Team Goemkarponn
PANAJI: The 16th Finance Commission has recommended a total grant of ₹1,049 crore for Goa for the five-year period from 2026-27 to 2030-31, a proposal that has been accepted by the Union government. While the amount is substantially lower than Goa’s demand of ₹3,600 crore, it still represents a significant increase compared to the previous Finance Commission award.
The allocation marks a rise of nearly 49.85 per cent over the ₹700 crore granted to Goa by the 15th Finance Commission for the period starting 2020-21. However, the Commission rejected the State’s plea to increase the share of States in central tax devolution from 41 per cent to 50 per cent, with the Centre deciding to retain the existing 41 per cent vertical devolution for all States.
As per the report presented in the Lok Sabha by Union Finance Minister Nirmala Sitharaman, the largest portion of Goa’s allocation—₹726 crore—has been set aside for urban local bodies (ULBs). Rural local bodies (RLBs) will receive ₹174 crore, while ₹149 crore has been earmarked for disaster management needs.
For the first year of the award period, 2026-27, ULBs are slated to receive ₹93 crore and RLBs ₹22 crore. These grants are structured to increase gradually over the years. In 2027-28, allocations are projected at ₹134 crore for ULBs and ₹29 crore for RLBs. The following year, 2028-29, ULBs are expected to receive ₹149 crore, while RLBs will get ₹37 crore.
The upward trend continues in 2029-30, with ULBs allocated ₹166 crore and RLBs ₹41 crore. In the final year, 2030-31, grants are projected to reach ₹184 crore for urban bodies and ₹45 crore for rural bodies.
Under disaster-related funding, the Commission has proposed ₹119 crore for the State Disaster Response Fund (SDRF) and ₹30 crore for the State Disaster Mitigation Fund (SDMF).
Notably, the report does not specify any dedicated sector-wise grants for key areas such as tourism, healthcare, education or renewable energy, despite these being highlighted as priority sectors by the Goa government during its submissions to the Commission.
At the same time, the Commission acknowledged Goa’s robust fiscal position. It noted that the State ranks among the top performers in terms of own-revenue-to-GSDP ratio. For 2023-24, Odisha topped the list with 13.8 per cent, followed by Goa at 13.2 per cent and Chhattisgarh at 10.6 per cent.
The report further observed that Goa, along with Sikkim and Arunachal Pradesh, records the highest per capita spending on health and education. It also highlighted that Goa consistently receives higher per capita tax devolution than the national average. According to the Commission, Goa is the only State that has received a share in tax devolution higher than its population share across all five Finance Commissions. Under both the 14th and 15th Finance Commissions, the State received more than three times the national average in per capita devolution.
