Overview

• More than 22 of India’s 28 states have requested raising their share of central taxes from the current 41% to 50%.
• Uttar Pradesh has formally sought a 50% tax share along with a dedicated District Development Authority fund for targeted schemes.
• The state proposed lowering weightages for income distance, geographical area, demographic performance and forest cover while increasing those for population and tax collection effort.
• Chairman Arvind Panagariya applauded Uttar Pradesh’s high own-tax-to-GSDP ratio, low fiscal deficit and manageable debt-to-GDP ratio.
• The Commission’s recommendations on tax devolution for 2026-27 to 2030-31 are due for submission to the President by October 31, 2025.