Ranchi: Jharkhand is set to receive ₹51,236 crore as its share of central taxes for the financial year 2026–27. Bihar, on the other hand, will get ₹1,51,831 crore, which is ₹13,316 crore more than its allocation in the previous fiscal year.
Breakdown of Jharkhand’s Share
According to the budget documents, Jharkhand’s share of central taxes includes:
- Corporation Tax: ₹15,040 crore
- Income Tax: ₹18,233 crore
- Central GST: ₹14,013 crore
- Customs Duty: ₹2,733 crore
- Central Excise: ₹1,164 crore
- Other Taxes: ₹51 crore
Following the announcement, Jharkhand Finance Minister Radhakrishna Kishore expressed dissatisfaction, alleging that the state has been overlooked in the budget.
Bihar Receives Higher Allocation
Bihar’s allocation for 2026–27 shows a year-on-year increase. In the current fiscal year, Bihar’s share was ₹1,38,515 crore, which will rise to ₹1,51,831 crore in 2026–27, reflecting an increase of ₹13,316 crore.
Year-on-Year Growth in Central Tax Allocations
Economist Dr. Sudhanshu Kumar explained that states receive a share of central taxes as recommended by the Finance Commission. With consistent growth in central tax collections, the share allocated to states has also increased steadily over the years. He noted Bihar’s allocations over the past five years:
- 2021–22: ₹86,942 crore
- 2022–23: ₹97,767.28 crore
- 2023–24: ₹1,14,289 crore
- 2024–25: ₹1,28,151.10 crore
- 2025–26: ₹1,38,515 crore
Demand for Share in Cesses and Surcharges
Ahead of the budget, Bihar Finance Minister Bijendra Prasad Yadav had requested that states be given a share in cesses and surcharges as well. He pointed out that the share of cesses and surcharges has risen from 10.4% in 2011–12 to 13.6% now. Since these revenues are not part of the divisible pool, states like Bihar miss out on their constitutional share. However, the 2026–27 budget did not include cesses and surcharges in the divisible pool.
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