Bhubaneswar: The State government has made a significant demand for funds from the 16th Finance Commission, seeking Rs 12,59,148 crore for the period 2026-2031.
Chief Minister Mohan Charan Majhi announced this after meeting with the Commission, outlining the state’s financial needs and proposals.
The demand includes a substantial allocation of Rs 9,88,422 crore for addressing the pre-devolution revenue deficit. Additionally, the state has sought Rs 1,10,434 crore for meeting state-specific needs and Rs 1,00,036 crore for grants to rural and urban local bodies. Furthermore, the state has demanded Rs 31,004 crore for the State Disaster Management Fund and Rs 29,252 crore for the State Disaster Relief Fund.
Majhi emphasized that the demands are based on the state’s developmental needs, financial capacity, and proposed financial devolution mechanism. He expressed hope that the Commission would consider their presentation favourably.
The Chief Minister also discussed the state’s share in central taxes, currently at 41%, and demanded an increase to 50%. Additionally, Odisha’s share in the Central Government’s tax revenue, currently at 4.528%, was proposed to be increased to 4.964%.
The 16th Finance Commission, chaired by Dr. Arvind Panagariya, is visiting Odisha from February 4 to 7. The Commission has proposed to provide 2% of the Gross Revenue Receipt estimated by the Centre for the period 2026-31 as grants to Rural and Urban Local Bodies.
The Chief Minister was accompanied by Chief Secretary Manoj Ahuja, Development Commissioner Anu Garg, State Finance Secretary Shaswat Mishra, along with officers of the Finance Department and heads of various departments of the state.
