Finance Commission

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

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

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

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

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

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

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

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

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.

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

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

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

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 ...

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

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

The 16th Finance Commission is open to listening to the views of all states and consider all possibilities, including their grievance on facing a cut in central allocations despite better performance on the economy front, the Commission's Chairman Arvind Panagariya said on Tuesday. Panagariya, who is on a visit to Telangana along with the other members of the Commission as part of the panel's state visits, said it was expected that better-performing states would generally say that (they faced a reduction in central allocations). "That (states which made progress saying their allocations declined) is to be expected. At least so far, what we have seen, in two of the states, Karnataka and Telangana, we have heard that," the economist told reporters here. Asked for his response to the issue, he said, "The Commission is open to listening to everything. The Commission will think about all possibilities. What we will do in the end, I can't tell, because I don't know". The Commission had .

The Telangana Government on Tuesday requested the 16th Finance Commission to increase the share of states in Central taxes from the existing 41 per cent to 50 per cent as over the years cesses and surcharges that are not shared with states have increased. Deputy Chief Minister in-charge of Finance Bhatti Vikramarka in his speech at the meeting with Finance Commission Chairman Arvind Panagariya and members also urged the finance panel to ensure that states are given the necessary autonomy to tailor CSS (centrally-sponsored scheme) programmes to their specific development needs. "In addition, we propose increasing the share of states in Central taxes from 41 per cent to 50 per cent. Over the years, cesses and surcharges that are not shared with states have increased, leaving states with a smaller share of total gross tax revenue," he said. Increasing the vertical devolution will give states the fiscal space they need to strengthen welfare programmes, address infrastructure gaps and ..

The issue of significant cuts in the Central financial allocations to some states due to their progress in certain areas will be a major highlight when Finance Ministers from four South Indian states and Punjab meet on September 12, sources said on Monday. Five opposition-ruled states -- Kerala (Left), Karnataka and Telangana (Congress), Tamil Nadu (DMK), and Punjab (AAP) -- are holding a conclave to seek a fair deal for their fiscal needs in the upcoming 16th Finance Commission. The Finance Ministers' conclave is also seen as a bid to build pressure on the BJP-ruled Centre to address their grievances regarding resource allocations, given the commencement of the 16th Finance Commission's operations, chaired by Dr A Arvind Panagariya. A government source said Kerala and some other states have faced significant cuts in Central financial allocations, as recommended by previous Finance Commissions. "The 10th Finance Commission recommended a 3.875 per cent allocation for Kerala, whereas

Kerala will host a conclave of five opposition-ruled states--four from South India and Punjab from the North--to discuss how to ensure their fiscal needs are addressed in the upcoming 16th Finance Commission, state Finance Minister K N Balagopal said on Thursday. Besides the Left-ruled Kerala and AAP-governed Punjab, the states that will take part in the conclave are Tamil Nadu (DMK) and the Congress-ruled states of Karnataka and Telangana. The move by the Left government is seen as an effort to bring together the opposition-ruled states to strengthen their bargaining position with the BJP-ruled Centre. Last year, the state had filed a suit in the Supreme Court against the Centre for imposing limits on its borrowing capacity. Balagopal said that the conclave, which will be inaugurated by Kerala Chief Minister Pinarayi Vijayan on September 12, aims to 'protect and strengthen' the cooperative and fiscal federalism of the country. Besides himself, Telangana Deputy Chief Minister and .

Economically advanced States are committed to supporting poorer States, but this should not come at the expense of their own residents or economic efficiency, Karnataka Chief Minister Siddaramaiah said on Thursday. In his address to Chairman of the 16th Finance Commission Arvind Panagariya and its members at a meeting here, he said the panel needs to carefully examine the impact of extremely high emphasis given to equity on the incentives of well performing states. "Moreover, the taxpayers of such states expect their taxes to work for them. This creates public trust. The Finance Commission therefore needs to do a tightrope walk while balancing equity with efficiency and performance," Siddaramaiah said. Noting that cesses and surcharges are not part of the divisible pool, the Chief Minister said over the years, the Union Government has increased its reliance on them. This has led to the divisible pool not growing in the same proportion as the Gross Tax Revenue, he said. This has cau