Bhubaneswar: The Odisha government on Thursday urged the 16th Finance Commission to increase the states’ share in central taxes to 50 per cent. Additionally, it sought 100 per cent funding of the State Disaster Response Fund (SDRF) by the Centre. An eight-member team of the 16th Finance Commission, led by Dr. Arvind Panagariya, is currently on a four-day visit to Odisha, holding discussions with state government officials and political parties regarding the state’s demands and financial requirements. Sharing details about Odisha’s requests, Chief Minister Mohan Charan Majhi stated that the state had submitted a memorandum to the Commission, seeking a total sanction of Rs 12,59,148 crore for the five-year period from 2026 to 2031. The demand includes Rs 9,88,422 crore for pre-devolution revenue deficit, Rs 1,00,434 crore for the State-Specific Fund, Rs 1,00,034 crore for grants to local bodies, Rs 31,004 crore for SDRF and 29,252 crore for the State Disaster Mitigation Fund (SDMF). “We have submitted a comprehensive memorandum to the Finance Commission, requesting Rs 2.59 lakh crore. Given Odisha’s vulnerability to natural disasters, we have also sought 100 per cent funding for SDRF instead of the existing 75 per cent. If our demands are met, it will lead to significant transformation in both rural and urban areas, fostering overall development,” said the Chief Minister. Speaking to reporters, Finance Commission chairperson Dr Arvind Panagariya stated that Odisha has requested increased weightage in various financial criteria, including forest cover and tax efforts. According to Panagariya, the Odisha government sought 45 per cent weightage for income distance, 15 per cent for modified population, 5 per cent for population density, 10 per cent for forest ecology, 15 per cent for fiscal discipline and 10 for demography . When asked about the demand for increasing states’ share in central taxes, Panagariya acknowledged that most states had made similar requests, seeking a hike to 50 per cent in the divisible pool. On the challenge of computing population profiles in the absence of a new census since 2011, he assured that the most credible and authentic available data would be used for calculations. Dr. Panagariya praised Odisha’s presentation, led by Saswat Mishra, principal secretary of the finance department, calling it “very impressive.” He noted that the state’s request to consider Scheduled Tribes, Scheduled Castes, and the elderly as a distinct demographic entity was a novel proposal, which the Commission appreciated.
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