India

Tamil Nadu CM MK Stalin Urges Increase In Central Tax Share To Address Financial Strain

Tamil Nadu Chief Minister MK Stalin raised serious concerns on Monday over the worsening financial situation in the state, caused by the constant increase in the state’s financial contributions towards various Union government schemes. Addressing the issue, CM Stalin emphasized the need for a rise in the central tax share allocated to states, suggesting that a 50% share would allow Tamil Nadu to effectively implement development schemes and better manage its financial resources.

In his remarks, Stalin pointed out the financial strain on state governments due to two key factors: a reduction in the central tax share and an increase in the state’s own share of funding for joint schemes with the Union government. These factors, he stated, have been placing a heavy burden on the finances of states like Tamil Nadu.

“The financial situation in states like Tamil Nadu is getting increasingly affected due to the continuous rise in the state’s financial share for the schemes implemented in collaboration with the Union government,” said Stalin. “On one hand, we are seeing a reduction in the central tax share, and on the other, there is an increase in the state’s contribution towards Union schemes. This has created a significant financial burden for state governments. The central tax share to states should be increased to 50%, which will allow states like Tamil Nadu to implement their own development schemes and manage finances more efficiently.”

While acknowledging the Finance Commission’s recommendation to increase the central tax share to 41%, CM Stalin expressed disappointment that the Union government had only allocated 33.1% to the states over the past four years.

“The state governments are doing their part to implement essential schemes for the growth of sectors like health, education, social welfare, and agriculture. However, we are constrained by our limited power to generate additional income to manage the growth of these sectors effectively,” Stalin added.

CM Stalin’s remarks came during his meeting with the 16th Finance Commission, where he praised the Commission’s recommendations. He welcomed the Chairman and members of the Commission and expressed hope that their recommendations would contribute to the economic advancement of India and reinforce the nation’s federal structure.

“I believe the recommendations of the 16th Finance Commission should fulfill the expectations of all Indian states and play a significant role in making India a developed country. Strengthening India’s federal structure through these recommendations will pave the way for balanced growth across states,” CM Stalin concluded.

(WITH ANI INPUTS)

ALSO READ: NIA Takes Over Key Manipur Violence Cases Amid Growing Unrest

Lavanya R

Recent Posts

Police Arrest Two In Spain In A Murder Case After Google Maps Images Gives Major Evidence, WATCH

The victim, whose name has not been released, was reported missing in November 2023 by…

1 min ago

BJP MLC C T Ravi Arrested For Offensive Remarks Against Minister Hebbalkar

A case was filed against BJP MLC C T Ravi under sections related to sexual…

3 mins ago

Who Is Fani Willis And Why Has Georgia Court Disqualified Her Over Trump Election Interference Case?

A Georgia appellate court has disqualified District Attorney Fani Willis from prosecuting President-elect Donald Trump…

10 mins ago

Billie Eilish Proud Of Completing Her Goal Of ‘Having Good SEX’ In 2024 Months After Vowing To Never Talk About Her Sexuality

This shift comes after the singer’s romantic history was often under public scrutiny, including her…

40 mins ago

Who Is Krypto The Superdog And When Did He First Appear In Comics? James Gunn New Superman Character Steals The Spotlight

David Corenswet will portray Superman, with Rachel Brosnahan starring as Lois Lane. The cast also…

1 hour ago

Superman Legacy Teaser Trailer: Why Is James Gunn’s Superman Beaten, Bruised And Bloody? Everything Decoded

The teaser sets high expectations for the DCU’s future, combining iconic characters, emotional depth, and…

1 hour ago