On what constitutes populist or not, commission is hearing different viewpoints, it will need to consider this in totality taking everything into account, he added.
North versus South debate is misleading, he mentioned, as many states from other parts of the country are also expressing similar apprehensions as made by southern states like the issue of population date of 2011 etc.
It will be the endeavour of commission not to penalise the states doing well on demographic front as well as economic front while carefully balancing the equity and efficiency.
Acknowledging that there are issues with GST like rates and the compensation which may take some time to settle, he said that Commission will try to make realistic GST projections for states considering that 14% compensation will not be there for states in the last three years of award period of this commission.
It will also be a challenge to make revenue projections from GST for centre. Finance Commission is doing consultation with CBIC on GST.
Challenge arising out of urbanisation and resultant migration is a significant issue for tamilnadu which needs serious consideration as the urban centres are the growth engines for not only TN but for the country as well.
With achieving Total fertility rates less than replacement rate of population growth, rising percentage of ageing population will create new pressure on state finances and need specific care by the state.