Gujarat Advocates for Recognition of Fiscal Discipline in Finance Commission Meeting

Gujarat's Chief Minister Bhupendra Patel urged the 16th Finance Commission to reward states with fiscal discipline, emphasizing Gujarat's unique challenges due to urbanization and tribal needs. Highlighting Gujarat's robust economic growth, Patel stressed the importance of performance indicators and tailored financial support to enhance the state's contribution to India’s development.

In a significant interaction, Gujarat Chief Minister Bhupendra Patel exhorted the 16th Finance Commission to incentivize states maintaining fiscal prudence. Speaking at the meeting, CM Patel argued that such recognition would not only validate responsible financial management but also motivate other states to adopt similar practices.

On their visit to Gujarat, Finance Commission members engaged with state officials, with CM Patel underscoring the necessity of accounting for Gujarat's realities, like rapid urbanization and tribal community needs, in funding decisions. He also pointed out that supporting states which are progressing well, such as Gujarat, would strengthen financial standing.

Dr. Arvind Pangarhia, Chairman of the Commission, praised Gujarat's economic trajectory, highlighting its 8.5 percent growth rate over the last decade. He likened Gujarat's development strategy to that of South Korea and Taiwan and commended the state for its resilience through the COVID-19 pandemic.

As Gujarat prepares for the Finance Commission's report due by October 2025, CM Patel expressed anticipation for the Central Government's resources to fulfill the vision of Developed India 2047. He emphasized that the Finance Commission should focus on performance metrics that reflect efficiency and outcomes for effective resource allocation.

Finance Minister Kanubhai Desai, during the discussions, advocated for performance-based recognition in areas pivoting on national goals like renewable energy and climate change. The comprehensive presentation by Gujarat was a testament to its strategic focus and commitment to national progress.

(With inputs from agencies.)