Goa seeks Rs 3600 cr boost from the 16th finance commission

Daijiworld Media Network- Panaji

Panaji (Goa), Jan10: The Goa government has urged the 16th finance commission to allocate Rs 3600 cr to the state for bolstering key sectors such as tourism, healthcare, agriculture, and disaster management. Chief minister Pramod Sawant announced this following a meeting with the commission’s delegation, which is currently visiting Goa.

Speaking to reporters, CM Sawant said, “We have presented a detailed proposal to the 16th Finance Commission, seeking Rs 3600 crore to address critical developmental needs in the state. This funding is essential to support our efforts in tourism promotion, health sector improvements, agricultural development, and disaster management preparedness.”

Key objectives of the 16th finance commission

The 16th finance commission (FC-XVI), chaired by professor Arvind Panagariya, was established on December 31, 2023. Its primary mandate includes making financial recommendations to ensure equitable resource distribution between the central government and the states.

Core Responsibilities:

1. Tax revenue distribution:
2. Grants-in-aid allocation:
3. Strengthening local governance:
4. Disaster management financing:

• Allocating net tax proceeds between the Union and States under Chapter I, Part XII of the Constitution.
• Determining the respective shares of individual states.

• Establishing guidelines for grants-in-aid from the Consolidated Fund of India under Article 275, excluding specific exceptions.

• Recommending measures to increase financial resources for Panchayats and Municipalities, based on inputs from State Finance Commissions.

• Evaluating existing disaster management funding mechanisms under the Disaster Management Act, 2005, and recommending necessary enhancements.

Kerala’s recent appeal for increased tax pool share

In December 2024, Kerala appealed to the 16th finance commission to raise its share of the divisible tax pool from 41% (recommended by the 15th finance commission) to 50%. This request highlighted Kerala’s need for additional resources, citing factors such as population density, geographical size, and demographic performance.

The 16th finance commission, under professor Panagariya’s leadership, continues to deliberate on resource allocation strategies to ensure balanced economic growth and development across states.

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