Stalin seeks 50 pc share of Central taxes for state projects

Tamil Nadu Chief Minister MK Stalin on Monday said the Central government must provide 50 per cent share of Central taxes to Tamil Nadu in a bid to boost national development.

Stalin also voiced concern over the slide in devolution of Central funds and growing financial burden on Tamil Nadu to bear additional expenses for Centrally-sponsored projects.

Additional funds should be allocated to performing states like Tamil Nadu, considering the overall development of the country, he argued.

Stalin seeks new approach

"A new approach should be adopted so that developing states like Tamil Nadu are not affected by decrease in Central allocation. Steps should be taken to strengthen the federal structure of India."

Stalin made the submission at a meeting in Chennai with Arvind Panagariya, the Chairman of the 16th Finance Commission, and members of the delegation.

He said the Commission's recommendation should fulfil the needs and meet the aspirations of Tamil Nadu and ensure its greater contribution to make India an economic superpower.

Stalin focusses on states’ role

Stalin underlined that the states formulated and executed programmes for the development of sectors like health, education, social welfare and agriculture.

But the states had less powers to enhance revenue to implement the schemes, he pointed out.

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Stalin regretted that although the 15th Finance Commission had suggested providing 41 per cent tax revenue share, since the last four years, the Centre's total tax devolution only accounted to 33.16 per cent.

Stalin on Tamil Nadu’s difficulties

Any decrease in fund allocation affected the fiscal conditions of Tamil Nadu, the chief minister said.

"This has imposed a burden on states. Hence, it would be appropriate to increase the Centre’s share to 50 per cent, acceptable to all states," he said.

Cuts in Central assistance

Such a move would place Tamil Nadu in a better position to execute developmental projects and also enable functional autonomy with regard to financial management, Stalin said.

Decrease in Central allocation will not only make sustenance of development difficult but also affect the economic growth of the entire country, he said.