Arunachal Pradesh receives Rs 1,476 crore under centre’s tax devolution

Arunachal Pradesh was allocated Rs 1,476 crore by the Union government under the regular tax-devolution mechanism, a move announced on Friday by Deputy Chief Minister and Finance Minister Chowna Mein. The transfer forms part of a total disbursement of Rs 1.09 lakh crore to all states, intended to fund development projects, infrastructure creation and welfare programmes across the country.

Central tax-devolution release

The Union Finance Ministry released Rs 1,09,019 crore to every state on Thursday, moving the scheduled monthly instalment forward by five days from its usual date of November 10. The ministry said the advance release would help states accelerate capital expenditure and meet development and welfare-related spending requirements, especially during the festive season. This release is part of the regular tax-devolution process that channels a share of central taxes to state governments.

State officials’ response

Chowna Mein used a social-media post to thank Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the financial assistance. He stated that the funds would give Arunachal Pradesh greater financial flexibility to prioritise development commitments, sustain growth and strengthen welfare delivery. The deputy chief minister highlighted that the additional resources would be directed toward ongoing and new development initiatives, including infrastructure projects and welfare schemes.

Allocation across the Northeast

Among the eight northeastern states, Assam received the highest share of the central release, amounting to Rs 3,552 crore. Arunachal Pradesh followed with the Rs 1,476 crore allocation. The other states received the following amounts: Tripura Rs 699 crore, Meghalaya Rs 688 crore, Manipur Rs 682 crore, Mizoram Rs 615 crore, Nagaland Rs 524 crore and Sikkim Rs 365 crore. The Finance Ministry’s statement indicated that these figures would enable each state to accelerate capital-intensive programmes and meet their development and welfare-related spending needs.

Finance Commission recommendation and future outlook

The 16th Finance Commission had recommended that the states’ share of the divisible pool of central taxes remain at 41 percent for the period 2026-27 to 2030-31. The Union government accepted this recommendation, ensuring that the proportion of tax revenue allocated to states stays unchanged for the next five fiscal years. By retaining the 41 percent share, the central government aims to provide a stable revenue base for states like Arunachal Pradesh to plan and implement long-term development projects.

The advance release and the specific allocation to Arunachal Pradesh are expected to enhance the state’s capacity to undertake infrastructure construction, fund welfare programmes and sustain overall economic growth during the upcoming fiscal period.