Tue Sep 02 12:23:27 UTC 2025: Okay, here’s a summary of the article and a rewrite as a news article:

**Summary:**

Tamil Nadu’s Finance Minister, Thangam Thennarasu, has publicly criticized the Union government’s financial policies, particularly concerning centrally sponsored schemes and GST revenue sharing. He argues that the Union government’s decreasing allocation for these schemes places an increasing financial burden on Tamil Nadu. He also expressed concern regarding the U.S. tariffs impacting key industries like textiles and has requested assistance from the Union government. Furthermore, Thennarasu highlighted that the state is not getting adequate support from the Finance Commissions. Despite these challenges, he touted the DMK government’s economic achievements, including increased GSDP and reduced deficits, and progress on fulfilling election promises.

**News Article:**

**Tamil Nadu Decries Union Government’s Funding Cuts, Seeks Special Package**

*Chennai, September 2, 2025* – The Tamil Nadu government, led by Finance Minister Thangam Thennarasu, has sharply criticized the Union government’s financial policies, claiming they are straining the state’s resources. Speaking at a press conference Tuesday, Thennarasu asserted that the Union government’s decreasing share of allocation for Centrally sponsored schemes is forcing Tamil Nadu to shoulder an increasingly heavy financial burden.

“The Union government’s shrinking contribution to key programs is adding immense stress to our state finances,” Thennarasu stated. He cited examples like the Sarva Shiksha Abhiyan, Prime Minister Awas Yojana, and Indira Gandhi National Old Age Pension Scheme, where the Union government’s share has significantly decreased over time.

A day before the GST Council meeting, Thennarasu also reiterated the state’s demand that the Union government protect revenue receipts during GST rationalization, warning that any significant revenue loss could jeopardize ongoing state programs. He emphasized that while Tamil Nadu welcomes GST rationalization, the benefits should be passed on to consumers, and the Union government must safeguard state finances.

Furthermore, Thennarasu expressed grave concern over the impact of recent U.S. tariffs on Indian exports, particularly affecting Tamil Nadu’s textile, leather, and gems industries. He revealed that the state government has requested a special package from the Union government, including duty drawbacks and import duty exemptions, to mitigate the damage, especially to the textile hub of Tiruppur.

The Finance Minister also criticized the Finance Commissions for what he described as a lack of justice in fund devolution to Tamil Nadu, arguing that the state is being penalized due to fund allocation based on population.

Despite these financial challenges, Thennarasu highlighted the DMK government’s economic achievements, including an 11.19% increase in GSDP and reductions in both revenue and fiscal deficits. He also claimed significant progress in fulfilling the party’s 2021 election promises, stating that work is underway or completed on the majority of pledged projects. He added that Tamil Nadu has achieved these goals despite natural disasters and reduced funding from the Union government. However, dozens of other projects are pending with the Union government.

The Finance Minister’s remarks come as tensions rise between state and Union governments over financial autonomy and resource allocation, suggesting a potentially contentious GST Council meeting in the coming days.

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