At the 10th Governing Council meeting of Niti Aayog chaired by Prime Minister Narendra Modi on Saturday, opposition-ruled states voiced key concerns over financial support and water-sharing issues, urging the Centre to address longstanding grievances.
Tamil Nadu Chief Minister MK Stalin highlighted the ongoing fiscal struggles states face in receiving funds, calling for a more equitable distribution of national revenue. Meanwhile, Punjab Chief Minister Bhagwant Mann underscored the water scarcity in his state, opposing the existing water-sharing arrangement with Haryana.
Addressing the council, Stalin urged the Union government to ensure “non-discriminatory cooperation” across states. Referring to his state’s tussle with the Centre over the three-language policy and a pending sum of over ₹2,000 crore, Stalin said, “It is not ideal for states in a federal democracy like India to struggle, argue, or litigate to receive the funds rightfully due to them. It hinders the development of both the state and the country.”
He also pointed out discrepancies in tax devolution. While the 15th Finance Commission recommended 41% of divisible tax revenue be allotted to states, Tamil Nadu has received only 33.16% of the Union’s gross tax revenue over the last four years, Stalin claimed. He stressed that the states’ share should be raised to 50%, citing increasing financial obligations under centrally sponsored schemes. Stalin did, however, acknowledge the Prime Minister’s vision for a $30 trillion economy by 2047, calling it “praiseworthy.”
In a separate issue, Punjab’s Chief Minister Bhagwant Mann addressed the ongoing water-sharing conflict with Haryana. Mann contended that Punjab is already grappling with water shortages and cannot spare any for its neighbouring state.
Criticising the current Sutlej-Yamuna-Link (SYL) project, Mann advocated for the construction of a Yamuna-Sutlej-Link (YSL) canal instead. “Given the situation in Punjab,” he said, “a YSL canal should be considered.”
Mann argued that the Ravi, Beas, and Sutlej rivers are running at deficits and insisted that water should be reallocated from surplus to deficit basins. He added that Punjab has long demanded inclusion in negotiations involving Yamuna water sharing, referencing a 1954 agreement between the former Punjab and Uttar Pradesh. The pact granted Punjab two-thirds of Yamuna's water, yet didn’t define irrigation regions.
He further pointed to a 1972 Irrigation Commission report, which classified post-reorganisation Punjab as part of the Yamuna River Basin. “If Haryana has a claim over the waters of Ravi and Beas rivers, Punjab should also have an equal claim on Yamuna's water,” Mann stated.
While most state leaders participated in the meeting, notable absentees included West Bengal’s Mamata Banerjee, Karnataka’s Siddaramaiah, Kerala’s Pinarayi Vijayan, Puducherry’s N Rangasamy, and Bihar’s Nitish Kumar.