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Tamil Nadu 1 min read

16th Finance Commission: Tamil Nadu's Share in Central Taxes Rises to 4.097%

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From April 1, 2026, Tamil Nadu's portion of the net shareable Central tax pool will be 4.097% under the 16th Finance Commission, a slight gain of 0.44% over the 4.079% allotted by the 15th Commission. Budgeted receipts for 2026-27 stand at ₹62,530.65 crore, compared with ₹56,819.23 crore in the 2025-26 Revised Estimate. Haryana led with a 24.52% rise, followed by Kerala (23.74%) and Karnataka (13.27%), the only other double-digit gainers. Population's weight rose from 15% to 17.5%, a change unfavourable to southern States. Tamil Nadu posted the highest absolute subsidy, ₹78,453 crore, in 2023-24. Vertical devolution remains 41%, and the revenue deficit grants Tamil Nadu requested were not recommended.