Assam CM urges finance panel to prioritize Assam’s unique needs in next fund allocation cycle

Syllad | The Rising MeghalayaJuly 2, 2025

Assam Chief Minister Himanta Biswa Sarma met with Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, in New Delhi on Wednesday to advocate for increased central funding to Assam, highlighting the state’s distinct developmental challenges and strategic position in the Northeast.

In the 40-minute meeting at Bhawan Annexe, 1 Tolstoy Marg, Sarma outlined Assam’s specific concerns — including difficult terrain, climate vulnerability, cross-border proximity, and ongoing demographic shifts — that demand a differentiated approach in fund devolution.

He argued that these structural challenges call for tailored fiscal support from the Centre. “Bridging regional disparities is essential to realizing a Vikshit Bharat,” Sarma said, stressing that equitable resource distribution is key to national progress.

Despite these challenges, the Chief Minister noted Assam’s robust performance in key sectors like health, education, infrastructure, governance, power, and disaster preparedness — achievements made possible through sustained capital expenditure under the current administration.

Reiterating Assam’s long-term economic vision, Sarma said the state is determined to become a net contributor to India’s economy. He also presented a set of strategic recommendations aimed at promoting cooperative federalism and correcting vertical and horizontal imbalances in fund distribution.

Top state officials, including KK Dwivedi (Principal Secretary to the Chief Minister) and Jayant Narlikar (Commissioner and Secretary, Finance Department), were present during the meeting.

Sarma later shared on X (formerly Twitter): “It is always insightful to meet @APanagariya Ji, the Chairman of the 16th Finance Commission. We discussed aspects unique to Assam with regards to devolution of funds.”

This was Sarma’s second major engagement with the Commission. In September last year, during their Assam visit, he had called for an increase in the state’s horizontal share and proposed a dedicated 10% allocation of Central tax revenues to the Northeast as a unified bloc — reinforcing the region’s role in national development.

The 16th Finance Commission, chaired by Dr. Panagariya and constituted on December 31, 2023, is scheduled to submit its recommendations by October 31, 2025. The recommendations will cover the five-year award period beginning April 1, 2026.