Tamil Nadu Chief Minister M.K. Stalin Proposes Increase in States’ Tax Pool

• Tamil Nadu Chief Minister M.K. Stalin proposes a 50% increase in the States’ share in the tax pool.

• He argues that this increase would allow states to implement development projects and function with financial autonomy.

• Despite the increase in the share of states in the tax pool to 41%, only 33.16% has been shared with the States in the past four years.

• He also cites the decrease in devolution to the States and the increasing share of States in projects jointly implemented with the Union government as major factors adding to the States’ financial burden.