Bhubaneswar: Odisha Chief Minister Mohan Charan Majhi has called for a significant increase in the state’s share of Central taxes during a meeting with the 16th Finance Commission. Chairperson Arvind Panagariya and other commission members were presented with a comprehensive proposal aimed at accelerating Odisha’s growth and development.
Majhi urged the commission to raise the states’ share in Central taxes from the current 41% to 50%, emphasising that this adjustment is crucial for addressing the unique needs of Odisha and ensuring balanced regional development. He also submitted a detailed demand for a ₹12,59,148 crore allocation over the next five years (2026-2031) to support the state’s ambitious development agenda.
The Chief Minister outlined specific financial requirements, including ₹9,88,422 crore as pre-devolution revenue, ₹1,10,434 crore to meet special needs, and ₹1,36,000 crore for local bodies. Additionally, he sought ₹31,400 crore for the State Disaster Relief Fund (SDRF) and ₹29,252 crore for disaster management initiatives. Notably, Majhi advocated for 100% central funding for the SDRF, a departure from the current 75-25% sharing model between the Centre and the state.
Odisha also proposed an increase in its share of Central allocations from 4.528% to 4.964%. The state government further recommended allocating 2% of the Gross Revenue Receipt (GRR) to panchayats and municipalities to strengthen grassroots governance and infrastructure.
Highlighting Odisha’s aspirations to rank among the top five states in the country, Majhi urged the Finance Commission to prioritise key areas such as water security, healthcare, and financial support for the elderly. He also stressed the importance of focusing on urbanisation, rural development, and the growth of agriculture and MSME sectors to drive inclusive and sustainable progress.
The 16th Finance Commission, which has been on a visit to Odisha since February 4, is set to conclude its tour on February 7. The state’s proposals aim to secure the necessary resources to transform Odisha into a model of development and resilience.
With these demands, Odisha is positioning itself for a brighter future, seeking the financial support needed to achieve its vision of prosperity and growth.
