States Demand Larger Share from Central Tax Pool

Several states have proposed increasing their share of the central divisible tax pool from 41% to 50%, according to 16th Finance Commission Chairman Aravind Panagariya. States also want cess and surcharges to be part of the pool. Odisha has highlighted its financial grievances and seeks greater equity.

In a significant development, a number of states have intensified their call for an increased share of the central divisible tax pool, proposing a hike from 41% to 50%, as reported by 16th Finance Commission Chairman Aravind Panagariya.

Further demands include the integration of cess and surcharges, currently excluded, into the divisible pool to ensure a broader distribution between the center and the states.

Notably, Odisha has voiced its financial concerns, urging a more equitable fund allocation, while submitting a substantial Rs 12,59,148 crore demand for the period spanning 2026 to 2031.

(With inputs from agencies.)