States' share in central taxes come down to 29-32% against recommended 41%

The previous five years saw the states' share, except for 2019-20, in between 34.5% and 37%, whereas the recommendation was to give them a 42% share

The states’ share of central taxes has been hovering in the range of 29-32 per cent since financial year 2020-21 (FY21), when it should have been 41 per cent in line with the recommendations of the 15th Finance Commission. At a NITI Aayog meeting on Sunday, some states raised concerns over revenue sharing.

The previous five years saw the states’ share hover between 34.5 per cent and 37 per cent, except for FY20, whereas the recommendation was to give them a 42 per cent share.

In the first year of the Narendra Modi government (2014-15), the states’ share was just