Lucknow: Senior officials in Uttar Pradesh are working round the clock to finalise the state government’s demands for a greater share in central funds as the 16th Finance Commission, led by chairman Arvind Panagariya, begins its official tour of the state from Ayodhya on Tuesday.
The commission will reach the state capital later in the evening after visiting key development sites and offering prayers at the Ram Temple in Ayodhya. The visit is crucial for the Yogi Adityanath-led government, which is keen on projecting the state’s strides in development, law and order, and economic transformation, while making a strong case for enhanced financial support.
Chief Minister Yogi Adityanath on Monday reviewed the detailed presentation to be made to the Finance Commission. “Yes, the state government will demand a greater share in the divisible pool with special consideration for Uttar Pradesh. We are focused on achieving zero poverty and transforming UP into a trillion-dollar economy,” said state finance minister Suresh Khanna.
The divisible pool refers to the central government’s gross tax revenue that is shared with states. Despite Uttar Pradesh receiving the highest share in absolute terms, its percentage declined slightly—from 17.959% to 17.931%—following the 15th Finance Commission’s recommendations for the 2021–2026 period. This followed a cut in the overall state share from 42% to 41% to accommodate the newly created Union Territories of Jammu & Kashmir and Ladakh.
Government sources say Uttar Pradesh will push for a greater weightage to population in the allocation formula, given its size and development needs. The state will also highlight its efforts to boost revenue generation and enhance forest cover.
“We hope the 16th Finance Commission will revise the formula in favour of larger states and give special consideration to UP,” a senior official said on condition of anonymity.
Under the 15th Finance Commission’s criteria, 15% weightage was given to population, 15% to area, 10% to forest and ecology, 45% to income distance, 12.5% to demographic performance, and 2.5% to tax effort. In contrast, the 14th Commission had given 17.5% weight to the 1971 population and 10% to the 2011 population, alongside a 7.5% weightage to forest cover.
During its visit, the commission will hold discussions with representatives from Panchayati Raj Institutions, urban local bodies, industry leaders, political parties, and the media. A formal presentation will be made by the state government on Wednesday, showcasing Uttar Pradesh’s development journey, preparations for the Maha Kumbh 2025 in Prayagraj—which drew 66 crore pilgrims—and future economic goals.
The Chief Minister will also host a dinner for commission members on Tuesday evening. On Thursday, the panel will travel to Varanasi before heading back to New Delhi.
