Odisha joins States’ pitch for 50% share of divisible tax pool
The HinduOdisha has joined the growing demand for the Finance Commission to raise States’ share in India’s divisible tax pool to 50%, from about 41% currently. The Odisha CM has sought ₹12,59,148 crore from the Commission for the five-year period from 2026-27 to 2030-31, noting that “the funds will help the State in steering the roadmap to a Samruddha Odisha by 2036.” Acknowledging the State’s demand, Mr. Panagariya said, “We have received requests from the majority of States we visited to increase the State’s share in the divisible pool to 50%. However, a few States indicated they could manage if the share is raised to at least 45%.” Odisha pointed out that the use of the entire population as a determinant of tax devolution as a negative line of thinking, because it denotes the entire population is a liability. Moreover, the government said that “using area as a proxy for density of population is incorrect because even smaller States may be sparsely populated, while a State large in size is not necessarily sparsely populated”.
History of this topic
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