Chief Ministers and representatives from the Northeastern states have recently engaged in discussions with the 16th Finance Commission, highlighting the unique challenges and financial needs of the region. These meetings underscore the importance of the Commission's recommendations, which will determine the distribution of central tax revenues to the states for the upcoming five-year period. The recommendations are expected to be submitted by October 31, 2025, and will be implemented from April 1, 2026.
Several key issues were brought to the forefront during these discussions. Mizoram's Chief Minister Lalduhoma advocated for an increased share of tax devolution to the states, emphasizing that it is the most significant source of state finance. He also highlighted the challenges faced by Mizoram due to its small population, which often results in reduced central funds. Lalduhoma appealed for the inclusion of specific hardships faced by Mizoram, such as landslides, heavy rains, cloudbursts, and forest fires, in the disaster risk index. He also requested special consideration to cover the high cost of transportation due to the state's hilly terrain and connectivity challenges. Furthermore, he advocated for enhanced financial support for autonomous District Councils and the continuation of grants to rural local bodies.
Other states echoed similar concerns. Meghalaya Chief Minister Conrad Sangma, Tripura Finance Minister Pranajit Singha Roy, and other officials from various Northeastern states also attended the meeting and jointly submitted a memorandum to the 16th Finance Commission, outlining their shared demands and concerns. Nagaland Chief Minister Neiphiu Rio met with the Commission, reiterating the need for development funds to address the state's financial challenges and support infrastructure and economic growth. Assam Chief Minister Himanta Biswa Sarma also met with the Chairman of the 16th Finance Commission, discussing issues related to the devolution of funds to Assam, emphasizing the state's unique challenges such as its geography, climate change impact, proximity to international borders, and demographic shifts.
A common thread throughout these discussions was the need for increased financial support from the central government. The Northeastern states are seeking a significant increase in their share of federal tax revenues, with some states demanding at least a 25% increase compared to the 15th Finance Commission period. They argue that enhanced funding is crucial for sustaining the region's economic momentum and addressing its unique geographical and developmental challenges. The states also requested a dedicated infrastructure fund to help bridge the infrastructure gap in the region.
The 16th Finance Commission has acknowledged the socio-economic and geographical conditions of the Northeastern states and has assured that these factors will be considered while making recommendations. The Commission aims to strike a balance between equity and efficiency, addressing vertical and horizontal challenges in fund allocation. The recommendations of the 16th Finance Commission are highly anticipated, as they will play a crucial role in shaping the fiscal landscape of the Northeastern states for the next five years. The outcomes will determine the pace of infrastructure development, public service delivery, and overall economic growth in a region that has often faced resource constraints.
