Haryana Seeks Higher Revenue Share for Economic Growth

The Haryana government met with the 16th Finance Commission to discuss increasing its revenue share for enhanced economic growth. Despite low central devolution, Haryana maintained its fiscal health. The state proposed several revisions to the revenue allocation formula, including considerations for GST impacts and contributions to national security.

The Haryana government is pushing for a higher revenue share to bolster its economic growth, revealed a recent meeting with the 16th Finance Commission led by Arvind Panagariya. Chief Minister Nayab Singh Saini and other senior officials made a strong case for enhanced resource allocation, citing financial challenges despite maintaining fiscal discipline.

In the discussions, Panagariya outlined the Finance Commission's role in distributing tax revenue between the Center and states and how Haryana has often received less than its due share. Haryana's representatives recommended revising the formula, suggesting an increase in the share of tax and fiscal effort due to the state's strong tax generation performance.

Haryana also highlighted its geographical significance and contributions to the national defense forces, advocating for special considerations in revenue allocation. The 16th Finance Commission has been consulting stakeholders nationwide, with Haryana being its 24th stop, as it works towards finalizing its recommendations by October 2025.

(With inputs from agencies.)