MP: 16th Finance Commission discusses state's financial needs with rural, urban bodies in Bhopal

IANS March 6, 2025 263 views

The 16th Finance Commission, led by Arvind Panagariya, is conducting comprehensive financial assessments in Madhya Pradesh this week. Meetings with urban local bodies in Bhopal are focusing on tax devolution and urban development strategies. The commission is considering the state's unique demographic challenges, particularly its large tribal population. Madhya Pradesh currently seeks to increase its central tax share from 7.85% to nearly 9%.

"The grants should consider that Madhya Pradesh has the highest tribal population in the country" - Finance Commission Official
Bhopal, March 5: The 16th Central Finance Commission, led by Chairman Arvind Panagariya, held discussions with representatives of rural and urban bodies in Bhopal on Wednesday.

Key Points

1

16th Finance Commission assesses state's financial requirements

2

Four mayors participate in Bhopal consultation

3

Seeking increased share of central taxes

4

Technology grants proposed for urban services

The Commission led by its chairman Panagariya has arrived in Bhopal on Wednesday to assess the state's financial needs and tax devolution.

As representatives of urban local bodies, four mayors participated in the meeting, including Indore Mayor Pushyamitra Bhargav, Satna Mayor Yogesh Tamrakar, Khandwa Mayor Amrita Yadav, and Bhopal Mayor Malti Rai.

Additionally, 11 other municipal council and municipal committee presidents were present from different districts in Madhya Pradesh.

"During the discussion, it was requested that the grants allocated to urban local bodies in the state consider the fact that Madhya Pradesh has the highest tribal population in the country," an official said.

A separate grant was also proposed to encourage the use of technology for improving public services in urbanisation efforts, it added.

The delegation will also hold a discussion on the state's financial need during a meeting at the Kushabhau Thakare convention center in Bhopal on March 6, Chief Minister Mohan Yadav has said on Tuesday.

Besides holding meetings in Bhopal, the commission would visit other parts of the state and hold discussions with public representatives, senior officials between March 5 and March 8, according to official information.

On March 7, the Commission members will be visiting the state financial city Indore. They will visit the biogas plant of Indore Municipal Corporation and the Special Economic Zone (SEZ) at Pithampur.

Notably, Madhya Pradesh currently receives 7.85 per cent share in the Central taxes but is seeking an increase to nearly 9 per cent.

The state receives the third-highest devolution in the country and has deployed a dedicated team of senior finance department officials to make a strong case for a larger share.

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