4 months ago
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Finance Minister K.N. Balagopal on Saturday reiterated that Kerala is hoping for a amended woody from the 16th Finance Commission, having had its stock of the divisible taxation excavation chopped to 1.92% nether the erstwhile commission.
Speaking astatine a pre-State Budget consultation with the media here, Mr. Balagopal said if Kerala’s stock from the divisible excavation was further reduced, it could spell occupation for the State. The State’s stock of the divisible excavation was down to 1.92% nether the 15th commission from 3.88% nether the 10th commission. “Last time, Kerala had the lowest share. We are hoping that volition change,” helium said.
The 16th commission headed by Arvind Panagariya had submitted its report, meant for the play from 2026-27 to 2030-31, to President Droupadi Murmu in November 2025. The recommendations are expected to beryllium made nationalist soon.
Earlier, Kerala and States specified arsenic Assam, Jharkhand and Odisha had comparable percent arsenic a stock of the taxation pool, but Kerala’s was drastically cut. The State authorities has brought these issues to the attraction of the commission, Mr. Balagopal, who is scheduled to contiguous his sixth Budget connected January 29, said.
Extra borrowing limit
During the commission’s sojourn to Kerala successful December 2024, Kerala had urged it to rise the stock of States successful the divisible taxation excavation from the contiguous 41% to 50% and rework the look utilized for assets sharing among States. Kerala besides wanted the committee to urge measures for reducing the imbalances successful assets sharing among States. In September 2025, the Kerala authorities submitted a supplementary memorandum wherein it sought supplementary grants and eligibility for a “temporary other borrowing limit” of 0.5% of the Gross State Domestic merchandise (GSDP) to assistance it sorb the losses arising from the Goods and Services Tax (GST) slab rejig and the US reciprocal tariffs.
On Saturday, Mr. Balagopal also pointed retired that Kerala was not averse to nationalist backstage partnerships (PPP). He cited the Cochin International Airport Ltd (CIAL) arsenic an illustration of Kerala’s affirmative attack to the concept.
