Page 2 - Finance Commission

Need 7.3% per capita income growth for 'Viksit Bharat' by 2047: Panagariya

The 16th Finance Commission Chairman Arvind Panagariya on Saturday said India's aim to become a developed nation by 2047 is a "realisable ambition" for which the country's per-capita income needs to grow at 7.3 per cent in dollar terms to USD 14,000 over the next 24 years. India's per-capita income, in 2023-24 dollar terms, is about USD 2,570, which is very low compared to countries like South Korea, Taiwan, United States, and other European nations. Speaking at the 49th Civil Accounts Day, Panagariya said with the existing technology, coupled with reasonable capital accumulation and skill acquisition, India has enormous room for catching up with the per-capita income of developed nations and meet World Bank's definition of USD 14,005 per capita income annually. Today, our per capita income in dollars is about USD 2,500. To get to USD 14,000 in 24 years or by 2047-48, what growth rate do I need for per capita income? my per capita income from 2023-24 onward has to grow annually at

Odisha asks Rs 12.59 trn from Finance Commission, 50% divisible pool share

The Odisha government on Thursday requested Rs 12.59 lakh crore from the 16th Finance Commission and sought an increase in the state's share of the central divisible pool to 50 per cent from the current 41 per cent. Chief Minister Mohan Charan Majhi made the request during a meeting with the Finance Commission team, led by Chairman Aravind Panagariya, emphasising that the demand was crucial for the state's development, particularly as it aims to become one of the country's developed states by 2036, marking its centenary. Addressing a press conference, Panagariya said many states including Odisha have demanded increasing their share to 50 per cent from the central divisible pool. The 16th Finance Commission is mandated to submit its report with the President of India in October 2025 and make its recommendation after visiting 28 states and taking views of all the stakeholders. "The commission has visited several states and held consultations. Maximum states demanded an increase in the

States must raise tax devolution concerns with Finance Commission: FM

With southern states voicing concerns over 'unfair' tax money devolution, Finance Minister Nirmala Sitharaman has said the states have to engage and highlight their concerns with the 16th Finance Commission, whose recommendations will decide how the funds are divided. Population is one of the criteria used by Finance Commissions to decide how the tax revenues are divided. Southern states, which have managed to check the rise in population, feel they get a raw deal when compared to the northern states with much larger population growth. In an interview with PTI, Sitharaman said the central government does not decide on the devolution formula. The devolution of taxes is made in accordance with the recommendations of the Finance Commission and the aggrieved southern states should approach the panel for change in parameters. "It is for the states to engage with the Finance Commission to express their concerns about the parameters based on which the tax devolution principles are laid dow

Sikkim CM Tamang seeks 'tailored' support from Finance Commission

Sikkim Chief Minister Prem Singh Tamang on Monday sought 'tailored' support from the 16th Finance Commission in view of the Himalayan state's unique challenges, achievements and aspirations. The full team of the 16th Finance Commission, led by its chairman Arvind Panagariya, met the Sikkim chief minister at the state secretariat. "I emphasised Sikkim's unique challenges, achievements and aspirations while calling for tailored support from the 16th Finance Commission to ensure sustainable growth for our people", Tamang said in a social media post after meeting Panagariya and the members of the Finance Commission team. Tamang said that he highlighted Sikkim's remarkable progress, including the highest per capita income in the region, significant growth rates, and the state's role as a global custodian of biodiversity and a hub for climate change mitigation to seek additional financial support from the 16th Finance Commission. The Sikkim CM also underlined critical challenges like roa

16th Finance Commission team to arrive in Tripura on Jan 29: Official

The full team of the 16th Finance Commission, headed by its chairman Arvind Panagariya, is expected to arrive here on January 29 for a four-day visit to Tripura, an official said on Saturday. During their visit to the northeastern state, they will meet Chief Minister Manik Saha and hold discussions with government officials and other stakeholders to learn about the wish list of Tripura, state Finance Secretary Apurba Roy told PTI. "The Finance Commission's full team will hold meetings with top officials of the Tripura administration to learn about the state's wish list," Roy said. The commission will also hold meetings with representatives of local urban bodies, including Agartala Municipal Corporation (AMC), Tripura Tribal Areas Autonomous District Council (TTAADC), and delegations from the political parties to know their demands and views. The panel will examine the fund requirement for the state's non-plan expenditure for the five years starting from April 1, 2026, another offic

Kerala seeks 50% share of divisible tax pool: Central Finance Committee

The request comes as the state seeks a larger share of the Rs 616.41 crore divisible pool

Finance Commission team arrives in Kerala for 3-day visit

Members of the 16th Finance Commission, led by former NITI Aayog vice chairman Arvind Panagariya, have reached Kerala for a three-day visit, as part of holding consultations for preparing its report. The team was accorded a reception at the international airport here on Sunday under the aegis of state Finance Minister K N Balagopal. According to Balagopal, a detailed memorandum has been prepared to be submitted to the commission. Kerala would make the presentation with proposals to resolve the "imbalance" in the distribution of tax share to the state, he had said, adding that the state would also convince the Finance Commission regarding the steps to be taken to provide the deserving grants on time. On Monday, the Commission would visit Thiruvarpu and Aymanam panchayat areas in Kottayam, and by evening, they will arrive at Kovalam, an official statement said. On Tuesday at 9.30 am, Chief Minister Pinarayi Vijayan will officially receive the Commission's chairman and members at the

A comprehensive review: GST Council needs to address all aspects

The idea should be to simplify the structure. This will increase compliance and reduce disputes

