Expressing serious concern over the continued decrease in the allocation of the state’s share from the tax revenue, Chief Minister and ruling DMK president MK Stalin on Monday urged the Finance Commission to enhance it to 50 per cent from the present 41 per cent and said the present method appears to be punishing a developed state like Tamil Nadu.

At a meeting with the Chairperson and members of the 16th Finance Commission, the Chief Minister called for a new model of sharing tax revenue which does not hinder the growth of developed states. Share from the central tax pool should be uniform unlike the current system which affects the effective functioning of the state, he said, adding that Tamil Nadu which had faced natural disasters, finds it very difficult to earmark funds for developmental works.

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In his address, Stalin drew attention to three important challenges that the state has been facing: impact of natural disasters, rise in the elderly population and the demands of rapid urbanisation. Natural disasters like cyclones and torrential rains have not only deprived the people of their property and livelihood but have caused huge damage to public infrastructure.

The steady increase in the elderly population has its impact on the state’s demography, the Chief Minister said and pointed out that the average age of the population as of now stood at 36.4 years, which is 9.5 years higher when compared to Uttar Pradesh. “By the time the XVI Finance Commission completes its tenure, the average age of the population in Tamil Nadu would be 38.5 years. It would by then emerge as the state with the highest elderly population in the country,” he explained adding that in such a situation, it becomes necessary to provide timely social welfare measures for the elderly without which the state could not continue the developmental path.

On the state witnessing rapid urbanisation, Stalin said this posed a significant challenge in mobilising and allocating funds for creating necessary urban infrastructure and providing basic amenities. With land and water resources being limited, he requested the Finance Commission to recommend more funds for urban local bodies like Chennai.

Chairman of the 16th Finance Commission Arvind Panagariya and the members are on a four-day visit to the state.