Aizawl, Feb 24 Mizoram Chief Minister Lalduhoma on Monday urged the 16th Finance Commission to provide special financial consideration for his state given its difficult terrain, frequent natural disasters like floods and landslides, water scarcity and other problems.
The Chief Minister, during a meeting with the Finance Commission led by its Chairman Arvind Panagariya, said that nearly 83.56 per cent of Mizoram’s revenue comes from tax devolution and grants-in-aid, with only about 16.77 per cent generated internally.
Lalduhoma highlighted the unique geographical and economic conditions of the state, noting that over 84 per cent of Mizoram’s land is covered by forests, making land availability a challenge. He stressed the importance of sustainable land use, conservation of forests, flora, and fauna, and the need for special financial considerations to address these challenges.
The Chief Minister pointed out that Mizoram, with its high tribal population (94.4 per cent), has a significant workforce engaged in traditional occupations.
"Despite the state's high literacy rate, it faces hurdles due to its mountainous terrain, lack of industrial opportunities, and high costs of essential goods and transportation,” he said and urged the Finance Commission to provide continued financial support to overcome these challenges and promote sustainable development.
During the meeting, the state Finance Department presented a detailed account of the state's past financial position and economic status.
The 16th Finance Commission members also deliberated on several key proposals from the Mizoram government, including support for skill development initiatives for youth, optimal utilisation of bamboo resources, and the establishment of additional nursing schools and colleges.
“Finance Commission members assured that all requests would be carefully reviewed and that Mizoram’s financial needs would be given due consideration,” a Finance Department official said.
Several Ministers, Chief Secretary Khilli Ram Meena, Finance Commissioner & Secretary Vanlaldina Fanai, Chief Secretary, various Secretaries and Directors from different departments attended the vital meeting.
The Finance Commission Chairman, accompanied by three members -- Ajay Narayan Jha, Annie George Mathew, and Manoj Panda -- and several officials arrived in Aizawl on Sunday and met Governor Gen Vijay Kumar Singh (retd) at the Raj Bhavan.
In the courtesy meeting, the Governor emphasised the importance of Mizoram's needs and various current challenges, urging the commission to acknowledge the state's financial limitations due to its low revenue collection when making recommendations to the Central government. He also highlighted the difficulties Mizoram faces in infrastructure development due to its hilly terrain compared to other regions. Further, he also mentioned the impact of conflicts in neighbouring countries, which have led to an influx of refugees and added strain on the state, an official statement said.
The Governor also stressed the need for substantial efforts to address the drug trafficking issue and enhance the law and order situation to combat it more effectively. He also underscored the need for the upgrade of the state's lone airport in the state and creation of more employment opportunities for the youth.
During its four-day visit to Mizoram, the Finance Commission team would hold a series of meetings with government officials, political parties, three Autonomous District Councils (ADCs), local bodies, trade and industry representatives, and village councils to hear their opinions and views on certain issues pertaining to the state as part of preparing its recommendations to the Centre.
An official statement said that the Commission would visit key locations including Zoram Medical College and Hospital in Falkawn, as well as Thenzawl and Serchhip, where they would visit the Handloom Centre and other important sites. Based on their assessment, they would submit recommendations to the Union government.
The 16th Finance Commission was constituted on December 31, 2023. It is responsible for reviewing and recommending the revenue-sharing model between the Central and state governments for a five-year period starting from April 1, 2026. As part of their nationwide study on state finances, the 16th Finance Commission has already visited 18 states, with Mizoram being the 19th.
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