Stalin calls for raising States’ share in divisible pool of taxes to 50%

Tamil Nadu Chief Minister M.K. “Only if the share of States was increased to 50% could they implement development projects as per their requirements and function with financial autonomy,” Mr. Stalin said in his speech, in the presence of the chairperson and members of the XVI Finance Commission, who are on an official visit to Tamil Nadu. Mr. Stalin further hoped that the XVI Finance Commission would ensure that the States get 50% from the divisible pool. “I would like to point out that the present devolution norms proves a punishment to Tamil Nadu, which has been a pioneer in the country in planning and administering various welfare programmes.” Though it was necessary to allocate funds for underdeveloped areas in the country, “only by allocating necessary funds to States that have been performing well on various fronts, could one ensure that they maintain their development and keep them on track. Contending that the 45 years of the devolution method adopted by the country has not yielded intended results, Mr. Stalin advocated that the Finance Commission should reconsider it and adopt a “new approach,” which would ensure that developed States were not affected while funds were being granted to underdeveloped States.