Annamalai attacks Vijay govt as Tamil Nadu clocks single-digit GST growth

Tamil Nadu's economic performance under the TVK government has come under attack from former BJP state president K Annamalai and DMK president MK Stalin, who separately highlighted weak GST collections and loss of a major Korean investment to Andhra Pradesh.Annamalai, We The Leaders founder and former BJP state president, in a detailed post in X, said Tamil Nadu's GST collection performance over the last six months "raises serious questions about our state's economy, the government's fiscal priorities, and the incumbent TVK government's ability to generate sustainable revenue". The only relief, he noted, was that revenues finally showed growth in October — though still in single digits."What makes the single-digit growth, following several months of degrowth, even more concerning is that the recovery appears far from adequate," wrote Annamalai. "This comes despite the festive season in Tamil Nadu, extended school holidays, and a significant increase in tourist inflows and associated economic activity."Official figures confirm the pattern. After modest growth in April, Tamil Nadu's domestic GST collections contracted year-on-year through May to September, including a 5% fall in September to Rs 10,188 crore. In October, they rose just 3% to Rs 11,661 crore. By contrast, Karnataka grew 18%, Maharashtra 13%, Gujarat 16% and Haryana 17% in the same month, while the national average stood at 22.9%. Annamalai rejected using post-settlement figures as a defence. "Please do not cite post-settlement revenue growth as an argument, because we are comparing GST revenues from last year and the current year, and IGST settlement was not introduced recently." Post-settlement GST is the final amount of State GST (SGST) a state actually retains after the Centre apportions and settles the Integrated GST (IGST) collected on interstate supplies according to the place of consumption.MK STALIN ATTACKS TVK, SAYS VIJAY'S TVK GOVT SACRIFICED PROMOTION AGENCYStalin, some hours later, joined in the criticism of the Vijay-led government. In a post on X in Tamil, he listed two developments from the morning — first, that under the TVK government, Tamil Nadu's GST growth had fallen below the national average and the state's progress had been "buried"; second, that Korean investments worth Rs 1,614 crore meant for Tamil Nadu had gone to Andhra Pradesh due to the government's negligence. Stalin accused the administration of sacrificing Guidance Tamil Nadu — the investment promotion agency that had earlier brought prestige to the state — to personal egos. "One really ought to learn from these people how to shift into reverse gear so rapidly across every single sector," he said.Targeting Chief Minister C Joseph Vijay, Stalin added that the CM, "who seems to neither understand nor even be aware of what is actually going on," had instead set out to wave at crowds in bypoll constituencies and put on a show. He closed, "Brace for tough times. Tamil Nadu is doomed under the TVK government."The investment claim is grounded in fact. Three South Korean automotive component suppliers to Hyundai and Kia—Hwashin, Seoyon and Iwamet—signed MoUs with the Andhra Pradesh government for projects in Anantapur totalling Rs 1,614 crore and expected to create 1,418 jobs. Reports indicate the firms had earlier held discussions with Tamil Nadu before opting for Andhra Pradesh.K ANNAMALAI FLAGS SLOWDOWN IN CAPITAL SPENDING, QUESTIONS MANUFACTURING GROWTHAnnamalai urged the TVK government to monitor capital expenditure across departments, saying a slowdown in such spending was breaking the circular economy that government investment normally creates.He also pointed to a structural issue in manufacturing. Tamil Nadu accounts for 15.43–15.44% of India's factories — the highest share — yet contributes only around 10.26–10.90% of national manufacturing Gross Value Added, ranking third."A decade and a half ago, Tamil Nadu's share of the national manufacturing GVA stood at 10.3%. Remarkably, it appears to have remained largely stagnant since then, while states that once trailed Tamil Nadu are steadily narrowing the gap," he said. He reiterated that regional imbalance reports from the State Planning Commission merely diagnose the problem and that lagging districts need targeted intervention."The top-ranking student needs attention, but the students at the bottom of the list need it most," Annamalai added.Meanwhile, former finance minister Thangam Thennarasu, also of the DMK, separately flagged the October GST data, noting Kerala's 23%, Andhra Pradesh's 24%, and Telangana's 14% growth against Tamil Nadu's 3%.Thennarasu argued that while import-related taxes had provided some relief, revenue from Tamil Nadu's own production continued to decline — an indicator of broader stagnation.The twin attacks, by a former BJP state president now operating independently, and the leader of the main opposition party, underscore the political pressure on the TVK government over revenue trends and investment losses even as the Vijay-led administration seems to be getting most things right.- Ends(Written by Anand Singh)