Jharkhand Pushes for Greater Share of Central Taxes and New Fiscal Policies

The Jharkhand government has formally requested the Sixteenth Finance Commission to boost the state's share of central taxes from 41 percent to 50 percent. During discussions with a Finance Commission team, headed by Dr. Arvind Panagariya, state officials emphasized the importance of addressing fiscal imbalances due to GST implementation.

The state proposed the introduction of a 'GST Disadvantage Index' to compensate for tax revenue losses inherent to its role as a producing state. Demands were also made to increase the population and income distance weights for horizontal devolution, citing Jharkhand's low per capita income.

Chief Minister Hemant Soren highlighted the significance of addressing environmental and social challenges due to mining, while advocating for the autonomy to manage finances tailored to local needs. Soren also pressed for the release of significant funds owed by mining companies. The Finance Commission continues its consultation throughout Jharkhand, aiming for holistic development amid economic and environmental complexities.

(With inputs from agencies.)