Finance Commission to start consultations on revenue-sharing model in Mizoram

IANS February 24, 2025 194 views

The 16th Finance Commission, led by Arvind Panagariya, has initiated critical consultations in Mizoram to understand the state's financial landscape. Governor Gen Vijay Kumar Singh highlighted the state's unique challenges, including infrastructure limitations and refugee-related pressures. The commission will engage with state officials, political parties, and local bodies to develop a comprehensive revenue-sharing model. Their recommendations will significantly impact Mizoram's fiscal framework for the next five years.

"Our state faces unique challenges due to hilly terrain and regional complexities" - Gen Vijay Kumar Singh (Retd), Mizoram Governor
Aizawl, Feb 23: The16th Finance Commission, led by its Chairman Arvind Panagariya will start formal consultations with the Mizoram government, industrial organisations, rural and urban local bodies, autonomous institutions from Monday to evolve a revenue-sharing model between the central and state governments and various other aspects, officials said here on Sunday.

Key Points

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Finance panel to review revenue model with Mizoram government

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Discussions cover infrastructure, employment, and regional development

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Four-day consultation to assess state's financial limitations

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Recommendations crucial for center-state fiscal framework

The Finance Commission Chairman, accompanied by three members -- Ajay Narayan Jha, Annie George Mathew and Manoj Panda -- along with several officials arrived in Aizawl on Sunday and then met the state 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.

The Governor 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 upliftment of the state's lone airport in the state and creation of more employment opportunities for the youth.

The Finance Commission team later visited the Hunthar Veng landslide-affected area. During a four-day visit to Mizoram, the finance commission would hold a series of meetings with the Chief Minister Lalduhoma, his cabinet colleagues, 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 government of India.

The 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.

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