Economy News

Share of central taxes from 2026

March 3 , 2025 3 days 163 0

The government is looking to cut central tax revenues that it shares with states.
The Finance Commission of India makes recommendations on tax sharing along with other aspects of centre-state fiscal relations.
The Arvind Panagariya-led panel will submit its recommendation by October 31, with an aim of getting it implemented from the financial year 2026-27.
The central government is likely to recommend a reduction in the share of tax revenue going to states to at least 40% from the current 41%.
The 1% swing in the states’ share of the tax revenue could give the central government about Rs 3,500 crore.
The share of taxes going to the state governments has increased from 20% in 1980 to 41% now.