UP News: States Demand 50% Share In Central Taxes; Finance Commission Considers Proposals During Lucknow Meet

UP News: States Demand 50% Share In Central Taxes; Finance Commission Considers Proposals During Lucknow Meet

During a press briefing at Lok Bhawan, commission head Panagariya clarified that while some increase may be possible, meeting the full 50% demand would be difficult.

UP State BureauUpdated: Thursday, June 05, 2025, 06:31 AM IST
article-image

The Finance Commission held discussions in Lucknow on revising the share of central taxes allocated to states. Currently, 41% of central tax revenue is distributed among states, states have demanded an increase to 50%.

During a press briefing at Lok Bhawan, commission head Panagariya clarified that while some increase may be possible, meeting the full 50% demand would be difficult. The Commission’s recommendations, once finalized, are submitted to the President of India, who usually accepts them.

UP officials presented special proposals, suggesting a reduction in area based share from 15% to 10%, and forest/environment share from 10% to 5%. The state also asked for 10% weightage based on tax collection and 7.5% on demographic performance.

Panagariya acknowledged UP's top ranking in GST collection, calling it a sign of economic strength. He said the Commission evaluates each state's fiscal needs through regional visits and will consider UP's requests seriously.

Beyond tax distribution, the Commission also proposes allocations for panchayats, urban bodies, and disaster relief, areas critical to states like UP. Final recommendations will aim for balanced and fair resource sharing.

RECENT STORIES

Bihar Elections 2025: Jan Suraj Founder Prashant Kishor Suffers Rib Injury, Departs For Patna To...

Bihar Elections 2025: Jan Suraj Founder Prashant Kishor Suffers Rib Injury, Departs For Patna To...

Punjab: Software Engineer Detained For Golden Temple Bomb Threat Emails; Police Probe Ongoing

Punjab: Software Engineer Detained For Golden Temple Bomb Threat Emails; Police Probe Ongoing

Amethi-Made AK-203 'Sher' Rifles To Strengthen Indian Army Under ₹5,200 Crore Indo-Russian Deal

Amethi-Made AK-203 'Sher' Rifles To Strengthen Indian Army Under ₹5,200 Crore Indo-Russian Deal

Rajasthan Shocker: Chittorgarh Govt School Teacher Arrested For Forcing Students Into Obscene Acts,...

Rajasthan Shocker: Chittorgarh Govt School Teacher Arrested For Forcing Students Into Obscene Acts,...

'She Wanted To Die, I Killed Her,' Man Tells Cops After Poisoning Ex-Live-In Partner To Death In...

'She Wanted To Die, I Killed Her,' Man Tells Cops After Poisoning Ex-Live-In Partner To Death In...