Stalin also expressed concern that Tamil Nadu could have a large elderly population before it transforms into an advanced state.
Published Nov 18, 2024 | 3:25 PM ⚊ Updated Nov 18, 2024 | 7:34 PM
Tamil Nadu CM Stalin with Chairperson of 16th Finance Commission (X)
Tamil Nadu Chief Minister MK Stalin stated on Monday, 18 November that the current tax revenue-sharing system is crippling the state’s development.
He made the remark while talking at the meeting for the 16th Finance Commission, led by its Chairperson Arvind Panagariya in Chennai. The Commission is on a four-day visit to Tamil Nadu to review various schemes and programs.
“The central tax revenue share for Tamil Nadu has been declining at a steady pace. A new approach that does not affect the growth of advanced states is crucial to address it as the current tax revenue sharing system is punishing Tamil Nadu’s development,” MK Stalin said while speaking at the meeting.
Stressing the importance of states having an equitable tax revenue distribution system, he asserted that the current tax-sharing system hinders the functioning of not just the government of Tamil Nadu but other states too.
Explaining the problems that Tamil Nadu has faced in recent years, the DMK leader said, “Despite facing several natural disasters, Tamil Nadu hasn’t been granted adequate financial support. That burden falls on the stat and with large portion of fund being spent on disaster management, it struggles to allocate resources for development projects.
MK Stalin asked that the 16th Finance Commission’s recommendations are focused on making India become a superpower.
“While we welcome the increase in the revenue share for states to 41 percent, the Union government has shared only 33.16 percent of the tax revenue. Since this adds significantly to the state’s financial burden, the Union government must ensure that tax revenue’s share for states is raised to 50 percent,” he asked.
Additionally, Stalin also pointed out that playing a crucial role in implementing the Union government’s schemes in respective states adds significant burden to the state’s finances.
“Reducing (centre’s) funds for well-performing states and redirecting them to underdeveloped ones affect the overall growth of India. Consequently, states that have lagged in development receive even less of the tax revenue share in the end,” Tamil Nadu CM pointed out.
With Tamil Nadu about to become the state with more number of aged people, Stalin expressed concern that it could become “the state with a large elderly population before it transforms into an advanced state.”
(Edited by Neena with inputs from Baskar P)
