New Delhi [India], February 1 (ANI): The Indian government has allocated Rs 1.4 lakh crore for states in the financial year 2026-27 as Finance Commission grants, Union Finance Minister Nirmala Sitharaman announced on Sunday.
Presenting the Union Budget 2026-27, Sitharaman said the government has accepted the 16th Finance Commission’s recommendation to retain the vertical share of devolution at 41 percent.
“The government has accepted the 16th Finance Commission recommendations to retain the vertical share of devolution at 41 percent. I have allocated Rs 1.4 lakh crore for states for FY 2026-27 as Finance Commission grants. These include rural and urban local body and disaster management grants,” she said.
The 15th Finance Commission had recommended a 41 percent share of central taxes for states, and the 16th Finance Commission has maintained this vertical share. In December 2025, the Centre released over Rs 723 crore to Rajasthan and Jharkhand for grants to rural bodies under the 15th Finance Commission to strengthen village-level institutions.
In Rajasthan, Rs 303.04 crore was released as the first installment for FY 2025-26, benefiting 24 district panchayats, 339 block panchayats, and 3,857 gram panchayats.
In addition, Sitharaman proposed a Coconut Promotion Scheme aimed at increasing production and improving productivity to boost India’s competitiveness in coconut cultivation. The scheme will focus on major coconut-growing states and include measures such as replacing non-productive trees with high-yielding saplings.
“To further enhance competitiveness in coconut production, I propose a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings or plants of improved varieties in major coconut-growing states,” she said.
Sitharaman presented the Union Budget for the record ninth time. (ANI)
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