The union government on Monday informed the Rajya Sabha that it has no plan to provide special assistance to states like Kerala, which suffer from the decline in share of taxes due to reduced population growth rates.
Union Minister Rao Inderjit Singh was giving a written reply to an unstarred question raised by Rajya Sabha MP Dr V Sivadasan.
The MP had also asked whether the “NITI Aayog has conducted any study regarding the problem faced by States like Kerala where ‘reduction in population growth rate due to social development’ has led to ‘reduction in the share of taxes from the divisible pool’.” Singh replied no to it.
The development comes at a time when the CPM-led Kerala government’s accusation that the union government reduced the IGST share is in the limelight. The state government has been blaming the union government for delaying and denying relevant funds. The union government has refuted the narrative.
Meanwhile, Union Finance Minister Nirmala Sitharaman stated in reply to a question raised in the Lok Sabha asking whether the Government is facing any problem regarding sharing of revenue among Centre and States in the absence of 16th Finance Commission; that the revenue sharing takes place as per recommendations of the present financial commission in tenure, the 15th FInancial Commission.
In addition, it was added that, “The 15th Finance Commission award period is for six (6) years till 31.03.2026. Usually a Finance Commission takes two years to prepare its report. The award period of the 16th Finance Commission would commence from 1st April, 2026. Therefore, there is no delay, due or undue, in constitution of the 16th FC”, addressing the allegation of delay in the constitution of the financial commission.
“The award period of 15th Finance Commission is upto March 31, 2026. Hence, sharing of revenue among Centre and States upto March 31, 2026 is being done as per accepted recommendations of 15th Finance Commission. In so far as the revenue share of states is concerned, the same is determined by recommendations of the Finance Commission”, it was further clarified.
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