‘Tamil Nadu gives more than what it receives’: Financial planner reignites debate on fiscal federalism

FINANCIAL INFORMATION D MUTHUKRISHNAN The record of the Social Media Platform has caused a fresh debate on the Center-State Financial Relations, in particular, the economic contribution of Tamil Nadu to the Union’s government.

Mutukrishna questioned the frequent statements of the center on the financial aid provided to Tamil Nadou when it seems that the state was income that creates the Union for the government. He claims that financial exchanges in the federal structure should be considered mutual than one-sided assistance.

“Be IT Agriculture or Minister of Finance, they say how much they give to Tamil Nadu. But there must be a sense of justice.

Mutukrishnan’s comment reflects a greater process on fiscal federalism in India when economically stronger states often contribute to taxes and grants more. Tamil Nadu, being one of India’s most industrial and high-income countries, is one of the people who significantly contribute to the national exchange rate than they receive by central means.

The Financial Expert noted that the position of the center often seems to be kind of being kind to Tamil Nadu when the state plays a big role in benefiting other states.

“So why does the center continue to point out what is it doing for Tamil Nadu?”

Tamil Nadu, together with other developed countries, such as Maharashras and Carnatory, has previously expressed concerns about the distribution of income. Experts claim that higher tax investment countries receive disproportionate low allocations compared to their investments, which leads to a more transparent and balanced fiscal policy requirements.

Mutukrishnan’s post reigned about the need for transparency between the center and states, ensuring that the placement is not part of unilateral generosity, but as part of a structural economic system.

Last month, Reuters reports that the government wants to reduce the Central Tax Revenue, which defines the current 41% of the current 41% with the states.