Lucknow— In a high-level meeting with the Chairperson, Members, and delegation of the 16th Finance Commission, Chief Minister Yogi Adityanath, senior Cabinet Ministers, and state officials laid out a comprehensive plan to boost Uttar Pradesh’s growth trajectory and seek financial cooperation for the period 2026–2031.
The meeting began with a formal welcome by the Chief Secretary, who highlighted the state’s progress in recent years. The discussions revolved around increasing the states’ share in divisible central taxes, strengthening urban and rural infrastructure, and promoting sustainable and inclusive development.
Key Proposals and Requests Made:
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Increase in States’ Share in Central Taxes:
UP government urged the Commission to raise the states’ share in the divisible central pool from the current 41% to 50%, citing increased responsibilities of states in maintaining law and order, providing social infrastructure, and aligning with national goals like Viksit Bharat@2047 and SDG 2030.
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Horizontal Distribution Formula:
The state proposed that the distribution formula between states be based on:-
2011 population – 22.5%
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Area – 10%
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Income distance – 45%
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Tax effort – 10%
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Demographic performance – 7.5%
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Expanded forest definition (including open forest and tree cover) – 5%
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Infrastructure and Grant Proposals:
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Urban Development:
With rising urbanisation, grants were sought for drainage systems, internal roads, sewerage, civic infrastructure, and institutional strengthening in municipal areas. Special emphasis was placed on developing the State Capital Region. -
Panchayati Raj Institutions:
Funding was requested for building community halls, block headquarters, and other infrastructure for gram panchayats, block panchayats, and zila parishads for the 2026–31 period. -
Tourism Promotion:
With immense tourism potential, UP proposed infrastructure development across 12 major circuits including:
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Ramayan Circuit
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Mahabharata Circuit
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Buddhist Circuit
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Krishna-Braj Circuit
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Shaktipeeth Circuit
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Eco-Tourism
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Kashi–Prayagraj–Ayodhya Spiritual Triangle
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Disaster Management Reform:
The state demanded a shift in funding from post-disaster relief to prevention, preparedness, and mitigation, proposing to raise state-declared disaster expenditure from 10% to 25% and alter SDRMF funding ratio to 90:10 (Centre:State). -
Industrial Corridors:
Grants were sought for 100-acre industrial land in all 75 districts and for the development of industrial corridors along expressways. -
CM Model Schools:
UP proposed the establishment of modern schools in every block and panchayat with facilities like smart classrooms, libraries, sports grounds, ICT labs, and robotics, seeking aid for infrastructure and technology deployment.
Positive Review from Commission:
The 16th Finance Commission acknowledged the significant improvement in law and order in Uttar Pradesh and appreciated the rising investment levels. The state’s robust revenue performance and improved financial health were also recognized.
This meeting sets the stage for Uttar Pradesh’s ambitious next phase of development, with the government pushing for increased autonomy, targeted grants, and strategic partnerships for holistic growth.
