Tamil Nadu Appeals for Greater Share of Central Taxes

Tamil Nadu's Chief Minister M K Stalin urges the central government to increase Tamil Nadu’s share of central taxes to 50 percent. He stresses the need for equitable funding to enhance development and fiscal autonomy, amid concerns over declining Central allocations and increased financial burdens.

Tamil Nadu's Chief Minister, M K Stalin, on Monday called for the Union government to provide a 50 percent share of Central taxes to Tamil Nadu, amidst growing concern over declining Central fund allocations and rising financial strains due to Centrally-sponsored projects.

Stalin highlighted that performing states like Tamil Nadu require additional funding for holistic development and contended that the existing system negatively impacts developing states. His remarks were made during his meeting with the 16th Finance Commission members.

He cautioned that reduced Central funding could hinder both state and national economic growth. Stalin emphasized the importance of equitable state funding to sustain development and advocated for a new strategy by the Commission to accommodate these financial needs.

(With inputs from agencies.)