West Bengal govt urges 50% tax devolution in submission to 16th FC

The 16th Finance Commission has been consulting states since mid-February before making recommendations on the states' share in central taxes

Indian states spending below NHP-recommended healthcare budget: Data

While Goa and Delhi are among the few states that exceed the national average, with Goa meeting the 8 per cent target, others like Uttar Pradesh and Bihar allocate less than 6 per cent to healthcare

Southern states urge 16th FC to address cess and surcharge impact

Finance Commissions use different yardsticks to recommend transfer of funds from the Centre to the states. These generally are income distance, population, area, etc

TN asks Finance Commission to consider 'income distance' for tax devolution

State also wants weightage increased for contribution to national GDP and urbanisation

CM Stalin asks 50% share of Central taxes for projects of Tamil Nadu

Expressing concern over the decrease in devolution of Central funds and increasing financial burden on Tamil Nadu to bear additional expenses for Centrally-sponsored projects, Chief Minister M K Stalin on Monday sought the union government to provide a 50 per cent share of Central taxes to Tamil Nadu. Additional funds should be allocated to performing states like Tamil Nadu, considering the overall development of the country. "A new approach should be adopted so that developing states like Tamil Nadu are not affected by decrease in Central allocation. Steps should be taken to strengthen the federal structure of India," Stalin said during his meeting with the Chairman and members of the 16th Finance Commission at the Secretariat here. He said the Commission's recommendation should fulfill the needs and meet the aspirations of Tamil Nadu and ensure its greater contribution towards making India an economic superpower. Only the states formulate and execute programmes for the developmen

Finance Commission open to view alternate index for devolution: Panagariya

The Finance Commission is open to considering alternate index for devolution of funds to states with regard to natural calamities and state-specific issues, Chairman of the 16th Finance Commission Arvind Panagariya said here on Monday. The problems arising due to natural disasters were beginning to get more and more acute, he said and pointed out that the 15th Finance Commission has recommended partial devolution of funds. "The Commission is very much open to looking at alternate ways of measuring disaster relief, provided we can do it across all the states. The index has to be transparent and acceptable," Panagariya told reporters after a long session with the Tamil Nadu government earlier in the day. Apart from Tamil Nadu, states like Himachal Pradesh which the Finance Commission had consulted, put forth a similar view. "Let me look into it if any particular type of disaster is not included," the Chairman said. Also, he said that gap between the richer and poorer states widened.

Local rural bodies should raise their own resources, says Arvind Panagariya

Several states do not have proper state finance commissions (SFCs) for fund distribution to urban local bodies and panchayati raj institutions

Centre may urge states to cut delay in formation of finance commissions

Today's meet may focus on facilitating dialogue to enhance efficiency of SFCs

Nagaland CM Rio seeks over Rs 40,000 cr from 16th Finance Commission

Nagaland Chief Minister Neiphiu Rio on Tuesday sought grants amounting to over Rs 40,000 crore from the visiting 16th Finance Commission to compensate for the capital deficit. Addressing a meeting with the members of the Commission here, Rio also appealed to the Commission to work out an arrangement that will keep the northeastern state in good financial health to make it an important player in the nation's journey of progress and development. Projecting some of the requirements, Rio said Rs 9,000 crore and Rs 865 crore are needed to construct a 364 km highway along the state's border with Assam and an airport at Ciethu near here, respectively. The chief minister also proposed to the Commission that grants amounting to Rs 40,386.5 crore to compensate for the capital deficit to provide an enabling atmosphere for development so that the state can reduce dependence on Revenue Deficit Grants gradually. Rio informed the Commission that much progress has taken place in many key sectors o

16th Finance Commission team arrives in Nagaland on three day visit

Members of the 16th Finance Commission arrived in Nagaland on Monday on a three-day visit, an official said. The Finance Commission team comprising chairman Arvind Panagriya and members Ajay Narayan Jha, Annie George Mathew and Manoj Panda was received at Dimapur Airport by Deputy Chief Minister Y Patton and Chief Secretary J Alam. During the three-day stay, the Finance Commission team would hold a closed-door meeting with the chief minister, ministers and senior officers in Kohima on Tuesday. Other than the funds provided to the state through Centrally Sponsored Schemes (CSS), the state government is likely to present to the Commission, demands for grants-in-aid for the next five years, amounting to nearly Rs one lakh crore on various sectors, the official said. The sectors include revenue deficit grants, funds for local governments to empower the rural and urban local bodies, sector specific grants to supplement expenditures in sectors such as education and health and also ...

GDP share, per capita income: States showing no signs of convergence

There is a need for targeted and focused intervention to bring the lagging states up to speed as quickly as possible through Finance-Commission devolution or other means

5 non-BJP-ruled states' ministers to meet in Kerala for FC discussion

Ministers from five non-BJP-ruled states will meet here on Thursday to discuss key issues related to the 16th Finance Commission, as, according to them, the country grapples with economic federalism challenges. The meeting, hosted by Kerala, comes at a critical time when states face significant developmental and financial hurdles, according to a statement issued by the office of Kerala Finance Minister K N Balagopal here on Wednesday. The main objective is to present these challenges to the 16th Finance Commission, chaired by Dr A Arvind Panagariya, and explore potential solutions, it said. Kerala Chief Minister Pinarayi Vijayan will inaugurate the high-level conclave to be attended by top dignitaries, including Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, Karnataka Revenue Minister Krishna Byre Gowda, Punjab Finance Minister Harpal Singh Cheema and Tamil Nadu Finance Minister Thangam Thennarasu. Other notable participants include Leader of Oppositi