Finance Commission Chief Highlights Southern States' Ageing Concerns

Finance Commission Chairman Arvind Panagariya highlighted the challenges of falling fertility rates in southern states, which impact dependency ratios and populations. Andhra Pradesh Chief Minister N Chandrababu Naidu presented these issues to the Commission, suggesting changes in tax devolution criteria to support regional demographics and economic growth.

Southern states face an impending demographic challenge as fertility rates drop below replacement levels, leading to ageing populations and increased dependency ratios. This issue was spotlighted by Sixteenth Finance Commission Chairman Arvind Panagariya during a press briefing.

The Commission is currently on a four-day tour in Andhra Pradesh to discuss fiscal strategies with the TDP-led government. Chief Minister N Chandrababu Naidu emphasized the need for revised funding metrics that account for dwindling population growth, urging a rethink of the demographic performance weight.

As the state of Andhra Pradesh calls for increased fiscal devolution and a recalibration of tax criteria, the Commission, under Panagariya, assures consideration of these suggestions amidst ongoing consultations with central ministries.

(With inputs from agencies.)