Presented Tamil Nadu's key demands to the #16thFinanceCommission: š Increase States' share of central taxes to 50% to ensure greater fiscal...
Chief Minister M.K. Stalin presented key fiscal demands to the Sixteenth Finance Commission, urging raising states tax share to fifty percent.
M.K.Stalin@mkstalinOriginal post
Presented Tamil Nadu's key demands to the #16thFinanceCommission:
š Increase States' share of central taxes to 50% to ensure greater fiscal autonomy and service delivery.
š¤ Ensure balanced inter-state devolution, incentivising good governance & growth.
š¹Address Tamil Naduās challenges of rapid urbanisation disaster relief expenditure and ageing population.
We hope that the Commission will remedy past injustices and lay a roadmap for a true cooperative federalism.
Tamil Nadu Chief Minister M.K. Stalin presented the state's comprehensive memorandum to the Sixteenth Finance Commission during high-level consultations held in Chennai. Stalin urged the commission to recommend raising the states' share in divisible central tax revenues from forty-one percent to fifty percent, emphasizing that expanding the net divisible pool is essential to safeguard fiscal federalism and enable states to deliver vital social sector services effectively.
The Chief Minister highlighted that progressive states like Tamil Nadu face acute fiscal distress due to successive reductions in horizontal tax devolution formulas that penalize economic efficiency and demographic control. He argued that the commission must incentivize good governance, economic performance, and administrative transparency while addressing Tamil Nadu's unique challenges stemming from rapid urbanization, climate vulnerability, and an expanding elderly population.
Stalin called upon the commission to check the Union Government's excessive reliance on cesses and surcharges that are arbitrarily excluded from the divisible tax pool. He affirmed that equitable fiscal devolution strengthens national unity and ensures balanced regional development, urging the panel to safeguard state fiscal autonomy through progressive and non-discriminatory revenue distribution recommendations.