Meghalaya CM advocates for 25% increase in devolution share for smaller NE states

Syllad | The Rising MeghalayaJuly 7, 2025

Meghalaya Chief Minister Conrad K Sangma has strongly urged the 16th Finance  Commission to recommend at least a 25% increase in the devolution share for the smaller North Eastern States.

Sangma was part of the delegation of four smaller NE states, which visited New Delhi and hold a deliberation with the Chairman and the members of the 16th Finance Commission. 

The delegation also comprised of P Lalduhoma, Chief Minister of Mizoram, Pranajit Singha Roy, Finance Minister of Tripura and officials of Sikkim government. 

The delegation expressed its gratitude to Dr Arvind Panagariya, Chairman, and the members of the 16th Finance Commission for giving the smaller NER States 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 the economic advancement of the States, particularly for the smaller NER States, which face resource constraints. 

Meghalaya Chief Minister highlighted that a 20% increase in the devolution share from 14th Finance Commission to 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 various sectors. 

The region’s current growth trajectory and the imperative to sustain this momentum were also emphasized by the Chief Minister of Mizoram and the Hon’ble Finance Minister of Tripura. 

During the discussion, the Meghalaya Chief Minister strongly advocated for the 16th Finance Commission to recommend at least a 25% 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 Chairman and members of the 16th Finance Commission responded positively, acknowledging both the unique challenges and the notable economic progress achieved by the smaller NE states during the current commission period.

A Joint Memorandum outlining the shared concerns and aspirations of the smaller NE 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.