Sitharaman Roars in Parliament: States Have No Share in Cess-Surcharge

• Finance Minister Nirmala Sitharaman clarified in Parliament that states have no share in cess and surcharge, stating they are levied constitutionally for specific purposes.
• She emphasized that states should focus on the net share from the divisible pool, not gross tax revenue, dismissing 'confusion' about cess and surcharge.
• Sitharaman highlighted the government's focus on capital expenditure, with an effective capital expenditure of Rs 17.1 lakh crore (4.4% of GDP) for infrastructure development.
• A record Rs 25.44 lakh crore in resources will be transferred to states in 2026-27, and the 50-year interest-free loan scheme for states has been increased to Rs 2 lakh crore.
• She also noted declining Gross Fixed Capital Formation in states like Kerala, Tamil Nadu, and West Bengal, alleging communist-ruled states haven't attracted industrial investment.