Tamil Nadu–which is in an election year and runs India's most extensive welfare state–has rebelled against the devolution of financial power to the states, part of the decentralisation process put into motion by New Delhi.
"Tamil Nadu has been unfairly treated by the 14th Finance Commission with a drastic cut in the horizontal share from 4.969% to 4.023% of the general shareable tax pool and from 5.047% to 4.104% of the service tax pool," Tamil Nadu Chief Minister O Panneerselvam, who is also the Finance Minister, said while presenting the budget for 2015-16.
Panneerselvam said the government of Tamil Nadu is set to lose about Rs 35,485 crore ($5.72 billion) in the next five years due to changes in the Finance Commission recommendations.
"The State Government will be burdened with a heavy responsibility of providing additional share in the centrally-sponsored schemes from its own resources without getting adequate increased resource flow from the central government," Panneerselvam said.
Here is what the Finance Commission has recommended based on criteria and weights:
