Bhubaneswar: Odisha Chief Minister Mohan Charan Majhi has sought ₹12,59,148 crore from the 16th Finance Commission for the period 2026-31, outlining a financial roadmap to achieve ‘Samruddha Odisha by 2036’.
During an extensive deliberation with Finance Commission Chairman Dr. Arvind Panagariya and other members at ITC Hotel, Bhubaneswar, the Chief Minister presented the state’s financial requirements across various categories, seeking substantial fiscal support to strengthen Odisha’s economic and infrastructural development.
The Chief Minister specified that Odisha has sought ₹9,88,422 crore to cover Pre-Devolution Revenue Deficit, ₹1,10,434 crore for State-Specific Needs, ₹1,00,036 crore as Grants to Local Bodies, ₹31,004 crore for Disaster Response, and ₹29,252 crore for Disaster Mitigation. He emphasized that this financial assistance is crucial for ensuring Odisha’s continued growth, improving public services, and strengthening disaster resilience in a state frequently affected by natural calamities.
Speaking to the media after the meeting, Majhi described the discussion with the Finance Commission as constructive and forward-looking. He said that the state has placed its demands before the Commission, expecting a fair and favorable consideration. The state government has also submitted a detailed memorandum outlining Odisha’s financial needs for the period from 2026 to 2031.
The Chief Minister highlighted that the share of states in the divisible pool currently stands at 41 percent and urged that this be increased to 50 percent to provide states with greater financial resources. He further noted that the Gross Tax Income of the Government of India is distributed among states based on a defined formula, which currently places Odisha’s share at 4.528 percent. The state has requested that this share be enhanced to 4.964 percent to ensure a fairer allocation of national revenue.
Additionally, the Chief Minister pressed for an increase in grants for rural and urban local bodies, suggesting that the 16th Finance Commission peg these grants at 2 percent of the projected gross revenue receipts of the Union for the award period of 2026-31. This, he said, would significantly enhance the financial capacity of Odisha’s local governance institutions, enabling better public service delivery at the grassroots level.
The state government has also sought full central funding for the State Disaster Response Fund (SDRF). Currently, the Central Government bears 75 percent of the SDRF corpus, with the remaining 25 percent being the responsibility of the state. The Chief Minister urged that the Centre bear 100 percent of this grant, given Odisha’s vulnerability to frequent cyclones and other natural disasters. He also called for specific-purpose grants for health, water supply and sanitation, and old-age security, stressing that these sectors require urgent investment for inclusive development.
The high-level meeting was attended by Chief Secretary Manoj Ahuja, Development Commissioner Anu Garg, State Finance Secretary Sashwat Mishra, and other senior officials. With the 16th Finance Commission set to finalize its recommendations for 2026-31, Odisha remains hopeful that its fiscal demands will be considered favorably, ensuring that the state continues on its path toward sustainable economic growth and development.