Louder chorus now for hike in states' share of central tax revenue

Southern states like Kerala have held conclaves of Opposition-ruled states to demand a 50 per cent share for states

Addressing a press conference in Lucknow last week, Chairman of the 16th Finance Commission Arvind Panagariya said Uttar Pradesh (UP), like most other states, has called for the states’ share in the central divisible pool of tax revenue to be raised to 50 per cent from the current 41 per cent.

  The Bharatiya Janata Party (BJP)-ruled state joined the list of other states, including those ruled by the Opposition, to make such a demand.

  “The previous finance commission had set the (tax revenue) share at 41 per cent for states and 59 per cent for (the) Centre. That’s