Chennai, November 18 (BPNS)
Tamil Nadu Chief Minister M.K. Stalin held discussions with the Chairman of the 16th Finance Commission, Aravind Panagariya, and members of the commission on Monday at the state secretariat.
He highlighted the importance of their recommendations in shaping India’s progress towards becoming a developed nation.
The 16th Finance Commission, established under Article 280 of the Constitution, is responsible for determining the distribution of funds between the central and state governments.
Addressing the gathering, Chief Minister Stalin said, “On behalf of Tamil Nadu and its people, I extend a warm welcome to the Chairman and esteemed members of the 16th Finance Commission. I firmly believe that the commission’s recommendations should align with the expectations of all Indian states. These recommendations will play a crucial role in transforming India into a developed country while strengthening its federal structure.”
Stalin expressed concerns over the deteriorating financial situation in the state due to the increasing financial burden on state governments for implementing various schemes.
He stressed the need to increase the central tax share allocated to states to 50%, which, he argued, would enable states to implement developmental projects effectively.
The Chief Minister said that reduction in the central tax share allocated to states and continuous increase in the state’s financial contribution to centrally sponsored schemes implemented jointly with the Union government were the two primary reasons adversly affecting the financial health of Tamil Nadu.
He noted that while the Finance Commission had recommended increasing the central tax share for states to 41%, the Union government had only provided 33.1% in the past four years.
Stalin said that the frequent occurrence of natural disasters, the rising number of elderly citizens and the financial and infrastructural demands of rapid urbanisation were three factors affecting the growth of Tamil Nadu.
He explained that Tamil Nadu has been severely affected by cyclones, torrential rains, and flooding, which have damaged lives, property, livelihoods, and infrastructure.
He emphasised that significant funds are needed for relief and restoration efforts, which limits the state’s ability to allocate resources for developmental and welfare initiatives.
Stalin urged the Finance Commission to ensure adequate financial support for disaster relief and infrastructure restoration.
Additionally, the Chief Minister stressed the need to make investments in various sectors over the next decade to address the growing needs of the elderly population in the state.
He also requested the Finance Commission to recommend increased funding for urban local bodies, particularly in cities like Chennai, to meet the challenges of urban development and population growth.
