Friday, 9 May 2025

Maharashtra’s Fiscal Discipline and Economic Contribution Commendable: Dr. Arvind Panagariya

 

Maharashtra’s Fiscal Discipline and Economic Contribution Commendable: Dr. Arvind Panagariya

State presents key demands to the 16th Finance Commission during Mumbai meeting

Mumbai, May 8, 2025: Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, lauded Maharashtra’s fiscal discipline and the state's significant contribution to India’s economic growth. A meeting of the 16th Finance Commission was held at the Sahyadri Guest House in Mumbai.

Chief Minister Devendra Fadnavis, Deputy Chief Minister Eknath Shinde and  Deputy Chief Minister and Finance & Planning Minister Ajit Pawar welcomed Dr. Arvind Panagariya and Commission members Dr. Manoj Panda and Dr. Soumya Kanti Ghosh.

On behalf of the state government, Chief Minister Fadnavis submitted a formal memorandum to the Commission, highlighting key demands and suggestions aligned with the Commission’s terms of reference. Maharashtra has requested an increase in the Vertical Devolution (Centre-State tax sharing) from the current 41% to 50%. It also urged that cesses and surcharges be included in the divisible pool of taxes and that the Centre’s non-tax revenues be considered for sharing.

The state suggested new criteria for Horizontal Devolution (inter-state distribution), including metrics like “Sustainable Development & Green Energy” and “Growth Contribution of States to India’s GDP.” It also requested reducing the weight of the Income Distance criterion from 45% to 37.5%.

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