Tamil Nadu Slams Centre Over Tax Revenue Cut

Tamil Nadu slams the Centre over plans to cut States’ share of tax revenue. The Finance Minister questions if this is how well-performing States are treated.

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Reports suggest the Finance Commission may lower States’ share from 41% to 40%. Tamil Nadu’s Finance Minister calls this move unfair and demands fair allocation.

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Tamil Nadu argues that it contributes more to the national economy than it receives. The Finance Minister insists that States should get a 50% share of tax revenue.

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Many States have joined Tamil Nadu in demanding a higher tax share. They argue that reducing allocations will affect development projects and essential services.

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The Union government claims resource distribution must support weaker States. Tamil Nadu contends that this approach penalizes growth-oriented States.

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With the Finance Commission set to decide, Tamil Nadu urges the Centre to reconsider. A fair revenue-sharing model is crucial for financial stability.

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