Chennai. The Tamil Nadu government has taken a significant step to strengthen the state’s economic position and boost revenue. A six-member committee, headed by renowned economist and former Deputy Chairman of the Planning Commission Montek Singh Ahluwalia, met Chief Minister M.K. Stalin at the Chennai Secretariat on Thursday. Measures to enhance the state’s tax and non-tax revenue were discussed in detail during the meeting.
The state government constituted this committee with the aim of strengthening Tamil Nadu’s financial resources. The committee has been tasked with studying existing revenue sources, exploring new avenues, and offering concrete suggestions to increase income. During the meeting, committee members deliberated with Chief Minister Stalin on the state’s economic challenges and potential solutions.
The committee’s primary objective is to increase the Tamil Nadu government’s own tax revenue. Additionally, it will study ways to boost non-tax revenue, develop new income sources, and mobilize additional revenue through government undertakings. The committee will provide policy recommendations to the government, which will help improve the state’s financial health.
Apart from Montek Singh Ahluwalia, the six-member committee includes several economic and tax experts. The members are economist K.P. Krishnan, tax policy expert Arvind Modi, former Chairman of the Central Board of Indirect Taxes and Customs (CBIC) Najib Shah, Tamil Nadu Finance Secretary and Additional Chief Secretary M.A. Siddique, and Dr. M. Suresh Babu, Director of the Chennai Institute of Development Studies.
The government believes that increasing revenue is crucial amidst rapidly expanding development activities, welfare schemes, and rising expenditure on infrastructure. The state government requires greater financial resources to implement its schemes effectively. In this context, the committee’s recommendations could provide a new direction to Tamil Nadu’s economic policy.
The committee has also invited suggestions from the general public and experts. The government intends to incorporate the views of the public, industries, and economic experts—and not rely solely on administrative-level measures—to boost revenue. The committee will prepare its report based on suggestions received from the public.
The state’s tax revenue primarily comprises Goods and Services Tax (GST), stamp duty, registration fees, revenue from liquor, and other taxes. Non-tax revenue includes income from government services, fees, fines, and earnings from public sector undertakings. The committee will review all these areas and suggest measures for improvement.
Tamil Nadu is one of the country’s leading industrial states, holding a strong position in sectors such as automobiles, electronics, IT, manufacturing, and services. The government aims to ensure a steady increase in state revenue alongside the growth of economic activities.
Experts believe that to boost revenue, it is essential to make the existing tax system more effective, curb tax evasion, enhance digital monitoring, and better utilize government assets, rather than simply imposing new taxes. The committee may examine all these aspects.
Montek Singh Ahluwalia has long been associated with India’s economic policies. Given his experience, the Tamil Nadu government expects the committee to offer practical and long-term suggestions to strengthen the state’s financial position.
Following a meeting with Chief Minister M.K. Stalin, the committee will now proceed with its study. In the coming period, it will formulate recommendations after consulting various state departments, economic experts, and stakeholders. The government hopes that these suggestions will enable Tamil Nadu to strengthen its revenue base and further accelerate its development initiatives.
