Odisha’s Share in Rural Body Grants Has Increased Under 16th Finance Commission

Paperman Media ( Bhubaneswar )- The Panchayati Raj and Drinking Water Department has clarified that Odisha’s share in grants for Rural Local Bodies has increased from 3.72% under the 15th Finance Commission to 4.30% under the 16th Finance Commission, contrary to the impression that the State’s share has declined.

Under the 16th Finance Commission, Odisha’s Rural Local Bodies will receive ₹18,715 crore over five years from 2026-27 to 2030-31.

For comparison, Odisha received ₹11,058 crore over six years from 2020-21 to 2025-26 under the 15th Finance Commission. This means that while the earlier allocation covered six years, the new allocation of ₹18,715 crore is for only five years.

In fact, the average annual allocation to Odisha has more than doubled. The average annual allocation was around ₹1,843 crore during the 15th Finance Commission period, compared to around ₹3,743 crore per year under the 16th Finance Commission.

The increase in allocation has been made possible by the growth in the overall pool of Central tax revenues. As the country’s economy and tax revenues have expanded, the resources available for Rural Local Bodies have also increased.

Therefore, the 16th Finance Commission has resulted in a higher share and substantially higher annual allocation for Odisha’s Rural Local Bodies, rather than a reduction in the State’s share.