The government has accepted the 16th Finance Commission’s recommendation to retain the vertical share of devolution at 41 percent. ₹1.4 lakh crore is to be given to States as Finance Commission Grants for FY 2026-27. The Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman, stated that the grants include Rural and Urban Local Body and Disaster Management Grants. The Commission submitted its report to the President on November 17th 2025 and the Government is to lay the report along with the explanatory memorandum on the action taken report on the recommendations of the Commission in Parliament as mandated under Article 281 of the Constitution. The press release ID is 2221390, and the visitor panel is 2023. This release is available in Tamil, Urdu, Hindi, Marathi, Bengali, Assamese, Punjabi, Gujarati, Odia, Telugu, Kannada, and Malayalam. This information was released on 01 FEB 2026 12:40PM by PIB Delhi.
Key Entities Referenced
16th Finance Commission: The entity that recommended retaining the vertical share of devolution at 41 percent.
Ministry of Finance: The ministry that issued the press release.
Article 281 of the Constitution: The constitutional article mandating the report to be laid in Parliament.
Ministry of Finance
GOVERNMENT ACCEPTS 16TH FINANCE
COMMISSION’S RECOMMENDATION TO
RETAIN VERTICAL SHARE OF DEVOLUTION AT
41 PERCENT
₹1.4 lakh cr. to BE GIVEN TO States as Finance Commission
Grants for FY 2026-27
प्रव तथ: 01 FEB 2026 12:40PM by PIB Delhi
The Government has accepted the recommendation of the 16th Finance Commission to retain the vertical
share of devolution at 41 percent.
Presenting the Union Budget 2026-27 in Parliament today, Union Minister of Finance & Corporate
Affairs, Smt. Nirmala Sitharaman said, “The Government has accepted the recommendation of the
Commission to retain the vertical share of devolution at 41 percent. As recommended by the Commission,
I have provided ₹1.4 lakh crore to the States for the FY 2026-27 as Finance Commission Grants. These
include Rural and Urban Local Body and Disaster Management Grants.”
She further said that the Commission submitted its report to the President on 17th November 2025 and the
Government is to lay the report along with the explanatory memorandum on the action taken report on the
recommendations of the Commission in Parliament as mandated under Article 281 of the Constitution.
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NB /ISA
(रलीज़ आईडी: 2221390) आगंतुक पटल : 2023
इस वज्ञ को इन भाषाओ ंम पढ़: Tamil , Urdu , ही , Marathi , Bengali , Assamese , Punjabi , Gujarati , Odia , Telugu , Kannada , Mal
ayalam