Haryana CM Saini Proposes New Criteria for Fund Allocation at 16th Finance Commission Meeting

Chandigarh, April 28, 2025 – Haryana Chief Minister Nayab Singh Saini put forth key suggestions during the 16th Finance Commission meeting today, emphasizing the need for a fresh approach to resource distribution to better serve states contributing significantly to the nation’s growth.

Highlighting the strategic role of the National Capital Region (NCR) in India’s journey toward becoming a developed nation by 2047, CM Saini proposed introducing a new parameter that accounts for the percentage of a state’s area falling within the NCR when allocating funds. He also suggested another innovative criterion: rewarding states with a high percentage of population serving in the armed forces with a greater share of central taxes, recognizing their contribution to national security.

The meeting witnessed detailed discussions on financial devolution, resource allocation, and state-specific grants. Commission Chairman Dr. Arvind Panagariya lauded Haryana’s exceptional economic performance, noting that despite its small geographical size, Haryana boasts the second-highest per capita income among major states.

Dr. Panagariya also praised the state’s proactive submission of its ‘Vision Document @2047’ aligned with the national Viksit Bharat mission.

CM Saini argued that states like Haryana, which extend Centrally Sponsored Schemes (CSS) benefits beyond their mandated scope, should receive special state-specific grants. He cited several examples:

Under the Chirayu Ayushman Yojana, Haryana expanded healthcare coverage to 32 lakh additional families beyond the nine lakh covered under the central Ayushman Bharat scheme.

Similarly, through the Har Ghar-Har Grihini Yojana, subsidized LPG cylinders are provided to 15 lakh additional families, supplementing the central Ujjwala Yojana.

Haryana has also introduced an extra subsidy of ₹25,000 per kilowatt under the PM Suryaghar Yojana for promoting solar energy installations.


Calling Haryana a “pivotal engine” of India’s economy, CM Saini said the “Triple Engine Government” model is rooted in inspirational governance, innovation, inclusive development, and social welfare.

He further suggested that states ensuring the procurement of all 24 notified crops at Minimum Support Price (MSP), as Haryana does, should receive a State-Specific Grant.

On strengthening grassroots democracy, he highlighted that Haryana grants 50% reservation to women in local bodies—higher than many other states—and urged the Commission to incorporate such initiatives into the norms for grants for local bodies between 2026-31.

Concluding his remarks, CM Saini said, “Though Haryana is small in geographical size, its contribution to the nation is immense. Today, I speak not just as Chief Minister but as the voice of every Haryanvi, seeking an equitable share for our state.”

Members of the 16th Finance Commission, including Annie George, Ajay Narayan Jha, Dr. Manoj Panda, and Dr. Soumya Kanti Ghosh, along with senior Haryana officials, attended the meeting.