Tamil Nadu to table Assembly resolution seeking fairer share of central taxes
The Tamil Nadu government is likely to table a resolution in the Legislative Assembly today seeking a fair and equitable share of central taxes for
The Tamil Nadu government is likely to table a resolution in the Legislative Assembly today seeking a fair and equitable share of central taxes for the state. The resolution is expected to reiterate Tamil Nadu's demand for a larger share under the fiscal devolution mechanism, through which the Union government distributes a portion of its tax revenues among states. According to government sources, the resolution will urge the Union government to ensure a more equitable distribution of tax revenues to Tamil Nadu and reiterate the state's longstanding demand for a larger share in fiscal devolution.
It will also emphasise that the state's financial interests "will not be allowed to be compromised." Read Full Story The move comes amid the continuing debate over the formula used to distribute central taxes among states, with Tamil Nadu maintaining that progressive states with stronger economic performance and better population control should not be penalised in the devolution process. Successive state governments have argued that the existing formula disproportionately disadvantages southern states despite their significant contribution to the national economy.
The issue has gained prominence in recent years as several southern states have raised concerns over the Centre's tax devolution formula, arguing that states which have performed well on economic and demographic indicators should not receive a smaller share of central resources. The resolution is likely to trigger a fresh political debate over Centre-state financial relations, with the Tamil Nadu government expected to reiterate that ensuring a fair share of central taxes is essential to sustaining the state's development and welfare programmes while safeguarding its fiscal autonomy.
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