Stalin Seeks National Consensus on Strengthening Federalism, Flags Concerns Over GST Reforms

Chennai, Aug 2025 : Tamil Nadu Chief Minister M.K. Stalin has reached out to chief ministers of various states and leaders of political parties, seeking their views on a questionnaire prepared by a committee set up by his government to examine Centre–State relations.

In a letter shared with the media, Stalin warned that successive constitutional amendments, central laws, and policies have steadily “tilted the delicate balance of powers in favour of the Central government.” He noted that several large ministries at the Centre duplicate state functions, while also influencing state priorities through conditions tied to Finance Commission grants, uniform guidelines for centrally sponsored schemes, mandatory approvals, and micromanagement of implementation.

“Today, we stand at a decisive juncture. The need of the hour is to re-evaluate these developments and create a future framework that strengthens true federalism,” Stalin wrote on Friday.

High-Level Committee and Questionnaire

To address the issue, the Tamil Nadu government constituted a high-level committee on Centre–State relations, chaired by former Supreme Court judge Justice Kurian Joseph. Other members include former Vice-Chancellor of the Indian Maritime University K. Ashok Vardhan Shetty and former Deputy Chairman of the Tamil Nadu Planning Commission M. Naganathan.

The committee has prepared an online questionnaire to gather inputs from all states and Union Territories, which was launched during a national seminar on Centre–State relations on August 23. Stalin urged state governments and political leaders to carefully study the questionnaire and provide detailed responses.

“Your active participation will be invaluable in shaping a document that reflects the collective will of all states and strengthens the federal foundations of our nation,” he said. Stressing that the initiative rises above party politics, Stalin appealed: “Let us together renew the federal spirit of our Constitution and bequeath to future generations a union that is strong and just, cohesive and truly federal.”

Concerns Over GST Reforms

Alongside the call for deeper federalism, Stalin also expressed strong concerns over the proposed Goods and Services Tax (GST) reforms. He emphasised that any changes must safeguard state revenues, warning that reforms undermining fiscal autonomy would “not help” states.

Stalin added that tax cuts under the proposed reforms should directly benefit common citizens rather than erode state finances. Sharing his views on social media after attending a meeting of finance ministers of opposition-ruled states in Delhi, he said the focus must remain on protecting state resources while ensuring fair and people-oriented decisions.

By linking Centre–State relations with fiscal autonomy under GST, Stalin has pushed the debate beyond immediate administrative concerns to the core question of India’s federal structure, urging collective action for a more balanced and cooperative Union.