Tamil Nadu’s economic autonomy is declining.. Discussion on Center-State relations

The analysis of ‘Reclaiming T.N.’s Fiscal Autonomy’ states that Tamil Nadu’s financial autonomy is gradually decreasing. He explained that the increasing central control over the state’s revenue sources, the reduction in tax freedom after the implementation of GST, and the limited role of states in the distribution of central funds are issues of concern. He stated that the state government needs adequate financial freedom to continue its development programs and welfare schemes. He believed that the plans of the states are being affected due to excessive dependence on funds from the center. He suggested that there is a need to review the financial relations between the center and the state to strengthen the federal system.