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

Tamil Nadu Chief MinisterK Palaniswami on Thursday urged Prime Minister Narendra Modito issue suitable directions to the Social Justice Ministry torestructure the Post Matric scholarship scheme with a sharingpattern of 60:40 basis between the Centre and states.

Emphasising that the Post Matric scholarship schemeshould be considered “in line” with other Centrally sponsoredschemes, and funded with a sharing pattern of 60:40 betweenthe Centre and the States, he said he had already addressedthis issue in his earlier letters in 2018 and 2019 to the PM.

In a letter to Modi, Palaniswami said, “I would liketo bring to your kind attention an urgent and vital issueconcerning Tamil Nadu; namely, the concept of application ofcommitted liability in releasing funds under the Post Matricscholarship scheme to the State.” Earlier the expenditure under the scheme at the endof each five-year plan period was taken as the committedliability of the state for the next five-year plan period.

Although the practice of 5-year planning was given upafter the end of the Twelfth Five Year Plan (2012-2017), theearlier practice of re-fixing the states Committed Liabilityat the end of five years has been continued.


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

Although the state spent Rs 1,689.34 crore on thescheme in 2017-18, Rs 1,910.19 crore in 2018-19 and Rs2,005.70 crore in 2019-20, it received only Rs 162.88 crore,Rs 383.73 crore and Rs 479.24 crore respectively as Centralshare for these years, he added.

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

“This has placed an extremely high burden on thestate governments finances. It also results in a situation,where what is really a Central sector scheme will be largelyfunded by the states from their own resources,” the chiefminister said.

Hence, Palaniswami requested, that the Post Matricscholarship scheme may be funded with a sharing pattern of60:40 between the Centre and the States, “in line” with otherCentrally sponsored schemes.

“I request the Prime Minister to kindly issuesuitable directions to the Ministry of Social Justice torestructure the Post Matric Scholarship scheme with a sharingpattern of 60:40 basis between the Centre and the States,” hesaid in the letter.

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