Amid ongoing deliberations with the 16th Finance Commission, the Government of Jharkhand has placed a formal request seeking Rs 3.03 lakh crore in financial assistance over the next five years.

In a memorandum submitted during a high-level meeting held in Ranchi, state Finance Minister Radha Krishna Kishore outlined the government’s comprehensive development agenda, calling for a special package to address pressing needs in infrastructure, healthcare, education, and rural livelihoods.

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The submission, made in the presence of Commission Chairman Arvind Panagariya and his team, has been described by officials as not merely an appeal for funds, but a demand for fiscal justice. Minister Sudivya Kumar, addressing reporters after the meeting, confirmed that the state government’s memorandum included sector-specific justifications, notably emphasising backwardness, underinvestment, and the unique structural challenges faced by the state. He added that as a productive state contributing significantly to national energy security through coal mining, Jharkhand suffers a paradoxical disadvantage under the current tax and revenue-sharing framework.

The memorandum paints a picture of persistent inequality in a state rich in resources yet poor in outcomes. Jharkhand ranks 26th among Indian states in terms of per capita income, despite its wealth of minerals and forests. Approximately 70 to 80 per cent of the population depends on agriculture, yet irrigation infrastructure covers only 24.25 lakh hectares out of the nearly 30 lakh hectares of cultivable land. Furthermore, over two-thirds of the state’s terrain suffers from land degradation and erosion, making it especially vulnerable to recurrent droughts and low farm productivity.

The document also highlights serious deficits in social development. According to NFHS-5 data, 65 per cent of women between the ages of 15 and 49 are anemic, and 40 per cent of children under five suffer from malnutrition. Higher education enrolment remains far below the national average, and access to healthcare remains critically low in rural and tribal areas.

State officials noted that the burden of lifting such indicators cannot be borne by the state government alone and that central assistance is not just desirable but necessary to realise constitutional goals of equity.

On the security front, the state acknowledged that although Maoist insurgency has been significantly contained in recent years, the threat is not yet over. Around 200 police camps remain operational in sensitive districts, and state officials cautioned against the premature withdrawal of security forces. The government has requested special central support for 19 affected districts under the Security Related Expenditure (SRE) scheme to ensure sustained development and stability in the region.

A major point of contention presented to the Commission was the issue of long-pending financial dues. The state claims that coal companies operating in Jharkhand owe the government Rs 1.36 lakh crore in unpaid dues. In addition, Rs 1,300 crore under MGNREGA, Rs 5,235 crore under Jal Jeevan Mission, and Rs 78 crore under central pension schemes remain outstanding. A cumulative shortfall of Rs 25,436 crore in Finance Commission grants between 2019 and 2025 was also raised. The state has further urged the resumption of GST compensation, which was discontinued in July 2022, leading to a projected revenue loss of Rs 61,677 crore over the next five years.

Despite these constraints, the state has maintained what it called sound fiscal discipline. The fiscal deficit currently stands at 2.27 per cent, well within the 3 per cent limit prescribed by the Fiscal Responsibility and Budget Management (FRBM) Act. Gross State Domestic Product(GSDP) is projected to grow by 9.8 per cent in the upcoming financial year. The government argued that such performance, especially in a challenging economic terrain, warrants greater central support rather than incremental allocations.

Among the key demands placed before the Finance Commission were an increase in the state’s share of central taxes from 41 to 55 per cent, the inclusion of open forest areas in the devolution formula, and improved transparency in CSR funding and bank credit deployment. Officials said the focus of the appeal was not on seeking alms but on asserting the state’s rightful due under India’s federal framework.

The Finance Minister concluded his remarks with a pointed reminder that fiscal relations must reflect not only revenue generation but also development needs. “The Constitution gives states their rights, but governance must fulfil its promises. We are ready to move forward—but the Centre must recognise that federalism is not just a principle; it is a partnership.”

As the 16th Finance Commission weighs the submissions from across India, Jharkhand’s detailed and data-backed appeal stands as a timely reminder that national growth must rise from the grassroots—and for states like Jharkhand, that growth depends not on potential alone, but on partnership.