Assam CM Dr. Himanta Biswa Sarma Meets Chairman of 16th Finance Commission to Discuss Devolution of Funds
During the meeting, Chief Minister Sarma highlighted several critical challenges faced by Assam, emphasizing that the state’s geography............
NEW DELHI– In a crucial step towards securing Assam’s financial future, Chief Minister Dr. Himanta Biswa Sarma met with Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, on Wednesday to discuss issues related to the devolution of funds to Assam. The meeting, held at the Bhawan Annexe on Tolstoy Marg, New Delhi, lasted for 40 minutes and focused on the unique challenges faced by the state and how tailored solutions are needed to address these challenges in the context of fund distribution.
Unique Challenges of Assam
During the meeting, Chief Minister Sarma highlighted several critical challenges faced by Assam, emphasizing that the state’s geography, climate change impact, proximity to international borders, and demographic shifts all demand special consideration in terms of fund allocation.
“Assam’s unique challenges demand tailored solutions, especially when it comes to addressing the regional disparities that exist within the state,” said the Chief Minister. He added that these challenges must be recognized in the broader context of India’s development, aligning with the vision of a Vikshit Bharat (Developed India).
Assam’s Performance Despite Challenges
Dr. Sarma pointed out that despite these challenges, Assam has managed to achieve remarkable progress in several critical sectors. These include health, education, drinking water, infrastructure, local governance, disaster mitigation, and power.
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The Chief Minister expressed his confidence that the state could contribute to the nation’s economic growth, particularly as India aims to become the third-largest economy in the world. He also spoke about the government’s commitment to ensuring that Assam plays a leading role in this transformation, stressing the importance of cooperative federalism in addressing both vertical and horizontal fiscal challenges.
Call for Greater Devolution of Funds
In previous discussions, Dr. Sarma had made a strong case for increasing Assam’s share of funds under the horizontal devolution framework. This was reiterated in the meeting, where he proposed that the Northeast region, comprising eight states, be considered as a collective block for fund allocation. He recommended that at least 10% of Central tax revenues be earmarked for the region, given its unique challenges and potential.
Dr. Sarma’s proposal is in line with his previous remarks made during the visit of the 16th Finance Commission members to Assam in September 2024. At that time, he had urged the Commission to allocate greater funds to the region to help realize Prime Minister Narendra Modi’s vision of transforming the Northeast into a growth engine for India.
Key Officials in Attendance
The meeting was attended by several key officials, including:
- Principal Secretary to the Chief Minister, Dr. KK Dwivedi
- Commissioner and Secretary, Finance Department, Government of Assam, Jayant Narlikar
- Other senior officials from the Assam Government
Chief Minister’s Social Media Update
Following the meeting, Chief Minister Dr. Sarma took to X (formerly Twitter) to share insights from his discussion with Dr. Panagariya:
“It is always insightful to meet Shri @APanagariya Ji, the Chairman of the 16th Finance Commission. We discussed aspects unique to Assam with regards to the devolution of funds.”
Finance Commission’s Timeline
The 16th Finance Commission, which was constituted on December 31, 2023, under the chairmanship of Dr. Arvind Panagariya, is tasked with submitting its final recommendations by October 31, 2025. The recommendations will apply to the award period of five years, starting April 1, 2026.
This Commission’s recommendations are expected to play a crucial role in shaping India’s fiscal policy and ensuring that states like Assam receive adequate funds to address their unique development needs.
