Chennai

On Monday, Tamil Nadu Chief Minister M.K. Stalin met with Aravind Panagariya, Chairperson of the 16th Finance Commission, and its members to discuss key issues impacting the state’s financial health. Stalin urged the Commission to recommend an increase in the central tax share for states, more funding for urban local bodies, and greater support for disaster relief efforts.

Stalin welcomed the Commission members, emphasizing that their recommendations should benefit all states and help strengthen India’s federal structure, aiding the nation’s development. He expressed concern over Tamil Nadu’s worsening financial situation, largely due to the rising burden of implementing various central schemes. Stalin advocated for raising the central tax share for states to 50%, which would better enable states to fund developmental projects.

He pointed out that while the Finance Commission recommended a 41% central tax share, the state had only received 33.1% in the past four years. Stalin also highlighted the state’s struggles with frequent natural disasters, an aging population, and the challenges of rapid urbanization. He called for more funds for disaster relief and restoration efforts, as these have significantly affected the state’s ability to allocate resources for other initiatives.

Additionally, he requested increased financial support for urban local bodies, particularly in cities like Chennai, to address the growing demands of urbanization and population growth.