Puducherry CM Urges Increased Central Assistance Amid Rising Costs

Chief Minister N Rangasamy requested the Union Home Ministry to increase central assistance to Puducherry, citing rising expenditure and limited revenue generation. He proposed an enhanced and formula-based assistance and sought special Central support for infrastructure development and social welfare programs.

Chief Minister N Rangasamy has called on the Union Home Ministry to boost the 'normal central assistance' (NCA) to Puducherry, advocating for a formula-based allocation equivalent to Finance Commission grants. The CM presented a detailed request to Union Home Secretary Govind Mohan during a recent meeting, outlining the financial challenges faced by the Union Territory.

Rangasamy highlighted in his note that Puducherry's lack of inclusion in successive Central Finance Commissions' Terms of Reference has hindered the territory’s access to adequate funding. The CM noted the substantial increase in committed expenditures such as salaries, pensions, debt servicing, and power procurement.

Given the limited scope for additional tax-based revenue after GST implementation, Rangasamy emphasized Puducherry’s critical dependence on NCA. He proposed a minimum ten percent annual increase in NCA until a formula-based system is established and sought special assistance for infrastructure and social welfare enhancements, including subsidies and financial support schemes.