Synopsis
On February 6, political leaders in Odisha presented memorandums to the 16th Finance Commission, urging for increased financial support. The commission's visit aims to address the state's funding requirements and concerns regarding various economic challenges.Key Takeaways
- Political representatives met with the 16th Finance Commission.
- Demands included increased state share from tax receipts.
- Concerns raised over coal royalty revisions.
- Requests for special packages for industries and tourism.
- Odisha government seeks substantial financial support for future planning.
Bhubaneswar, Feb 6 (NationPress) Representatives from various political factions in Odisha convened on Thursday to engage with the 16th Finance Commission, presenting distinct memorandums that advocate for increased funding for the state.
The 16th Finance Commission, under the leadership of chairperson Arvind Panagariya, is visiting Odisha from February 4 to 7.
According to senior BJD leader Prasanna Acharya, "We have presented a memorandum to the commission on behalf of party president Naveen Patnaik. Our requests include enhancing the state's share from the central tax receipts pool. We also highlighted the long-overdue revision of coal royalties and expressed concerns regarding the green cess."
Acharya added that the BJD has requested a special package to revitalize struggling industries in Odisha and adjustments in the funding ratios for central government schemes to alleviate the financial pressures on states.
He conveyed optimism that the commission would heed their requests.
“Our primary request pertains to the division of state and central shares in the vertical distribution of tax receipts. We propose that 60 percent be allocated to the state and 40 percent remain with the center. Likewise, in horizontal distribution, the state's share should be determined by scheduled areas and populations,” emphasized former finance minister and Congress leader Panchanan Kanungo.
Kanungo further noted that the Congress has urged the commission to focus on the conservation of Chilika Lake, historical landmarks, and rivers in Odisha.
A delegation from the ruling BJP also approached the 16th Finance Commission, submitting their own memorandum.
The BJP called for an increase in the state's share of tax devolution, special packages for tourism, MSMEs, and tribal communities, as well as enhanced funding for disaster management.
Remarkably, the Odisha government is seeking Rs 12,59,148 crore from the 16th Finance Commission for the five-year span from 2026 to 2031, aimed at guiding the state towards the vision of ‘Samruddha Odisha by 2036’.
The government’s requests include Rs 9,88,422 crore for Pre-Devolution Revenue Deficit, Rs 1,10,434 crore for state-specific initiatives, Rs 1,00,036 crore as grants to local entities, Rs 31,004 crore for the State Disaster Response Fund, and Rs 29,252 crore for the State Disaster Mitigation Fund.
