CM Stalin Seeks 50 Percent Tax Share for States, Cites Financial Strain

Chennai:Appealing for a 50 per cent share of the taxes collected by the Union Government to all the States, in an equitable fashion, and for an allocation of additional funds to better performing States, including Tamil Nadu, to ensure the overall development of the nation, Chief Minister M K Stalin said the lowering of fund allocation had come as a the financial strain to the State. Complaining about the increased financial burden on the States due to the additional expenses that the States had been made to bear with for projects The devolution of the Union Government’s tax was only 33.16 per cent, contrary to the recommendation of 41 per cent, in the last four years, which along with the increase in the State’s share in the projects implemented jointly by the State and Union Governments had led to the State’s financial position taking a beating, he said. Apart from the Finance Commission Chairman Arvind Panagaria, members Ajay Narayana Jha, Annie George Mathew and Manoj Panda took part in the meeting held at the Secretariat when the Chief Minister said that though the Constitution had defined the responsibilities of the Union and State Governments, the role of States in devising schemes for the progress of key sectors health, education, social welfare and agriculture was with the States. Such a move would place Tamil Nadu in a better position to execute developmental projects as per needs and also enable functional autonomy with regard to financial management, Stalin said.