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16th Finance Commission: Among poll-bound states, Kerala sees spike in tax share, Bengal dips

February 08, 2026 6:33 am

Assam, Tamil Nadu also get higher share in Union taxes, even as 16th FC flags Bengal's Lakshmir Bhandar scheme to highlight the rising burden of subsidies on the states' exchequer

Knowledge Nugget |16th Finance Commission Report: Key highlights for UPSC and other competitive exams

February 06, 2026 11:04 am

With the Centre's acceptance of the 16th Finance Commission's recommendations, understanding Article 280, tax devolution, and the new criteria reshaping Centre-State fiscal relations becomes crucial. Here's all you need to know. Also, go 'Beyond the Nugget' to know about the key channels through which resources flow from the Union to the States.

Finance Commission strikes a new balance

Finance Commission strikes a balance – addresses southern states' concerns, and equity

February 03, 2026 8:12 am

States have been demanding not only an increase in their share in the divisible tax pool but also that the issue of growing cesses and surcharges be addressed. In this context, the 16th Finance Commission has tried to strike a balance, while keeping in mind concerns of equity

Cash transfers now take 20% of state subsidies — 16th finance panel sounds alarm, seeks exit clauses

February 03, 2026 9:13 am

At present, the largest such schemes are Maharashtra’s Majhi Ladki Bahin Yojana, Karnataka’s Gruha Lakshmi, and West Bengal’s Lakshmir Bhandar, the 16th Finance Commission report states.

Discom debt surge poses fiscal risk, Maharashtra in high stress group, says Finance Commission

February 02, 2026 8:18 pm

The commission notes that “mounting debt, short-term borrowing, and accumulated losses have been a perpetual burden on Discom finances”, adding that fiscal stress in the sector is now heavily concentrated in a small number of states.

‘Urgent need to revamp drainage system’: 16th Finance Commission recommends Rs 56,100 crore for wastewater management

February 02, 2026 3:07 pm

Twenty-two cities, including Pune, Jaipur and Howrah, are eligible for the 16th Finance Commission’s special component for wastewater projects. It also recommended a Rs 10,000 crore premium to incentivise the transition from rural to urban.

Finance Commission recommends Rs 66,100-cr grant for urbanisation, revamp of drainage in cities

February 02, 2026 7:40 am

The report of the 16th Finance Commission, which was tabled in the Parliament on Sunday, said it’s primarily focussing on “accelerating urbanisation”.

Chief Minister Siddaramaiah told reporters in Mangaluru on Sunday that the state government was awaiting a response from the governor's office regarding the hate speech Bill.

Karnataka sees marginal rise in tax share under 16th Finance Commission; SDRF and grants for local bodies disappointing, says CM Siddaramaiah

February 01, 2026 7:55 pm

Karnataka’s share of taxes is pegged at 4.131 per cent as per the 16th Finance Commission report.

Give states their fair share, protect their fiscal space

December 02, 2025 3:24 pm

Both the Centre and the states need larger resources to meet multiple challenges. For this, tax receipts of both the Union and state governments must increase.

Singh urges focus on tourism, agro-processing, and labour-intensive industries to generate jobs and reduce forced migration.

N K Singh on Bihar economy: ‘Sustaining high growth of last 3 yrs should be aim … it is necessary but not sufficient for job creation’

November 08, 2025 6:26 am

“State ready for private investment. It is important for its bureaucrats to rise above the status quoist attitude and set an annual monitorable target of private capital investment,” says 15th Finance Commission chairman.