Latest news with #16thFinanceCommission
Hindustan Times
an hour ago
- Business
- Hindustan Times
16th Finance Commission arrives in state today, Uttar Pradesh to pitch for larger share of tax pie
As the 16th Finance Commission begins its visit to the state from Ayodhya on Tuesday, the Uttar Pradesh government's team is working almost round the clock to make a case for a greater share in the 'divisible pool of states' that came down marginally following the 15th Finance Commission's recommendations. The divisible pool refers to the portion of the central government's gross tax revenue that is allocated to states. Though Uttar Pradesh got the largest share among the states, its share in the divisible pool came down marginally from 17.959% to 17.931% (for 2021-2026) as the 15th Finance Commission recommended the share of states to be 41% (against 42% by the 14th Finance Commission) with an adjustment of 1% made to provide for the then newly formed Union Territories of Jammu and Kashmir and Ladakh from resources of the Centre. The 16th Finance Commission led by its chairman Arvind Panagariya will arrive in the state capital on Tuesday evening after visiting Ayodhya earlier in the day. Senior officers are busy giving final touches to the state government's demands to be made to the finance panel for a greater share in central funds. Chief minister Yogi Adityanath on Monday reviewed the presentation to be made by the state government before the finance panel. 'Yes, the state government will demand a greater share in the divisive pool of states with special consideration for Uttar Pradesh for additional funds. Uttar Pradesh is leading on the path of development as our focus has been on bringing about improvement in the law-and-order situation and boosting development. We are working to achieve objectives of zero poverty and make UP a trillion-dollar economy,' minister for finance Suresh Khanna said. Those aware of the development said the state government would demand that the Finance Commission should give greater weight to the population. The state government would make a detailed presentation about the efforts being made by it to mobilise additional resources and improve forest cover. 'We hope the 16th Finance Commission will recommend a greater share to the states and give special consideration to Uttar Pradesh in giving additional funds,' a senior officer of the state government said on condition of anonymity. The 15th Finance Commission introduced demographic performance of states in the need-based six-point criteria recommended for horizontal devolution. The commission gave 15% weight to population, 15% to area, 10% to forest and ecology, 45% to income distance, 12.5% to demographic performance and 2.5% for tax effort. The 14th Finance Commission had given 17.5% weight to the population of 1971 and 10% weight to the population of 2011. It gave 15% weight to area, 7.5% to forest cover and 50% to income distance. Besides going for 'darshan' at the Ram temple in Ayodhya, the finance commission will also pay a visit to some developmental sites, as per the programme. Chief minister Yogi Adityanath will host dinner for the commission on Tuesday evening. On Wednesday, the state government will make a presentation about its development journey and efforts to achieve the trillion-dollar economy objective along with arrangements made for Prayagraj Maha Kumbh 2025 that attracted 66 crore pilgrims. The commission will also meet representatives of Panchayat Raj Institutions, urban local bodies and trade and industry. The commission will meet representatives of political parties and also speak to media persons here on Wednesday. On Thursday, the commission will leave for Varanasi from where the panel will proceed to New Delhi.
Hindustan Times
2 days ago
- Business
- Hindustan Times
Finance Commission delegation to discuss key issues with U.P. CM Yogi Adityanath
A 13-member delegation of the 16th Finance Commission will have a meeting with Uttar Pradesh chief minister Yogi Adityanath and officials of various departments in Lucknow on June 4 to discuss state-specific financial issues, projects and development priorities. The delegation will reach Ayodhya on June 3 and visit the Ram temple. The team will also take stock of development projects in the district. In the evening, the delegation will reach the state capital to attend a dinner hosted at the chief minister's official residence. On June 4, the delegation, headed by Prof Arvind Panagariya, will hold a meeting with CM Yogi, followed by a press briefing at around 12:30 pm. The recommendations of the 16th Finance Commission will be for a period of five years commencing on April 1, 2026. The delegation will also meet officials from urban development, panchayati raj, and industry departments besides representatives of political parties. The delegation will then proceed to Varanasi to visit project sites. The finance panel delegation is likely to review developmental efforts under the state's flagship One District, One Product (ODOP) scheme. They will also visit the silk cluster in Varanasi. The itinerary also includes a visit to the Kashi Vishwanath Temple. The visit holds significance as it will contribute to the commission's broader recommendations on the distribution of financial resources between the centre and the states, including grants for local development and infrastructure.
