1971 census must be base for tax sharing, Stalin tells Centre

The 15th Finance Commission constituted last year by the Centre had issued a public notice last week stating that it would use the population data of 2011 while making recommendations on the ratio in which the tax money is divided among states by the Centre. 

Opposing the use of the 2011 census, Stalin said the notification of the Commission would reduce the financial autonomy of Tamil Nadu, which was being punished for successfully implementing the family planning programme as population growth was higher in northern states. 

Claiming that Tamil Nadu had not received nearly 50 per cent of its tax share from the Centre owing to the recommendations of the 13th and 14th Finance Commissions, Stalin added that funds have not been allocated for a single big-ticket project ever since the BJP assumed office. 

Noting that the parameters adopted by the 14th Finance Commission had resulted in the state receiving 19 per cent less tax share from the Centre than the previous allocations made based on the recommendations of the 13th Commission, Stalin remarked that adoption of 2011 population data by the Constitutionally mandated 15th Finance Commission makes one to wonder if the finance commission treats a state as a corporation or municipality. 

Appealing to all states to urge the Centre to revise the terms of reference of the 15th Finance Commission, Stalin also asked Chief Minister Edappadi K Palaniswami to meet and appeal to the PM and Finance Minister to resolve the issue.