Page 3 - Latest Updates on 16th Finance Commission

16th Finance Commission will submit report to Centre by Oct 31: Chairman

Chairman of the Sixteenth Finance Commission Dr. Arvind Panagariya on Monday said the commission will submit its report to the central government by October 31. Panagariya said this in a meeting of the commission held here with Chief Minister Pushkar Singh Dhami. The chairman praised Uttarakhand for moving ahead rapidly on the development front and said that in view of the difficult geographical conditions, extensive discussions will be held to find solutions to the challenges being faced by other hill states, including Uttarakhand. Earlier in the meeting, CM Dhami presented his views on the financial situation, challenges and development needs of the state. He requested the Finance Commission to provide suitable compensation in keeping with the spirit of 'environmental federalism' in view of Uttarakhand's 'eco service cost', increase the weightage of forest cover in 'tax-devolution' to 20 per cent and consider special grants for proper management and conservation of forests in the

Resource allocation: Finance Commission needs to address multiple issues

The second important issue raised by some states was that of the increased use of cesses and surcharges by the Union

Ajay Narayan Jha steps down from Finance Commission with 6 months to go

The former finance secretary was appointed secretary, expenditure, in the Ministry of Finance in October 2017 and remained in office until February 2019

Bihar makes fresh demand for special status before 16th Finance Commission

The Nitish Kumar government in Bihar on Thursday made a fresh demand for special category status before the 16th Finance Commission, members of which are currently on a tour of the state. This was disclosed by Arvind Pangariya, the renowned economist who is also the chairman of the commission, while interacting with the media after receiving the state government's memorandum. "It was a lengthy presentation made in the presence of the chief minister, his deputies and other cabinet colleagues, besides top officials... prior to Bihar, we have covered 20 states. Our tours began in June last year, after the Election Commission lifted the Model Code of Conduct imposed during Lok Sabha polls," Pangariya said. "The demand for a special category status is part of the memorandum of the Bihar government... (but) this is not something that the Finance Commission has jurisdiction over," he said. "At the moment, no state has special category status. It used to be under the Planning Commission. .

Raise state's share in central taxes to 48%: MP CM to Finance Commission

Madhya Pradesh Chief Minister Mohan Yadav on Thursday asked the 16th Finance Commission to increase the share of states in the Central taxes pool from the current 44 per cent to 48 per cent to ensure the nation's development. Developed India cannot be built without a developed Madhya Pradesh, Yadav said while addressing a meeting with the chairperson and members of 16th Central Finance Commission at Kushabhau Thackeray International Convention Centre here. "The strength of the nation lies in the strength of the states. Therefore, the share of the states in Central taxes and revenue receipts, i.e. grants, must be increased. By getting more financial grants from the Union government, the states will be able to achieve their long-term goals in the short term," the CM said. Asserting that MP was progressing rapidly in the fields of agriculture, infrastructure, education, health, forest, tourism, urban development and industrial development, he said strong financial support/grants are ..

CAG Murthy, Arvind Panagariya hold consultation on public finance, revenue

Comptroller and Auditor General of India (CAG) K Sanjay Murthy on Wednesday held consultations with Chairman of 16th Finance Commission Arvind Panagariya on various aspects of public finance, including untapped revenue sources, GST administration, and standardisation of accounting practices in all tiers. The high-level consultation formed a critical part of the commission's ongoing assessment of the financial landscape of the Centre and states, the CAG office said in a release. The deliberations mainly focused on three key areas - Union and state finances, local bodies, and Public Sector Enterprises (PSEs). The Union, the states, local bodies and the PSEs are under the audit of the CAG. In addition, the CAG maintains the accounts of the states. The CAG shared various audit findings for the Union and states in different sectors, fiscal challenges and stress points, including the gap between expenditure and non-debt receipts for the Union and states combined. The key areas of concer

Centre releases Rs 699 crore grants for rural local bodies in West Bengal

The Centre has released the 15th Finance Commission Grants for the Financial Year 202425 for Rural Local Bodies in West Bengal, which includes the second installment of Untied Grants of Rs 694.4 crore and the withheld portion of the first installment of Untied Grants of Rs 4.9 crore. According to the Panchayati Raj Ministry, these funds are for the 21 eligible District Panchayats, 326 eligible Block Panchayats and 3,220 eligible Gram Panchayats. The Ministry said the Untied Grants would be utilised by Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) for location-specific needs under the Twenty-Nine (29) Subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. The Tied Grants can be used for the basic services of sanitation and maintenance of ODF status, and this should include management and treatment of household waste, human excreta and fecal sludge management in particular and supply of drinking water, ...

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