By Our Reporter
SHILLONG, July 7: Chief Minister Conrad K Sangma on Monday urged the 16th Finance Commission to recommend at least a 25% increase in the devolution share for the smaller states of the Northeast over the 15th Finance Commission period and a special infrastructure fund for them.
He made this plea during a meeting of a delegation of four smaller states of the region with Dr Arvind Panagariya, Chairman of 16th Finance Commission, and its members.
Apart from Sangma, Mizoram Chief Minister Lalduhoma, Tripura Finance Minister Pranajit Singha Roy and officials of the Sikkim government attended the meeting.
Sangma highlighted that a 20% increase in the devolution share from the 14th 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 sectors.
The region’s current growth trajectory and the imperative to sustain this momentum were also emphasised by the Mizoram Chief Minister and the Tripura Finance Minister.
This collective demand received unanimous support from the four states. The Chairman and the members of the 16th Finance Commission responded positively, acknowledging both the unique challenges and the notable economic progress achieved by these smaller states.
The Northeast delegation expressed its gratitude to Dr Panagariya and his colleagues for giving the smaller states of the Northeast the opportunity to articulate the challenges and 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 their economic advancement, particularly for the smaller states of the Northeast which face resource constraints.
A joint memorandum by the four states, outlining shared concerns and aspirations, was 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 these smaller states.
