Archive · 27 Jul 2026
TN Forms Revenue Panel Led by Montek Singh Ahluwalia
The Tamil Nadu government has set up a committee led by economist Montek Singh Ahluwalia to find ways to increase the state's revenue.
The committee will look at improving tax collection, reducing leakages, and finding new sources of income.
The government says the state's revenue has been decreasing due to administrative issues and corruption.
The committee has three months to submit its recommendations.
Tamil Nadu government forms a six-member Revenue Augmentation Committee headed by Montek Singh Ahluwalia.
The committee aims to suggest measures for sustainable augmentation of tax and non-tax revenues.
The committee will examine revenue leakages, tax rates, and new revenue sources.
The state's SOTR-to-GSDP ratio fell to 5.45% in 2025-26, the lowest in two decades.
The committee has been given three months to submit its report and recommendations.
- Who
- Tamil Nadu government
- What
- Formed a six-member Revenue Augmentation Committee
- When
- July 24, 2026
- Where
- Tamil Nadu, India
- Why
- To recommend measures for sustainable augmentation of tax and non-tax revenues
Government Perspective
Critics' Perspective
Need for Revenue Augmentation
Government Perspective
The government believes the panel will help identify new revenue sources and improve fiscal self-reliance.
Critics' Perspective
Critics argue that the panel's recommendations may lead to increased taxation and burden on citizens.
Revenue Leakages and Corruption
Government Perspective
The government attributes revenue decline to administrative choices, leakages, and corruption.
Critics' Perspective
Critics suggest that the government should focus on better governance and reducing corruption rather than forming new panels.
- Committee Head
- Montek Singh Ahluwalia
- Committee Members
- K.P. Krishnan, Arbind Modi, Najib Shah, M.A. Siddique, M. Suresh Babu
- State Own Tax Revenue (SOTR)-to-GSDP Ratio
- 5.45% in 2025-26
- Estimated Annual Revenue Forgone
- ₹1.23 lakh crore
- Committee Formation Date
- July 24, 2026
- Report Submission Deadline
- Three months from formation