.

He pointed out that although taxes collected on key goods imported into Tamil Nadu contributed to a modest uptick in overall receipts, tax revenue generated from domestic production has steadily dropped.

"I wish to point out to the TVK government that this must be viewed as an indicator of the broader economic stagnation prevailing in the state," he said.

Urging the state administration to take corrective measures, Thennarasu said the government must boost internal manufacturing rather than relying heavily on levies from imported commodities.

"I therefore urge the TVK government to take immediate steps to increase domestic production and expand sales to other states and overseas markets, instead of relying solely on revenue from imported goods. This is essential to strengthen Tamil Nadu's overall economy and create more employment opportunities for our young people," he added.

(You can now subscribe to our Economic Times WhatsApp channel)

Some elections matter more than you know: No crop changed in the fields, yet sugar, coffee and soya got cheaper in a day

You can buy a walkie-talkie online. But can you legally use it?

KYB and KYC: Quick commerce, the Damani premium and what DMart must deliver – 3rd and concluding part

KYC and KYB: Inside Damani’s DMart, the retail chain for the middle class. And stock for the long term? – Part 2 of 3

Will it be a regulatory nightmare if an exchange lists on its own platform?

KYC and KYB: Inside Damani’s Avenue Supermarts that refuses to charge more – Part 1 of 3