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Small reward for ‘performers’

Financial Express Hyderabad

|

February 02, 2026

IN WHAT MAY cause some unease, the biggest gainers among states from the horizontal distribution of the tax pool continue to be the bigger, laggard states.

- SAURAV ANAND

This is despite the 16th Finance Commission making an effort to strike a balance between equity and efficiency in the tax-sharing framework.Under the 16th Finance Commission (2026-31), Uttar Pradesh retains its position as the single-largest beneficiary, receiving 17.62% of the states’ share in the divisible pool, only marginally lower than 17.94% under the 15th Finance Commission (2021-26).

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