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Jharkhand Demands ₹3.03 Lakh Crore and 50% Tax Devolution in 16th Finance Commission Submission

Jharkhand argues that its development and security challenges have been exacerbated by underinvestment and billions of rupees in unpaid corporate dues.

16th Finance Commission meeting

Overview

  • Finance Minister Radha Krishna Kishore met Finance Commission chair Arvind Panagariya in Ranchi to formally seek ₹3.03 lakh crore over five years for health, education, infrastructure and rural livelihoods.
  • The state urged increasing its vertical devolution of central taxes from 41% to 50%, arguing that GST implementation has reduced revenues for a primarily producing economy.
  • Jharkhand highlighted ₹1.36 lakh crore in unpaid dues from coal companies and additional shortfalls under central schemes and GST compensation, demanding these be cleared in the commission’s recommendations.
  • Officials pointed to stark social deficits—with 65% of women anaemic and 40% of children under five malnourished—while noting a 9.8% projected GSDP growth and a fiscal deficit of 2.27%.
  • The memorandum requested special Security Related Expenditure support for 19 Maoist-affected districts and proposed revising horizontal devolution criteria to raise population and income-distance weightings.