16th Finance Commission visits Mizoram to discuss 5-year financial allocation
According to state finance department official Mizoram has high expectations from the 16th FC, as the state's economy has been significantly impacted by the Covid-19 pandemic.;
16th Finance Commission (FC), led by Chairman Dr. Arvind Panagariya, landed in Mizoram on Sunday.
Aizawl, Feb 24: A delegation from the 16th Finance Commission (FC), led by Chairman Dr. Arvind Panagariya, arrived here on Sunday for a three-day visit to Mizoram. The visit aims to deliberate on financial allocations for the state for the upcoming five-year period, beginning in the 2026 fiscal year, officials said.
En route from Lengpui Airport to the state capital, the commission members inspected the Hunthar sinking area on Aizawl's western outskirts. The site, experiencing land subsidence since 1990, covers 24.3 hectares. Public Works Department (PWD) and Disaster Management and Rehabilitation Department officials briefed the FC on the severity of the issue, highlighting the disruption to National Highway 306, a crucial route connecting Aizawl to western and to Delhi on Tuesday, while northern Mizoram.
During their visit, the commission members will meet Chief Minister Lalduhoma and senior government officials on Monday. They will also hold discussions with political party representatives, autonomous district council members, and local bodies.
Dr. Panagariya will return to Delhi on Tuesday, while other FC members and officials will conduct further field visits. They will inspect facilities at Zoram Medical College & Hospital in Falkawn, south of Aizawl, before travelling to Thenzawl town in Serchhip district.
On Wednesday, they will proceed to Serchhip town and then return to Delhi from Lengpui Airport by helicopter.
A state finance department official stated that Mizoram has high expectations from the 16th FC, as the state's economy has been significantly impacted by the Covid-19 pandemic. This crisis has led to a decline in central funding and state revenue, resulting in a financial shortfall. A memorandum detailing the State's financial needs has been prepared for submission to the FC, the official added.
Under the 15th Finance Commission's recommendations, Mizoram received Rs 6,544 crore as a Post Devolution Revenue Deficit Grant (PDRDG) during the 2021-26 period.
The total allocation, including grants for local bodies, disaster management, and the health sector, amounted to Rs 7,631 crore. This included Rs 713 crore for local bodies, Rs 259 crore for disaster management, and Rs 115 crore for health sector grants through local governments. However, Mizoram's PDRDG allocation has seen a sharp decline, from Rs 1,790 crore in 2021-22 to a projected Rs 586 crore in 2025-26. This downward trend has exacerbated the State's financial constraints, placing an additional fiscal burden on the State.
By
Correspondent
