Southern Zonal Council meet: Tamil Nadu CM Vijay seeks fair, equitable treatment of southern States from Centre
Tamil Nadu Chief Minister C. Joseph Vijay addressed the Southern Zonal Council, advocating for more fiscal autonomy and equitable tax devolution for southern states. He emphasized the need for states to retain flexibility in tax rate determination following the implementation of GST.
Why it matters
This highlights ongoing tensions between state governments and the central government regarding fiscal federalism and economic policy in India.
Southern States seek not preferential treatment, but fair and equitable treatment, one that respects fiscal autonomy, rewards performance alongside equity, and enables high-performing States to continue investing in the infrastructure, innovation, and human capital that drive India’s growth, said Tamil Nadu Chief Minister C. Joseph Vijay on Thursday (August 20, 2026).
At the 31 st meeting of the Southern Zonal Council held at Mamallapuram and presided over by Union Home Minister Amit Shah, Mr. Vijay said the southern States have consistently been among the principal drivers of the nation’s economic growth. As India prepares for the next Finance Commission, the fiscal devolution framework must recognise both need and performance. States that have invested in development, fiscal discipline, and demographic transition should not be placed at a disadvantage, he said.
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