The Odisha government on Thursday pressed forth the demand for the Centre to bear 100% funding of the annual corpus of State Disaster Response Force (SDRF) keeping in view the fact that the state encounters recurring natural disasters and grants for post-disaster rebuilding and reconstruction.
Chief Minister Mohan Majhi in an elaborate discussion here with the Chairman of 16th Finance Commission headed by Dr Arvind Panagariya and other members placed the State’s overall fiscal roadmap including the SDRF issue.
Advertisement
“Towards SDRF, the State bears 25% while the rest 75% is borne by the Central Government. Demand has been made so that the Central Government should bear 100% of the grant. Apart from the above, the Commission may recommend grants for specific purpose transfer for health, water supply & sanitation and old age security,” CM Majhi said.
Besides, CM Majhi sought for Rs 12,59,148 crore from 16th Finance Commission for the five-year period from 2026-31 to help the State in steering the roadmap to ‘Samruddha (developed) Odisha’ by 2036’.
Specifying the demands in different categories, the CM said we have sought Rs 9,88,422 crore to make up for Pre-Devolution Revenue Deficit, Rs 1,10,434 Crore for State Specific Need, Rs 1,00,036 Crore as Grants to Local Bodies, Rs 31,004 Crore for Disaster Response and Rs 29,252 Crore for Disaster Mitigation.”
“We had a constructive discussion with the Commission on various aspects of the State. We have put forth our demands before the Commission concerning State’s developmental needs, fiscal capacity and the proposed fiscal transfer system with a hope that the Commission would consider our submission favourably and reflect in their report covering the period from 2026-2031. We have also made a written submission before the Commission in the shape of a Memorandum covering all aspects and requirements of the State”, CM Shri Majhi said.
He further added that the shares of the states in the divisible pool are 41%. We have placed demand to enhance this to 50%. Besides, Gross tax income of the Government of India is distributed among the states on the basis of a defined formula.
Accordingly, the share of Odisha stands at 4.528%. We have placed a demand to enhance the share of Odisha to 4.964 %. The 16th Finance Commission may peg combined grants for all rural and urban local bodies at 2% of the projected gross revenue receipts of the Union for the award period of 2026-31. This will enhance grants for local bodies of the State, the CM said.
Chief Secretary, Manoj Ahuja, Development Commissioner, Anu Garg, State Finance Secretary, Sashwat Mishra and other state officials also graced the occasion.
