Smaller NE States Push For Bigger Share In 16th Finance Commission’s Pie

A delegation of four Smaller States from the Northeast Region (NER) visited New Delhi to hold a deliberation with the Chairman and the members of the 16th Finance Commission, hosted by the Chief Minister of Meghalaya Conrad K. Sangma. 

The delegation comprised of Conrad K. Sangma, Chief Minister of Meghalaya, P Lalduhoma, Chief Minister of Mizoram, Pranajit Singha Roy, Finance Minister of Tripura and officials of the Sikkim government. The delegation expressed its gratitude to Dr Arvind Panagariya, Hon’ble Chairman, and the Hon’ble members of the 16th Finance Commission for giving the smaller NER States the opportunity to articulate the challenges and the region’s priorities.

The Finance Commission’s recommendations on the share of central taxes allocated to States for a five-year period are pivotal for the economic advancement of the States, particularly for the smaller NER States, which face resource constraints. The Chief Minister of Meghalaya highlighted that a 20% increase in the devolution share from the 14th Finance Commission to the 15th Finance Commission saw a 100% increase in capital expenditure of the States. This enhanced fiscal space enabled marked improvements in health indicators, growth in the tourism sector and critical infrastructure development across various sectors. 

The region’s current growth trajectory and the imperative to sustain this momentum were also emphasised by the Chief Minister of Mizoram and the Finance Minister of Tripura.

During the discussion, the Chief Minister of Meghalaya strongly advocated for the 16th Finance Commission to recommend at least a 25% increase in the devolution share for the smaller NER States over the 15th Finance Commission period and a special infrastructure fund for the States. This collective demand received unanimous support from all States represented at the meeting. The Chairman and members of the 16th Finance Commission responded positively, acknowledging both the unique challenges and the notable economic progress achieved by the smaller NER States during the current commission period.

A Joint Memorandum outlining the shared concerns and aspirations of the smaller NER States was formally submitted to the 16th Finance Commission. The event, coordinated by the Finance Department of Meghalaya, concluded on an optimistic note, with all participants expressing hope for positive outcomes that
will further the development of the smaller NER States.

Meanwhile, Tripura Finance Minister Pranajit Singha Roy put forth a strong appeal for substantial financial assistance to overcome the state’s infrastructural deficits and ensure holistic growth.

Highlighting the specific needs of the Tripura Tribal Areas Autonomous District Council (TTAADC), Minister Roy underscored the urgent requirement for infrastructure development in the region. He urged the Finance Commission to consider a special grant for the overall advancement of the ADC areas.

The Minister raised concerns about the state’s ongoing infrastructural limitations, particularly the disruption in road and rail connectivity during the monsoon, and called for additional financial allocations to mitigate these challenges.

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