Gujarat CM Patel calls for recognition of fiscal discipline in meeting with 16th Finance Commission

Gandhinagar (Gujarat) [India], October 21 : Gujarat Chief Minister Bhupendra Patel in the 16th meeting with the Finance Commission expressed a clear opinion that states like Gujarat which maintain fiscal prudent discipline should get rewards for this by the commission.
Chief Minister Patel said that this will not only give recognition to the responsible financial management and disciplined spending of such states but will also inspire other states to do the same.
Members of India's 16th Finance Commission arrived in Gujarat on Sunday and met Chief Minister Bhupendra Patel and other state government officials in Gandhinagar on Monday.
According to an official release, Chief Minister Bhupendra Patel provided suggestions in his meeting with the 16th Finance Commission. Chief Minister Patel said States maintaining fiscal prudent discipline should be rewarded by the Commission.
He said Gujarat has distinct needs and realities of tribal communities in rural areas with rapid urbanization and needs to keep these realities at the center of funding.
CM Patel suggestion also included that the Finance Commission should contribute to financially strengthening states that are progressing well, including Gujarat.
The Chairman of the 16th Finance Commission Dr Arvind Pangarhia praised the economic progress of Gujarat and said that the state's average growth rate is 8.5 percent against the country's average real GDP growth rate of 6 per cent in the last ten years.
Pangarhia said that Gujarat is gearing up to become India's first South Korea, Taiwan with its development strategy as a manufacturing state and that the state has maintained consistent growth during the tough times of COVID-19.
The 16th Finance Commission report covering the five years commencing from 1 April 2026 is to be made available on 31 October 2025. In this regard, the 16th Finance Commission is visiting Gujarat to conduct detailed discussions with the concerned states by visiting states before finalizing the report.
Chief Minister Bhupendra Patel presented in this meeting the influential role of Gujarat's preparedness in realizing the vision of Developed India 2047 given by Prime Minister Narendra Modi. The Chief Minister expressed expectation of adequate resources and support from the Central Government to achieve the ambitious goals for this.
He suggested to the Commission that the Finance Commission should pay more attention to performance indicators showing efficiency and outcomes for this purpose. Chief Minister Bhupendra Patel drew the attention of the Finance Commission to another important initiative and said that the special situation in Gujarat also needs to be taken into account by the commission in allocating funding.

In this context, he said that on the one hand urbanization is increasing rapidly in Gujarat, on the other hand, tribal communities living in rural areas also have their own different needs and requirements. He clearly said that only with the proper support and support of the Finance Commission, Gujarat will be able to make an effective contribution to the development of the country by paying attention to such requirements.

The Chief Minister emphasized that the benefits given to Gujarat by the Finance Commission should be based on these realities and should be in sync with the ambitions and requirements of the state.

The Chief Minister said that under the leadership of Prime Minister Narendra Modi, Gujarat has made extraordinary development in the last two decades. Gujarat, which contributed more than 6 percent to the country's GDP in 2001, today contributes more than 8.5 percent under the guidance of PM Modi.
The Chief Minister appreciated the invaluable contribution of the Finance Commission in the development of the nation and the states. The role of the Finance Commission was considered as a cornerstone in strengthening cooperative federalism. The Chief Minister requested the Finance Commission in its recommendations to support and guide the states that are making good progress financially, including Gujarat.
16th Finance Commission Chairman Arvind Pangarhia while appreciating the economic progress of Gujarat, Arvind Pangarhia said that in the last ten years, when the real GDP growth rate of the entire country has been 6 percent, Gujarat's real GDP growth rate is 8.5 percent.
Appreciating Gujarat's development strategy as a manufacturing state, Pangarhia added that Gujarat is poised to become India's first South Korea, Taiwan. He also praised the Surat Economic Region model and DISCOM in the presentation made by the Gujarat government and called it a role model for others.
Finance Minister Kanubhai Desai said that the Finance Commission should recognize the states based on performance in areas like National Goals i.e. Renewable Energy, Climate Change, and Sustainability. An elaborate presentation by the Gujarat Government before the 16th Finance Commission was presented by Natarajan, Principal Secretary, Finance Department.
The members of the commission expressed their views on the presentation made by the state government. Chief Minister's Adviser SS Additional Chief Secretaries, Principal Secretaries, and Secretaries of various departments including Rathore participated in this meeting.