‘20% increase in devolution of share witnessed 100% increase in capital expenditure’
Shillong, July 7: Chief minister Conrad K Sangma has strongly advocated the need for the Centre to raise the devolution share for smaller North Eastern states by at least 25% over the 15th Finance Commission period and a special infrastructure fund for these states.
Sangma urged the 16th Finance Commission to make the recommendation accordingly during a meeting between Commission chairman Dr Arvind Panagariya and representatives of four smaller NE states in New Delhi recently.

Making his point for increase in devolution share, Sangma mentioned that an increase by 20% increase in devolution share from 14th Finance Commission to 15th Finance Commission saw a 100% increase in capital expenditure of the states.
The collective demand received unanimous support from all the NE representatives – Mizoram chief minister P Lalduhoma, Tripura finance minister Pranajit Singha Roy, and senior Sikkim government officials – in the meeting.

The Finance Commission’s recommendations on the share of central taxes allocated to states for a five-year period are pivotal for economic advancement of the states, particularly the resource-strained smaller NE states.
Sangma, meanwhile, pointed out that enhanced fiscal space in 15th Finance Commission 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 emphasized by chief minister of Mizoram and finance minister of Tripura.

Commission chairman and members positively responded to the demand raised by the Meghalaya chief minister, acknowledging both the unique challenges and the notable economic progress achieved by the smaller NE states during the current commission period.
Meanwhile, the representatives of four states submitted a joint memorandum to the 16th Finance Commission outlining their shared concerns and aspirations.