Punjab's Demand for Higher Tax Share: A Push from the 16th Finance Commission

The Punjab government has requested that states receive 50% of the taxes collected by the Center, up from the current 41%. This was communicated during the 16th Finance Commission's visit to Punjab, where meetings were held with Chief Minister Bhagwant Mann and top state officials, discussing economic and financial issues.

The 16th Finance Commission Chairman Arvind Panagariya revealed on Monday that the Punjab government has urged for the states to receive 50 percent of the taxes collected by the Center, an increase from the present 41 percent share.

The commission, in its visit to Punjab, conducted meetings with Chief Minister Bhagwant Mann and senior state officials, focusing extensively on the state's economic and financial landscape.

Panagariya noted that Punjab's CM provided a comprehensive overview of the state's economic and financial condition. The state's Finance Secretary also delivered a detailed presentation, highlighting key economic challenges and the impact of GST on Punjab's revenue.

Panagariya also shared details about the finance commission's mandate, emphasizing the vertical and horizontal divisions of central taxes between the Centre and the states.

Punjab's demand, he noted, centered on increasing the states' share from the current 41 percent to 50 percent. The commission, comprising members like Soumyakanti Ghosh and Ajay Narayan Jha, acknowledged the proposal.

(With inputs from agencies.)