Tamil Nadu Assembly adopts unanimous resolution on fair share of Central tax devolution
The Tamil Nadu Assembly has passed a unanimous resolution urging the Union government to adopt a more equitable and transparent methodology for tax devolution. The state government argues that current criteria disadvantage states that have performed well in population control and human development.
Why it matters
This highlights the ongoing tension between state and central governments regarding fiscal federalism and the distribution of national resources.
The Tamil Nadu Assembly on Friday (August 7, 2026) unanimously adopted a government resolution urging the Union government to ensure the State receives its due share of financial devolution from the taxes contributed to the Centre, in accordance with the constitutional principles of fiscal federalism, equity, and fairness.
Moving the resolution, Finance Minister N. Marie Wilson called upon the Centre to adopt a transparent, objective, and equitable methodology for the devolution of Union taxes that “appropriately recognises the contribution, fiscal effort, governance performance, and developmental needs of the States.”
The resolution further urged the Union government to ensure that the criteria adopted for tax devolution do not place any State at a comparative disadvantage for its achievements in population stabilisation and human development.
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