CM Stalin bats for 50 pc share of central taxes to Tamil Nadu
Pitches for more funding for 'performing states', support for disaster relief
Chief Minister MK Stalin handing over Tamil Nadu's demands to Arvind Panagariya, the chairman of 16th Finance Commission, in Chennai on Monday. Finance Minister Thangam Thennarasu, Chief Secretary N Muruganandam, and Finance Secretary T Udhayachandran were also present
CHENNAI: Stressing that historical injustices meted out to Tamil Nadu in previous finance commissions' recommendations need to be addressed, Chief Minister MK Stalin on Monday urged the 16th Finance Commission to increase the State's share of Central taxes from 41 per cent to 50 per cent.
In his address at the 16th Finance Commission meeting here, Stalin appreciated the 15th Finance Commission's recommendation to increase states' share of tax revenue to 41 per cent but noted that the actual share has been only 33.16 per cent over the last four years due to increased minimum tax and surcharges.
Expressing concern over the decrease in devolution of Central funds and the increasing financial burden on Tamil Nadu to bear additional expenses for Centrally-sponsored projects, Stalin said additional funds should be allocated to performing states like Tamil Nadu, considering the overall development of the country.
Only the states formulate and execute programmes for the development of sectors like health, education, social welfare and agriculture. But, states have less power to enhance revenue to implement the schemes, Stalin pointed out, emphasizing the need for balanced tax sharing.
Claiming that Tamil Nadu's tax distribution has declined from 7.831 per cent to 4.079 per cent between the 9th and 15th Finance Commissions, Stalin urged the Commission to adopt a strategy that could fund more to the states to sustain the latter’s development trajectory.
Stalin also urged the commission to recommend adequate funds towards immediate disaster relief and rehabilitation activities and requested consideration of Tamil Nadu's growing ageing population and provision of necessary financial resources for social investments.
Criticising the Union government's redistribution of funds, "that only hampers growth and reduces tax distribution to underdeveloped states", Stalin said states like Tamil Nadu, with effective administrative systems, can contribute significantly to India's economic development through a revised financial distribution system.
The Chairman of the 16th Finance Commission Arvind Panagariya, who led a 12-member team, also discussed various issues with the Chief Minister, ministers and State officials at the meeting held at a private hotel in Guindy here.