Tamil Nadu CM Stalin tables high-level panel report on Union-State relations, fiscal autonomy forms key theme

MK Stalin

• Tamil Nadu CM presents report on state power erosion in Assembly
• Report urges decentralization and greater fiscal autonomy
• Committee urges reforms to limit Governors' discretionary powers

Did our AI summary help?

Marking a significant political and constitutional moment in the wider debate on federalism, Tamil Nadu chief minister MK Stalin on Wednesday tabled the high-level committee report in the Assembly.

The tabling of the document comes at a time when the state is headed for the assembly elections in a few weeks from now. The issue of federalism forms the core of DMK's discourse as it positions itself against the Bharatiya Janata Party (BJP-led) Centre.

The report, submitted by a committee constituted by the state government, lays out an expansive critique of what it describes as the steady erosion of state powers and the growing centralisation of authority in New Delhi.

The document closely mirrors and reinforces the long-standing ideological position of the ruling Dravida Munnetra Kazhagam (DMK), which has historically argued that India’s federal structure has tilted excessively in favour of the Union at the expense of the states.

A key theme running through the report, reportedly is fiscal autonomy. It argues that states today face growing constraints on their ability to raise and deploy resources, even as their responsibilities in areas such as health, education, social welfare and infrastructure continue to expand.

The committee flags what it sees as an over-centralised tax framework and conditional transfers that limit states’ policy flexibility. It suggests that the imbalance between revenue-raising powers and expenditure obligations has made states structurally dependent on the Centre, undermining the spirit of federalism and distorting accountability at the state level.

The report also focuses on the role of constitutional authorities, particularly Governors, asserting that the office has increasingly become a source of friction rather than a neutral link between the Union and the states.

It argues that the manner of appointment and the scope for discretionary intervention have, in several instances, allowed Governors to influence or delay elected state governments, thereby upsetting the federal balance. The committee proposes institutional changes aimed at ensuring that Governors function strictly within constitutional limits and with greater sensitivity to the federal principle.

By placing the report before the Assembly, the Tamil Nadu CM framed it as both a diagnostic exercise and a call for national introspection. He underlined that the demand for enhanced state autonomy is not a transient political slogan but a foundational principle of the DMK’s politics, dating back to the early decades after Independence.