The Centre’s decision to retain States’ share in the common pool of taxes at 41% for 2026–31 has sparked criticism from opposition leaders. Finance Minister Nirmala Sitharaman tabled the Sixteenth Finance Commission report in the Lok Sabha on February 1, 2026, setting the framework for tax devolution between the Centre and States. Several States, including Karnataka and Kerala, had sought a higher 50% share, citing rising fiscal responsibilities.
