CHENNAI — In a major strategic push toward long-term fiscal health and self-reliance, the Tamil Nadu government has constituted a high-level Revenue Augmentation Committee headed by renowned economist and former Deputy Chairman of the Union Planning Commission, Montek Singh Ahluwalia.

The panel has been tasked with drafting comprehensive policy recommendations to boost the state's tax and non-tax revenues, plug systemic leakages, optimize tax structures, and uncover under-tapped fiscal streams. The move is aimed at creating sufficient fiscal room to fulfill the state's expanding developmental commitments.

High-Powered Advisory Panel

The multi-member committee brings together prominent experts from economic policy, tax administration, and academic research.

Chaired by Ahluwalia, the panel includes:

  • K.P. Krishnan, Chair Professor of Economics at the National Council of Applied Economic Research (NCAER)

  • Arbind Modi, Tax policy expert

  • Najib Shah, Former Chairman of the Central Board of Excise and Customs (CBEC)

  • M.A. Siddique, Additional Chief Secretary to the Tamil Nadu Finance Department

  • M. Suresh Babu, Director of the Madras Institute of Development Studies (MIDS)

Raja Gopal Sunkara, Joint Secretary to the Finance Department, will serve as the convener of the committee.

Focusing on Leakages and Structural Reforms

According to a Government Order (GO) issued by the Finance Department, the decision builds upon findings from the state's "White Paper on Fiscal Management." The document highlighted that recent declines across major tax bases—including GST, VAT, excise duties, and mining royalties—were largely driven by administrative gaps, enforcement vulnerabilities, and systemic leakages rather than an overall economic slowdown.

To address these vulnerabilities, the committee will evaluate comprehensive operational and structural changes. Key focus areas include:

  • Administrative & Technological Reforms: Leveraging technology and process overhauls to combat tax evasion and boost administrative efficiency across revenue-generating departments.

  • Non-Tax Revenue & Asset Monetization: Identifying untapped non-tax avenues, evaluating Public Sector Undertaking (PSU) dividend performance, exploring land and asset monetization, and rationalizing user charges.

  • Excise & Alcohol Regulation: Reviewing regulatory mechanisms and taxation structures on liquor to streamline state revenue security.

  • Tax Rate Rationalization: Assessing fee structures, exemptions, and compliance frameworks to ensure the state's revenue growth moves in lockstep with its broader economic expansion.

The committee will assemble at the direction of Chairperson Montek Singh Ahluwalia to submit actionable multi-year administrative and policy reform frameworks to the state government.