Sat Dec 07 14:55:07 UTC 2024: ## 16th Finance Commission Begins Kerala Visit to Determine State’s Tax Share
**Thiruvananthapuram, December 7, 2024** – The 16th Finance Commission, headed by Arvind Panagariya, commenced a three-day visit to Kerala on December 7th, 2024, to gather information for its upcoming report on tax devolution and state funding. The commission, received by Kerala’s Finance Minister K.N. Balagopal and Chief Secretary Sarada Muraleedharan in Kochi, will hold meetings with various stakeholders including the Chief Minister, Pinarayi Vijayan, state ministers, local government representatives, industry leaders, and political parties.
Discussions will focus on Kerala’s drastically reduced tax devolution – a decline from 3.875% under the 10th Finance Commission to a mere 1.92% under the 15th. The state government, armed with proposals drafted by a committee led by economist C.P. Chandrasekhar, aims to argue for a larger share of the divisible pool, currently at 41%. The Commission’s recommendations will significantly impact Kerala’s financial resources and local body funding. The state government has expressed confidence in presenting a compelling case to secure its fair share of funds.
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