The commission led by its chairman NK Singh, members – Anoop Singh, Ashok Lahiri, Ramesh Chand, and secretary Arvind Mehta along with other officials discussed key issues considering the development trajectory witnessed in the region. Tamil Nadu is the second State in southern India after Kerala to be visited by the commission.

The members of the commission are expected to meet Chief Minister Edappadi K Palaniswami today, before undertaking a field visit in Madurai. They will also visit the Dr APJ Abdul Kalam memorial in Rameswaram. 

Speaking to media persons after the meeting on Wednesday, NK Singh said, “We were greatly enriched by the discussions held with domain experts and economists. It has helped us to understand some necessary assumptions, which are necessary for the commission to come up with appropriate recommendations.”  

The commission received suggestions on the variables that needs to be considered while estimating the nominal GDP, risks and challenges which lie ahead in making projections for the period from 2020-2025.

It also got inputs on strengthening the framework to tackle global warming and climate change and treating those issues in a broader sense that includes aspects like adaptation and coastal erosion. 

During the meeting, the economists pointed out more investment in adaptation strategies will be helpful instead of focusing on mitigation alone, which seemed to be the trend at present. They underscored the need to reflect on a broader perspective of ecological preservation rather than just the forest cover.

The Finance Commission team also met with the representatives of various political parties, including the principal opposition DMK, to get their perspective.

Set fund limit based on GSDP-GDP ratio: DMK

The DMK on Wednesday demanded the 15th Finance Commission to set a minimum and maximum fund allocation limit for each State based on the ratio of Gross State Domestic Product (GSDP) to Gross Domestic Product (GDP).

In a statement issued to the media, the party also condemned the expansive mandate given to the commission in the Terms of Reference (ToR). 

“How can an unelected body such as the Finance Commission have the power to review the status of finances of duly-elected governments at the Centre and the States and recommend a fiscal consolidating roadmap,” questioned the DMK. 

The party expressed concerns over the fund allotted to the State. “People of Tamil Nadu are second to none in their patriotism or their desire to contribute to the development of fellow citizens across the country. However, the data shows that Tamil Nadu gets one of the lowest allocations per-capita from the central tax revenue pool,” read the statement.  

The party also said that in any democratic country, bound by the principle of federalism, there must be a fair fund allocation. 

“But in the last 25 years, there is a unilateral downward trajectory in allocation, cutting the share of the State by 40 percentage in proportional terms.” 

As per the data mentioned in the DMK statement, Tamil Nadu’s allocation in the 10th Finance Commission in 1994 was 6.637 percentage. But over the years, the share reduced to 4.023 per cent in the 14th Finance Commission, despite the State’s GSDP increasing substantially in the same period from 7.37 to 8.642 percentage.