3 weeks ago
Tamil Nadu Assembly passes resolution urging fair tax devolution
Tamil Nadu is a state in India where people pay taxes that help the whole country.
Some of that tax money goes to the central government, which shares a part of it back with the states.
Tamil Nadu's leaders think the state does not get back a fair amount of the money it contributes.
So the Tamil Nadu Assembly, the group that makes laws for the state, passed a resolution about this.
The resolution is a formal request asking the central government to share tax money more fairly.
It says the sharing should be transparent and fair, and should consider how much each state contributes.
One leader, Thangam Thennarasu, wanted the resolution to ask for 50 percent of the tax money to go to states.
He said that for every 1 rupee Tamil Nadu gives, the central government returns only 29 paise.
Another leader, Edappadi K Palaniswami, said his party supports the resolution and fair sharing of funds.
The resolution urges the central government to protect the financial interests of Tamil Nadu in the future.
The Tamil Nadu Assembly passed a resolution urging the Centre to ensure the state's due share of financial devolution, invoking the principle of fiscal federalism.
The resolution calls for a transparent, objective and equitable methodology that recognises states' contribution, fiscal effort, governance performance and developmental needs.
The Finance Minister said Tamil Nadu has made significant contributions through economic growth, industrial development, exports and tax collections, and that states performing well in population control should not be disadvantaged.
DMK leader Thangam Thennarasu called the resolution general in nature and proposed an amendment seeking 50 per cent of the divisible pool of taxes, saying Tamil Nadu gets only 29 paise for every 1 rupee it contributes.
AIADMK General Secretary Edappadi K Palaniswami supported the resolution, saying his party has repeatedly insisted on adequate financial devolution.
- Who
- The Tamil Nadu Assembly, including the Finance Minister, DMK leader Thangam Thennarasu and AIADMK General Secretary Edappadi K Palaniswami
- What
- Passed a resolution urging the Centre for fair and equitable devolution of central taxes consistent with fiscal federalism
- Where
- Chennai, Tamil Nadu
- When
- Friday (specific date not mentioned in the report)
- Why
- Tamil Nadu says it contributes substantially to the national economy but receives only 29 paise for every 1 rupee it contributes to the Union Government
DMK's Thangam Thennarasu stance
Government resolution and AIADMK stance
Specificity of the devolution demand
DMK's Thangam Thennarasu stance
The resolution is 'general in nature'; it should be amended to explicitly seek 50 per cent of the divisible pool of taxes collected by the Centre.
Government resolution and AIADMK stance
The resolution should remain general, urging the Centre to adopt a transparent, objective and equitable devolution methodology without fixing a specific percentage.
Record of Centre-State fund flow
DMK's Thangam Thennarasu stance
Tamil Nadu is neglected in devolution despite its immense contribution and fiscal discipline, getting only 29 paise for every rupee contributed.
Government resolution and AIADMK stance
Edappadi K Palaniswami noted that during AIADMK's tenure the Union Government released the funds required by states, enabling schemes to be implemented, and backed the resolution.
Key facts
- Legislative body
- Tamil Nadu Assembly
- Location
- Chennai, Tamil Nadu
- Resolution aim
- Fair and equitable devolution of central taxes consistent with fiscal federalism
- Key principle cited
- Transparent, objective and equitable methodology for devolution
- Tamil Nadu's claimed return
- 29 paise for every 1 rupee contributed
- Amendment proposed by DMK
- Devolve 50 per cent of the divisible pool of taxes to states
- Party support
- AIADMK (Edappadi K Palaniswami) supported the resolution
Quotes
Former Finance Minister and DMK leader Thangam Thennarasu
Former finance minister and DMK party leader
“"Tamil Nadu has continued to make a significant contribution to the national economy through sustained economic growth, industrial development, exports, sound financial management, and its substantial contribution to taxes collected by the Union Government."”
theprint.in
“"The resolution, in its present form, is general in nature. The share of financial devolution should be fixed at 50 per cent based on the views already presented before the Finance Commission."”
theprint.in
AIADMK General Secretary Edappadi K Palaniswami
General Secretary of the AIADMK party
“"We have repeatedly urged the Union Government to ensure a fair distribution of funds between the Union and the States. We support this resolution."”
theprint.in
Sources
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