Overview

• Maharashtra has formally requested an increase in its share of central tax revenues from 41% to 50%, along with the inclusion of cesses, surcharges, and non-tax revenues in the divisible pool.
• The state is seeking a ₹1.28 lakh crore special assistance package, with ₹1.17 lakh crore allocated for major infrastructure projects, including the Mumbai Metropolitan Region master plan and river-linking initiatives.
• Local body funding demands include raising grants to 5% of the divisible pool, performance-linked incentives, and support for neonatal health and urban infrastructure development.
• The state has also called for increased disaster resilience funding, proposing a 90:10 Centre-State sharing ratio for the State Disaster Response Fund and dedicated allocations for climate adaptation and urban flood resilience.
• The 16th Finance Commission has acknowledged the legitimacy of Maharashtra's demands and will review them ahead of its final recommendations, due by May 31.