SENSEX
NIFTY
GOLD
USD/INR

Weather

image 13    C

Economy News

The Economic Times

Economy / The Economic Times

details

16th Finance Commission keeps states tax share at 41%

The Sixteenth Finance Commission proposes ending revenue deficit grants. States' share in divisible taxes remains 41% from April 1, 2026. A new criterion, states' GDP contribution, is added for fund distribution. Stricter fiscal discipline is advised for states. The Centre has accepted most recommendations, including vertical and horizontal devolution.

2 Feb 2026 12:29 am