Department of Information and Public Relations

Press Release No. 71/25

MEETING OF NER STATES WITH XVI FINANCE COMMISSION

A delegation of 4 Smaller NER States visited New Delhi to hold a deliberation with the Honble Chairman and the members of the 16th Finance Commission hosted by the Honble Chief Minister of Meghalaya Shri Conrad K Sangma. The delegation comprised of Shri Conrad K Sangma, Honble Chief Minister of Meghalaya, Shri P Lalduhoma, Honble Chief Minister of Mizoram, Shri Pranajit Singha Roy, Honble Finance Minister of Tripura and officials of Sikkim government. The delegation expressed its gratitude to Dr Arvind Panagariya, Honble Chairman, and the Honble members of the 16th Finance Commission for giving the smaller NER States the opportunity to articulate the challenges and regions priorities.

The Finance Commissions 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 Honble Chief Minister of Meghalaya highlighted that a 20 percent increase in the devolution share from 14th Finance Commission to 15th Finance Commission saw a 100 percent 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 regions current growth trajectory and the imperative to sustain this momentum were also emphasized by the Honble Chief Minister of Mizoram and the Honble 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 percent 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 Honble 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.