Bhubaneswar: Chief Minister Mohan Charan Majhi has sought Rs 12,59,148 Crore from 16th Finance Commission for the five-year period from 2026-31, that will help the state in steering the roadmap to ‘Samruddha Odisha by 2036’. The CM said this after having a comprehensive discussion with the Chairman of 16th Fc Dr Arvind Panagariya and other members at ITC Hotel in the city.
It may be mentioned here that the 16th Finance Commission headed by Arvind Panagariya is in Odisha from 4-7 February.
Specifying the demands in different categories, the CM said we have sought Rs 9,88,422 Crore to make up for Pre-Devolution Revenue Deficit, Rs 1,10,434 Crore for State Specific Need, Rs 1,00,036 Crore as Grants to Local Bodies, Rs 31,004 Crore for Disaster Response and Rs 29,252 Crore for Disaster Mitigation.”
While speaking to media, CM Shri Majhi said that today we had a constructive discussion with the Commission on various aspects of the State. We have put forth our demands before the Commission concerning State’s developmental needs, fiscal capacity and the proposed fiscal transfer system with a hope that the Commission would consider our submission favourably and reflect in their report covering the period from 2026-2031. We have also made a written submission before the Commission in shape of a Memorandum covering all aspects and requirements of the State, the CM informed.
He further added that the shares of the states in the divisible pool is 41%. We have placed demand to enhance this to 50%. Besides, Gross tax income of Government of India is distributed among the states on the basis of a defined formula. Accordingly, share of Odisha stands at 4.528%. We have placed a demand to enhance the share of Odisha to 4.964 %. 16th Finance Commission may peg combined grants for all rural and urban local bodies at 2% of the projected gross revenue receipts of the Union for the award period of 2026-31. This will enhance grants for local bodies of the State, the CM said.
In the annual corpus of SDRF for the State 75% is borne by the Central Government and rest 25% is borne by State. Demand has been made so that Central Government should borne 100% of the grant. Apart from the above, the Commission may recommend grant for specific purpose transfer for health, water supply & sanitation and old age security,” CM Majhi added.
“The Odisha government has demanded that the cess and surcharges collected by the Centre should go to the central pool for devolution among the States,” said Dr.Panagariya.
The Finance Commission Chairman also praised the State for its fiscal discipline and made some suggestions to the State as an economist.
He also informed that the State Government has putforth demand for revision in the weightages set by the 15th Finance Commission for distribution of the devolution pool among the States.
On Special Category Status for Odisha, Dr.Panagariya said the subject is not coming under the purview of the terms and reference of the Finance Commission. Earlier, the Planning Commission was giving the status. But, now it was revived as NITI Aayog and no other State has got the status, he sai
Chief Secretary, Manoj Ahuja, Development Commissioner, Anu Garg, ACS Home Satyabrata Sahu, DGP Y B Khurania, Principal Secretary, Finance, Saswat Mishra and other state officials were present during the meeting.