Consider treating the North-East as a collective block by allocating 10% of central funds to the eight states: Assam CM to 16th Finance Commission

Guwahati: Assam chief minister Himanta Biswa Sarma urged the 16th Finance Commission to increase Assam's inter-se share within the framework of horizontal devolution and to consider treating the North-East as a collective block by allocating 10% of central funds to the eight states.

Sarma attended a meeting of the 16th Finance Commission. The Commission's four-day visit to Assam, began on Wednesday. They met with Sarma in his office to discuss a wide array of financial matters crucial to Assam’s future.

A crucial meeting took place between the seven-member Finance Commission team, led by Chairman Dr. Arvind Panagariya, and Assam’s Cabinet Ministers, the Chief Secretary, and senior officials from various departments, focussing on the state's financial roadmap.


The Finance Department laid out an extensive presentation, showcasing the state's remarkable strides in key sectors like power, industry, Jal Jeevan, disaster management, housing and urban planning, water resources, capital investment, water transportation etc.

The CM underscored how Assam has experienced a substantial uplift in its law and order situation, a critical factor that has attracted increasing investments into the state.

He highlighted the significant rise in Assam’s GDP and per capita income, stating that Assam is poised to shift from being a dependent state to becoming a vital contributor to India’s economic engine.

Sarma stated in X, “I had a good interaction with members of the 16th Finance Commission and its distinguished Chairman Shri
@APanagariya
Ji. It is our endeavour to ensure Assam emerges a net contributor in India’s quest to become the third largest economy. To achieve this, we made insightful submissions that can help strengthen Cooperative Federalism, address vertical & horizontal challenges and strike a fine balance between Equity and Efficiency”.

He added, “I also highlighted to the Commission the unique challenges and costs faced by Assam, such as its diverse geography, the impact of climate change, multiple international borders, and the looming threat of demographic shifts. Despite these challenges, we have managed to achieve higher capital expenditure and demonstrated strong performance across critical sectors including health, education, drinking water, infrastructure, local governance, disaster mitigation, and power”.

Sarma said “To realise Hon’ble Prime Minister Shri @narendramodi Ji’s vision of making the North East a growth engine, greater fund devolution is critical. In today’s meeting, I urged the Commission to increase Assam's inter-se share within the framework of horizontal devolution and to consider treating the North-East as a collective block by allocating 10% of central funds to the 8 states. The region's unique challenges demand tailored solutions, and bridging regional disparities is the only path forward for Bharat. I am confident that the 16th Finance Commission will take our circumstances into favourable consideration”.