Finance Commission Responds to State Allocation Concerns

The 16th Finance Commission, led by Chairman Arvind Panagariya, is addressing states' concerns over reduced central allocations despite strong economic performance. During a state visit to Telangana, the panel emphasized considering each state's contribution to the GDP. A conclave of five opposition-ruled states is planned to discuss fiscal needs.

The 16th Finance Commission, chaired by Arvind Panagariya, addressed the grievances of states experiencing cuts in central allocations despite robust economic performance during his visit to Telangana.

Panagariya acknowledged that better-performing states like Karnataka and Telangana feel shortchanged. "It's expected that states making progress report reduced allocations," he noted.

The Commission is open to listening to all perspectives and will consider various possibilities, though final decisions remain undetermined, with 22 more states to visit.

The commission emphasized the importance of recognizing Telangana's GDP contributions in fund division among the country's 28 states.

Five opposition-ruled states are set to hold a conclave to seek equitable fiscal solutions from the upcoming 16th Finance Commission.

(With inputs from agencies.)