New Delhi [India], February 11 (ANI): Union Finance Minister Nirmala Sitharaman on Wednesday assured that 41% of the divisible pool of taxes is being devolved to the states and said that no state’s share has been reduced.
“We have transferred 41% of the divisible pool to the states. No state’s share has been reduced,” she said while replying to the debate in the Lok Sabha on the Union Budget 2026–27.
“In the coming year, the states’ share is estimated at Rs 25.44 lakh crore, which will be devolved to them—an increase of Rs 2.7 lakh crore from last year,” she added.
Citing the 16th Finance Commission, Sitharaman said it had analyzed the devolution of funds from 2018 to 2023 and concluded that the Centre’s transfers to the states during each of those years exactly matched the Commission’s recommendations.
“The 16th Finance Commission analyzed the states’ share transferred by the Centre from 2018 to 2023 and concluded that in each of these years, the devolution made by the Centre exactly matches the recommendation of the Finance Commission,” she said.
The Finance Minister also noted that, on the recommendation of state finance ministers, capital expenditure loans for 50 years have been increased to Rs 2 lakh crore under the Special Assistance to States for Capital Investment scheme.
“While the Centre’s capex stands at Rs 12 lakh crore, in effect, with states and Union Territories, it rises to Rs 17.1 lakh crore,” she said.
The Government of India had launched the Special Assistance to States for Capital Investment scheme, under which financial assistance is provided to state governments in the form of 50-year interest-free loans for capital investment projects.
Sitharaman said the Centre is willing to work with states to develop mega textile parks, particularly in industrial textiles, which she described as “new age” and increasingly integral to the manufacturing sector.
“These new-age textile requirements, including industrial textiles used in products such as car cushions, can also be fulfilled. I welcome any state that wants to enter this area. The Centre is willing to collaborate with them,” she said.
Highlighting credit growth, the Finance Minister said there is no shortage of lending to industry, including small and medium enterprises.
“Total credit expanded by 13.8% in the current financial year. As of January 15, 2026, non-food bank credit grew 13%, while NBFC credit rose 15.4%,” she said.
On employment generation, Sitharaman said five Regional Medical Hubs will be developed to promote medical tourism, which is expected to generate one lakh jobs over the next five years.
She also announced that five large Textile-to-Leather Parks will be established, creating significant new employment opportunities.
Additionally, a comprehensive care ecosystem for senior citizens is being developed, under which 1.5 lakh caregivers will be trained this year.
The Lok Sabha took up discussion on the Union Budget on Tuesday. Sitharaman is expected to reply to the debate in the Rajya Sabha on Thursday. (ANI)
About The Author
