Kerala looks to 16th Finance Commission to address fiscal challenges

The 16th Finance Commission is expected to address growing fiscal imbalances between India's Union and state governments. Currently, states receive only 30-32% of gross tax revenue, despite recommendations for higher shares. Kerala faces challenges, including reduced tax shares and revenue losses from clean energy policies. The state is also dealing with liquidity stress due to borrowing restrictions and needs resources for disaster resilience. The 16th Commission's focus on Article 280 aims to improve resource distribution and grants for states. Its recommendations are seen as vital for addressing fiscal issues in Indian federalism.