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Kerala Budget 2026-27: Medium Term Fiscal Policy statement echoes Kerala’s expectations of better deal from 16th Finance Commission
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The Hindu - Home
With the 16th Finance Commission awards expected to be made public soon, Kerala is expecting a higher devolution of taxes and grants-in-aid, including revenue deficit (RD) grant, from the Commission’s recommendations.
“The share of Central Taxes is projected to grow at 53.80% in anticipation of higher devolution from the 16th Finance Commission.
Kerala is also expecting its Own Tax Revenue to increase to ₹94,002.47 crore and non-tax revenue, to ₹20,355.77 crore.
State Own Tax Revenue is estimated to grow at 12% in the forward estimate period.
The share of Central taxes and grants-in-aid is also estimated to grow at 10% and 5% respectively in the forward estimate period.