New Delhi: A joint delegation of smaller Northeastern states on Monday urged the 16th Finance Commission to recommend a minimum 25% increase in their share of central tax devolution and sought the creation of a dedicated infrastructure fund to support the region’s growth.
The appeal was made during a meeting in New Delhi, hosted by Meghalaya Chief Minister Conrad K. Sangma and attended by Mizoram Chief Minister P. Lalduhoma, Tripura Finance Minister Pranajit Singha Roy, and senior officials from the Sikkim government.
The delegation met with Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, and its members to present a joint memorandum outlining the region’s fiscal challenges and development priorities.
Speaking at the meeting, Sangma emphasised the transformative impact of increased devolution under the 15th Finance Commission, which raised the share of central taxes from 42% to 50% for all states.
He noted that for the smaller NER states, this resulted in a 100% increase in capital expenditure, leading to visible improvements in healthcare, tourism, and critical infrastructure sectors.
Highlighting the importance of sustaining this momentum, Sangma strongly advocated for a further 25% hike in the devolution share to the smaller Northeastern states for the upcoming five-year period.
He also proposed the establishment of a special infrastructure fund to address the region’s unique developmental needs.
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His proposal received unanimous backing from the other members of the delegation, with Mizoram’s chief minister and Tripura’s Finance Minister echoing the need for increased fiscal support to maintain the region’s growth trajectory.
The 16th Finance Commission members acknowledged the strides made by the region and assured the delegation that their concerns would be seriously considered.
They also appreciated the economic progress achieved by the smaller NER states in recent years despite limited resources.
