Bhubaneswar: In a significant move to bolster Odisha’s fiscal strength and developmental aspirations, Chief Minister Mohan Charan Majhi has sought ₹12.59 lakh crore from the 16th Finance Commission for the five-year period spanning 2026-31. During an extensive deliberation with the Commission, led by Chairman Dr. Arvind Panagariya, the state put forth key demands, including an increase in Odisha’s share in central tax devolution and full central funding for disaster relief.
The meeting, held at ITC Hotel in Bhubaneswar, was part of the Commission’s visit to Odisha from February 4 to 7. Presenting a detailed memorandum, CM Majhi underscored the necessity of enhanced fiscal transfers to realize the state’s vision of Samruddha Odisha by 2036. The Chief Minister outlined the state’s specific requirements, including ₹9.88 lakh crore to address the pre-devolution revenue deficit, ₹1.10 lakh crore for state-specific needs, ₹1 lakh crore in grants for local bodies, ₹31,004 crore for disaster response, and ₹29,252 crore for disaster mitigation.
Speaking to the media after the meeting, CM Majhi emphasized the need for a favorable response from the Commission, given Odisha’s developmental priorities and fiscal capacity. “We have urged the Commission to consider our demands seriously, particularly in light of the state’s revenue needs and ongoing welfare programs,” he stated.
Among Odisha’s key proposals is an increase in the states’ overall share in the divisible pool of central taxes from the current 41% to 50%. The state has also demanded that its own share in the Centre’s gross tax revenue be raised from 4.528% to 4.964%, ensuring a more equitable distribution of resources. Additionally, the state has recommended that the combined grants for rural and urban local bodies be pegged at 2% of the Union government’s projected gross revenue receipts for 2026-31.
The CM also pressed for a crucial reform in disaster relief funding, urging that the Centre bear 100% of the State Disaster Response Fund (SDRF) grant, as opposed to the current arrangement where the state contributes 25%. “Odisha is highly vulnerable to natural disasters, and it is imperative that the burden of relief and mitigation is fully supported by the Central Government,” he stated.
Apart from these, the state has also proposed special grants for sectors such as healthcare, water supply, sanitation, and old-age security.
The meeting was attended by key officials, including Chief Secretary Manoj Ahuja, Development Commissioner Anu Garg, and State Finance Secretary Sashwat Mishra. The state government expressed optimism that the Finance Commission would duly consider these demands while finalizing its recommendations for the 2026-31 fiscal period.
Beta feature
Beta feature