Fri Feb 07 00:00:00 UTC 2025: ## Odisha Demands Increased Share of Tax Revenue from Finance Commission

**Bhubaneswar, Odisha –** Odisha has joined the chorus of states urging the Fifteenth Finance Commission to significantly increase the share of divisible tax pool allocated to states. Currently, states receive approximately 41%, but Odisha, along with many other states, is advocating for a 50% share.

Chief Minister Mohan Charan Majhi, during a meeting with the Commission’s chairman, Arvind Panagariya, presented Odisha’s case. The state requested its share of the divisible pool be raised from 4.528% to 4.964%. Furthermore, Odisha seeks a 100% central contribution to the State Disaster Relief Fund, up from the current 75%, citing the state’s frequent disaster occurrences.

The state government also proposed a revised formula for tax devolution, arguing against using the entire population as a determinant. Instead, Odisha suggests a modified population variable that considers vulnerable groups like Scheduled Castes and Tribes, the elderly, and widows, to better reflect government liabilities. The state also criticized the use of area as a proxy for population density.

Mr. Panagariya acknowledged the widespread demand for a higher state share, noting that while many states sought 50%, some suggested a minimum of 45% would suffice. Odisha’s total request from the Commission for the five-year period from 2026-27 to 2030-31 amounts to ₹12,59,148 crore. The state aims to use these funds to achieve its “Samruddha Odisha” (Prosperous Odisha) vision by 2036.

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