CM Meets 16th Finance Commission, Holds Extensive Deliberations, Seeks Rs 12.6 Lakh Crore for 2026-31
Bhubaneswar 06 February 2025-Chief Minister Shri Mohan Charan Majhi has sought Rs 12,59,148 Crore from 16th Finance Commission for the five-year period from 2026-31, that will help the state in steering the roadmap to ‘Samruddha Odisha by 2036’. The CM said this after having a comprehensive discussion with the Chairman of 16th Fc Dr Arvind Panagariya and other members at ITC Hotel in the city. It may be mentioned here that the 16th Finance Commission headed by Dr Arvind Panagariya is in Odisha from 4th to 7th February.
Specifying the demands in different categories, CM said we have sought Rs 9,88,422 Crore to make up for Pre-Devolution Revenue Deficit, Rs 1,10,434 Crore for State Specific Need, Rs 1,00,036 Crore as Grants to Local Bodies, Rs 31,004 Crore for Disaster Response and Rs 29,252 Crore for Disaster Mitigation.”
While speaking to media, CM Shri Majhi said that today we had a constructive discussion with the Commission on various aspects of the State. We have put forth our demands before the Commission concerning State’s developmental needs, fiscal capacity and the proposed fiscal transfer system with a hope that the Commission would consider our submission favourably and reflect in their report covering the period from 2026-2031. We have also made a written submission before the Commission in shape of a Memorandum covering all aspects and requirements of the State, the CM informed.
He further added that the shares of the states in the divisible pool is 41%. We have placed demand to enhance this to 50%. Besides, Gross tax income of Government of India is distributed among the states on the basis of a defined formula. Accordingly, share of Odisha stands at 4.528%. We have placed a demand to enhance the share of Odisha to 4.964 %. 16th Finance Commission may peg combined grants for all rural and urban local bodies at 2% of the projected gross revenue receipts of the Union for the award period of 2026-31. This will enhance grants for local bodies of the State, the CM said.
In the annual corpus of SDRF for the State 75% is borne by the Central Government and rest 25% is borne by State. Demand has been made so that Central Government should borne 100% of the grant. Apart from the above, the Commission may recommend grant for specific purpose transfer for health, water supply & sanitation and old age security,” CM Majhi added.
On this occasion, along with the Chief Minister Sri Majhi, Chief Secretary, Sri Manoj Ahuja, Development Commissioner, Smt. Anu Garg, State Finance Secretary, Sri Sashwat Mishra and other state officials were present during the meeting.
