The recommendations of the Sixteenth Finance Commission have triggered sharp political debate across southern India. Variations in the proposed tax devolution among States have raised questions about equity and federal balance. Several southern governments have argued that the distribution does not adequately reflect their contribution to the national exchequer. Tamil Nadu voices concern Tamil Nadu has emerged as one of the most vocal critics of the proposed allocation. Its share has risen only marginally compared to the Fifteenth Finance Commission period, despite the State being among the country’s leading contributors in tax revenue. Therefore, the State government has expressed dissatisfaction, stating that the increase does not match its economic performance or fiscal discipline. Telugu States feel marginalised Meanwhile, both Andhra Pradesh and Telangana have flagged what they describe as continued neglect. Andhra Pradesh, still coping with post-bifurcation financial stress, has seen only a modest rise in its share. Telangana has also recorded limited growth in allocation, prompting concerns that fast-growing urban economies such as Hyderabad are not being adequately factored into the formula. Kerala sees sharp rise 16th Finance Commission

Southern States Flag Fiscal Bias – Tax Devolution Disparities Widen

Article Today, Hyderabad: The recommendations of the Sixteenth Finance Commission have triggered sharp political debate across southern India. Variations in the proposed tax devolution among States have raised questions about equity and federal balance. Several southern governments have argued that the distribution does not adequately reflect their contribution to the national exchequer. Tamil Nadu Voices…

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