Chandigarh, Feb. 3 -- Haryana will get a higher share in central taxes from the 2026-27 financial year with the central government increasing the state's inter-se share to 1.361%, the highest proportional increase among 14 states whose inter-se shares saw an upward revision on the recommendations of the 16th Finance Commission. The report of the 16th Finance Commission was tabled by Union finance minister Nirmala Sitharaman in the Parliament on Sunday. State officials said this 24.52% increase over the state's existing 1.093% share in central taxes was primarily due to a new criterion introduced by the 16th Finance Commission for horizontal devolution which factored in a state's contribution to the country's gross domestic product (GDP). "This would translate into a substantially higher devolution for the state from the divisible pool of central taxes. As compared to the 2025-26 fiscal, the state will get about Rs.5,547 crore more in 2026-27 from the state's share in central taxes," said an official. State officials said Haryana would get about Rs.20,772.33 crore in 2026-27 financial year, which is 1.361% of Rs.15,26,255 crore, the share of tax devolution fixed for all the 28 states by the Central government in 2026-27 budget estimates. In comparison, the state will get about Rs.15,225 crore in ongoing 2025-26 fiscal which is 1.093% of Rs.13,92,971 crore, the share of taxes for all the states as per 2025-26 revised estimates of union budget. Neighbouring Punjab (1.996%) and Himachal Pradesh (0.914%) also figure in the top six states with an increase of 10.46% and 10.12%, respectively, in share of central taxes. State officials said that during the April 28, 2025 meeting with the 16th Finance Commission headed by Arvind Panagariya to discuss the devolution of tax revenue, both vertical as well horizontal, among the Centre and states and amongst different states respectively, they had reasoned that despite being ranked among top contributors 7.12% of national GST, 3.62% in direct taxes and 3.71% of GDP, Haryana gets only 1.093% devolution, a disproportionately low share in tax devolution. Panagariya at a briefing in April 2025 had said that Haryana made a good case on enhancement of devolution. He had also said the state has a radically different set of suggestions on horizontal devolution as to how the share of the states ought to be divided among different states. Chief secretary Anurag Rastogi said that Haryana's average annual real gross domestic product growth from 2011-12 to 2022-23 fiscal was 6.8% which was much higher than all India average of 5.7%. "Despite driving India's GDP, Haryana ranks among the lowest in capital expenditure as % of GSDP - hindering long term growth and dampening investment attractiveness. The state in fact struggles to fuel its own growth with limited funds for capital expenditure," reads a finance department document presented before the 16th Finance Commission. While making a pitch for a higher devolution, the state government had in April 2025 asked the Finance Commission to take a re-look at the horizontal devolution criteria to ensure equitable fiscal federalism. The state government in its presentation had said that a one-size-fits-all formula does not suit a country's diverse states with varied development needs. So, there was a need for a customised devolution model based on socio-economic parameters and regional priorities for inclusive development, state officials said. A lower devolution of funds from the Central government has an adverse impact on the state's finances in carrying out development works and welfare activities for overall economic growth as well as welfare of its people. The state government has to borrow, which results in repayment of interest and principal debt regularly, having a negative effect on its fiscal position including quality of expenditure, officials said. Tentative projections made by the state officials showed that while the state will get Rs.5,547 crore more in 2026-27, the increase could touch Rs.9,727 crore in 2030-31 fiscal. "Assuming that the average annual growth in the divisible pool continues to be around 15% in the next five years, a higher share in central taxes could mean a windfall for the state, thus providing greater fiscal flexibility for capital and social sector spendings," an official said....