DW BUREAU / Chandigarh

The 16th Finance Commission chaired by Arvind Panagariya held a meeting with Haryana Chief Minister Nayab Singh Saini and senior state officials here on Monday.

The chief minister, who also holds the finance portfolio, along with senior state government officers, held detailed discussions regarding key fiscal matters and financial strategies for the state, a state government statement said.

The meeting focused on addressing financial issues and enhancing the allocation of resources for Haryana's economic growth.

Chief Secretary Anurag Rastogi and other senior state government officials gave a detailed presentation about Haryana's journey since its formation in 1966 to becoming one of the leading contributors to India's economic growth.

The commission was apprised by the officials that despite the low central devolution, the fiscal deficit and liabilities have been maintained within the targets specified by the Finance Commission.

Speaking to reporters here after the meeting, Panagariya said, "We had a long meeting with Haryana CM, Chief Secretary, Chief Principal Secretary and other officials". "...The big focus was on the finances and even within that, a major pitch made in the presentation was that over the years Haryana has received less than what is due in terms of the devolution of tax revenues.

"Haryana made a very fine pitch on that. My own reaction was that it has a good case and has made a good case on the enhancement of devolution to it," Panagariya told reporters.

On vertical devolution, Panagariya said Haryana's recommendation was very similar to most of the other states. "Most of the other states have said that devolution to the states should be increased from its current level of 41 per cent of the divisible pool to 50 per cent. That is a big ask, for the commission to make such a large jump, it is very unusual, not unprecedented though, but that has been the pitch of most of the states," he noted.

On horizontal devolution, he said Haryana had a very different set of suggestions as to how the share of the states ought to be divided among them.

"I think, this is the major part of recommendations Haryana has made," he added.

The commission's mandate is to make recommendations on how the tax revenue should be divided between the centre and states and then among the states.

"In the process of our work, the Commission visits every single state. Since June 2024, we have been visiting various states and today Haryana is 24th such state we have visited," Panagariya said.

According to the state government statement, the presentation also highlighted Haryana's steady progress towards equitable fiscal federalism backed by strong economic fundamentals and a visionary roadmap for the future.

The commission was apprised that Haryana's gross state domestic product (GSDP) for 2024-25 is estimated at Rs 6,77,033 crore.

It was further shared that Haryana boasts the second-highest per capita income among major states at Rs 3,53,182. Additionally, Haryana holds the distinction of being the first state in India to procure all crops grown within its territory at minimum support price (MSP).

It was informed that Haryana ranks 5th in terms of share of contribution to India's overall GST collections for the year 2024-25.

(editor@dailyworld.in)