Kerala seeks 50% share of divisible tax pool: Central Finance Committee
The government of Kerala has urged the 16th Finance Commission to increase its share of the divisible tax pool from the 41 per cent recommended by the 15th Finance Commission to 50 per cent.
The request comes as the state seeks a larger share of the Rs 616.41 crore divisible pool, with recommendations for adjustments based on population, area, and demographic performance.
Arvind Panagariya, the Chairman of the Central Finance Committee, on Tuesday deliberated on the ongoing discussions regarding the Finance Commission's recommendations for dividing the divisible tax pool between the central government and the states.
Regarding Kerala's plea, Panagariya said that the state is seeking a larger share from the divisible pool. "Till date, we have visited 14 states, including Kerala. The state (Kerala) pleads that from 41 per cent, which is what the 15th Finance Commission had recommended, the 16th Finance Commission should increase it to 50 per cent,"
Panagariya added. He also revealed that Kerala's plea is for a reduction in the income-based share of the divisible pool. "Kerala's recommendation is that the portion of the divisible pool divided among the 28 states based on income differences should be only 30 per cent, compared with 45 per cent in the case of the 15th Finance Commission," he said.