Time of India
3 days ago
- Business
- Time of India
State seeks over 3 lakh crore from fin panel; ‘special status' unlikely
1 2 Ranchi: Jharkhand on Friday placed a cumulative demand of Rs 3,03,527.44 crore for various projects spanning 23 departments for the next five years before the 16th Finance Commission. The demand was placed before the 11 members of the commission, who are here on their final day of the four-day tour of the state on Friday The members, however, indicated that the state's demand for a "special status" would be unlikely. In his presentation before the commission team headed by its chairman Arvind Panagariya, state finance minister Radha Krishana Kishore listed out falling revenues due to the implementation of the GST, delayed and non-payment of central grants and other dues for years, which is making it difficult for the administration to fast-track development of the state. The Jharkhand govt has also proposed an increase in the devolution of funds from the existing 41% in "vertical devolution" to 50% for the states and has gone on to suggest that the devolution of grants must also be considered based on revenue losses of a state because of the GST. Citing how GST is impacting the state revenues, Kishore said after July 2022, states have stopped receiving GST compensation from the Centre. "Jharkhand is less of a consumer and more of a producer state but GST being a use-based tax system, we have to bear its loss. Based on the current trends, a loss of about Rs 61,677 crore is estimated in the next five financial years from 2025-26 to 2029-30. Therefore, we expect the finance commission to keep this in mind and provide additional grants so that we can deal with the losses," he stressed. The minister also highlighted how out of the proposed Rs 1.5 lakh crore to Jharkhand by the 15th Finance Commission for the development of various sectors, the state has only received Rs 12,398.02 crore for sectors like rural roads, culverts, disaster management, urban development and health. Meanwhile, Panagariya told the media that the commission had heard all views and would make final recommendations to the Union govt for the devolution of funds over the next five years after meeting all state govts. "Jharkhand is our 27th visit and Uttar Pradesh will be the last one," he said, after the deliberations with different stakeholders in the state, including the govt representatives. On state's demands and suggestions for devolution of funds between the Centre and the state, Panagariya said, "Under 15th Finance Commission, 15% weightage was given to the population of a state to grant funds, which Jharkhand demanded to increase it to 17.5%. Similarly, it demanded 50% weightage on per capita as Jharkhand is among the lowest in this segment in the country. It, however, came up with an interesting and creative demand of 2.5% weightage based on GST losses. " Asked about state govt's regular demand for a "special status", the commission member said it is unlikely to happen. "It is because special status was in practice when the planning commission existed. After it got dissolved and Niti Aayog came into being, no such criteria exist," he added. On the other hand, state water resources and excise department minister Yogendra Prasad said, "We (govt) have apprised the commission members in detail about our needs, challenges and requirements across different sectors. We are optimistic of a suitable response in the coming days," Prasad told reporters.
Hans India
4 days ago
- Business
- Hans India
Jharkhand seeks Rs 3.03 lakh crore from 16th Finance Commission for development
Ranchi: The Jharkhand government has sought a grant of Rs 3.03 lakh crore from the 16th Finance Commission to accelerate the state's integrated and inclusive development. On Friday, ministers, senior officials, and representatives of the state administration made a detailed presentation before the visiting Finance Commission team, outlining a comprehensive roadmap for growth across key sectors. The Commission, led by Chairman Arvind Panagariya, is currently on a four-day tour of the state. The state government argued that despite Jharkhand's abundant mineral and natural resources, it has not received central grants in proportion to the extent its resources are used for national development. In the high-level meeting, Finance Minister Radha Krishna Kishore, along with Higher Education, Urban Development and Tourism Minister Sudivya Kumar Sonu, Water Resources Minister Yogendra Prasad, and other officials, emphasised the need for special financial support to bring Jharkhand on par with more developed states. The government has put forward a demand of Rs 2.01 lakh crore specifically for infrastructure development, covering critical areas such as roads, bridges, rural development, transport, urban infrastructure, energy, industry, and tourism. The state's additional demands include Rs 44,447 crore for the social sector; Rs 41,388 crore for agriculture, forests, and water resources; and Rs 17,918 crore for home affairs, Panchayati Raj, land reforms, and revenue administration. Following the meeting, Minister Sudivya Kumar Sonu said the Commission took detailed feedback on the state's conditions, challenges, and priorities. 'Their approach towards our demands appeared positive,' he said. Water Resources Minister Yogendra Prasad added: 'We have presented a comprehensive report on Jharkhand's unique challenges and aspirations. We remain hopeful that the Commission will do justice to our needs.' He said, 'We are confident that Jharkhand will receive grants aligned with our vision for holistic development across all sectors.'
Indian Express
4 days ago
- Business
- Indian Express
3rd-party evaluation must for Central schemes to go on beyond March 2026
As the government prepares to prioritise its schemes for the 16th Finance Cycle starting on April 1st next year, the Ministry of Finance has told all ministries and departments that no Centrally Sponsored Scheme (CSS) or Central Sector Scheme (CS) will be considered for continuation beyond March 31st, 2026, unless a third-party evaluation of the scheme is carried out. This was conveyed to all Secretaries of the Government of India and Financial Advisors (FAs) during a meeting chaired by Cabinet Secretary TV Somanathan on Thursday. The meeting, which was attended by Secretaries of Government of India and Financial Advisors, discussed the appraisal and approval process of CSS and CS for the 16th Finance Commission cycle (2026-31). Before the meeting, the Department of Expenditure had circulated to the ministries 'a note on the points to be discussed in the meeting and context'. 'No Scheme (CSS and CSs) which is to continue over the next FC cycle will be taken up for appraisal unless a Third Party evaluation of the scheme is conducted. The Evaluation Report must demonstrate positive 'outcomes' as well as the need for continuing the scheme in view of its mandate and performance,' reads the note. According to sources, NITI Aayog, the government's top think tank, is currently conducting evaluation of the CSSs. This exercise is to be completed shortly and the draft reports will be shared with the respective ministries and departments, the sources said. NITI Aayog officials present in the meeting, made a PowerPoint presentation on the ongoing evaluation studies. The sources say that ministries and departments have been asked to conduct evaluation studies of their schemes by the end of July this year and get approval for continuation of schemes beyond March 31, 2026 from the Expenditure Finance Committee (EFC) before the start of the budget making process. The Ministries and Departments have been informed that in the 16th Finance Commission cycle (2026-31), they will receive allocation 5.5 times their average actual annual expenditure during the last five fiscal years (2021-22-2025-26). During the meeting, several ministries are learnt to have sought higher allocation for their programs. For instance, the Ministry of Health and Family Welfare sought additional funding for vaccinations, it is learnt. When officials from several ministries made demands for higher allocation in the next Finance Commission cycle, the Cabinet Secretary is learnt to have made a remark that they should propose realistic outlays and not 'inflated' figures while seeking outlay for the next five years. In November 2023, the government approved the constitution of the 16th Finance Commission. It is expected to make its report available by October 31, 2025. The recommendations of the 16th Finance Commission will be for a period of five years commencing on the 1st day of April, 2026. Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister's Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers' Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More
