The failure of the previous AIADMK regime to hold the local body in Tamil Nadu cost the exchequer badly. In all, the state lost Rs 2,577.29 crore of central grants in the financial years 2017-18, 2018-19 and 2019-20, according to the white paper released by finance minister PalanivelThiagarajan.
The grants, even those recommended by the Finance Commission, were not released in time for a variety of reasons. The non-release of substantial portion of grants to local bodies recommended by the 14thFinance Commissionin the three fiscal years due to the failure to hold local body elections in time is a case in point.