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Uttarakhand Seeks Greater Tax Share for Forest Conservation in Finance Talks

The 16th Finance Commission praised the state's fiscal management as it advocated for increased ecological compensation and special grants.

Uttarakhand chief minister Pushkar Singh Dhami welcomes 16th Finance Commission chairman Arvind Panagariya before a meeting at Secretariat, in Dehradun on Monday. (Pushkar Singh Dhami - X)
X/@pushkardhami
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Overview

  • Uttarakhand has requested the Finance Commission to raise the weight for forest and ecology in tax-sharing from 10% to 20% and for area from 15% to 20%.
  • Chief Minister Pushkar Singh Dhami highlighted the state's challenges, including 'eco-service costs' from over 70% forest cover and locational disadvantages.
  • The state also sought special grants for forest management, disaster preparedness, and infrastructure development for pilgrimage sites.
  • Finance Commission Chairman Arvind Panagariya commended Uttarakhand's balanced fiscal deficit, rising per capita income, and strong SDG performance.
  • The Finance Commission will continue consultations with local bodies and submit its final report to the central government by October 31, 2025.