Stalin flags T.N.’s three major challenges to XVI Finance Commission

Tamil Nadu is facing three primary challenges, namely impact of natural disasters, a rise in the number of the elderly, and the needs arising due to rapid urbanisation, Chief Minister M.K. Stalin said on Monday (November 18, 2024), and requested the XVI Finance Commission to make recommendations that would help the State overcome these challenges financially.

Tamil Nadu is facing three primary challenges, namely the impact of natural disasters, a rise in the number of the elderly, and the needs arising due to rapid urbanisation, Chief Minister M.K. Stalin said on Monday (November 18, 2024), and requested the XVI Finance Commission to make recommendations that would help the State overcome these challenges financially.

“Tamil Nadu has been affected severely due to the impact caused by natural disasters. Not only the lives, property, and livelihood of the people were affected by many cyclones, torrential rains and flooding, the infrastructure facilities of the State were also severely hit,” Mr. Stalin said during his speech at a meeting with the chairperson and members of the XVI Finance Commission in Chennai.

As there was a requirement to spend a huge quantum of funds to overcome the impact of such natural disasters, funds due to various development and welfare initiatives could not be allocated, he said, and further advocated for recommendations from the Finance Commission that would ensure funds to State governments for undertaking relief and restoration measures.

Flagging the increase in the elderly population and the impact it has on the State’s demography, Mr. Stalin said the average age of the population in Tamil Nadu stood at 36.4 years at present, which was 9.5 years higher compared to that of 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 said.

Such a scenario reflected the swift decrease in the benefits received by Tamil Nadu in line with its population hence far and the increasing need to ensure social welfare measures for the elderly in Tamil Nadu, he said. “Tamil Nadu had to make investments in various sectors to ensure economic development in the coming 10 years to fulfil the needs of the increasing elderly in the State. If not, Tamil Nadu would turn out to be a State with high elderly population but it could attain the status of being a developed State.”

Tamil Nadu was among the States that witnessed rapid urbanisation in the country and one of the significant challenges it faced was mobilising funds necessary to create various urban infrastructure, he said. Referring to limited land and water resources and increasing population, he requested the Finance Commission to recommend for more funds for urban local bodies, especially in cities such as Chennai, to ensure basic amenities.

The financial requirements of the States were consistently increasing but they faced many “obstacles” in generating revenue since the rolling out of the GST regime, he said, and added that the role played by the Finance Commission over the devolution assumed significance.