Synopsis
The 16th Finance Commission, led by Arvind Panagariya, has arrived in Bhopal to assess Madhya Pradesh's financial needs and tax distribution. Meetings will be held across the state from March 5 to 8, including discussions on grants and local body funding.Key Takeaways
- 16th Finance Commission evaluating Madhya Pradesh's financial needs.
- Key meetings scheduled in Bhopal and other regions.
- MP seeks an increase in its share of central taxes.
- Commission will review the utilization of central funds.
- Additional grants are being requested for local bodies.
Bhopal, March 4 (NationPress) The 16th Finance Commission, under the leadership of its chairman Arvind Panagariya, has reached Madhya Pradesh to evaluate the state’s financial requirements and tax distribution on Tuesday.
In addition to meetings in Bhopal, the commission plans to explore various regions of the state and engage with public representatives and senior officials from March 5 to March 8, based on official reports.
The delegation will discuss the state's financial needs during a session at the Kushabhau Thakare Convention Center in Bhopal on March 6, as mentioned by Chief Minister Mohan Yadav on Tuesday.
Furthermore, the Commission members are scheduled to meet with representatives from corporations, district panchayats, and political factions, he added.
On March 7, the Commission will head to the financial hub of the state, Indore. They will tour the biogas facility of the Indore Municipal Corporation and the Special Economic Zone (SEZ) in Pithampur.
Subsequently, after their visits to Indore and Pithampur (in Dhar), the eight-member Commission will proceed to Omkareshwar. This commission is responsible for determining the states' share in central taxes and suggesting grants for specific sectors while also reviewing how the state government has utilized central funds.
A significant aspect of the Commission's visit to MP is the upcoming meeting with the CAG in Bhopal. Officials indicated that this meeting could have occurred anywhere in the country, but it is happening in MP this time.
Currently, Madhya Pradesh receives a 7.85 percent share of the central taxes, but the state is advocating for an increase to nearly 9 percent. It ranks third in the country regarding tax devolution and has mobilized a dedicated team from the finance department to strengthen its case for a larger share.
Officials noted that MP receives approximately Rs. 1,000 crore yearly grant for health. Now the state is seeking additional grants from the finance commission for local bodies and disaster management.
Madhya Pradesh secured over Rs 1.11 lakh crore as devolution (its share of the central taxes) in the union budget for 2025-2026, revealed on February 1.
In the preceding budget, the devolution for MP was Rs. 97,000 crore. As of March 31, the total debt of the MP government exceeded Rs 3.75 lakh crore.
Following the loans acquired by the government throughout this financial year, the state's total debt has risen to Rs 4.10 lakh crore. This figure is expected to increase further with additional loans.
