Arunachal Seeks Rs 6.89L Cr Special Package from 16th Finance Commission

ITANAGAR: The Arunachal Pradesh government has submitted a formal request to the 16th Finance Commission for a special financial package of Rs 6.89 lakh crore, citing the state’s exclusion from externally aided projects (EAPs) funded by international agencies—an exclusion the state attributes to geopolitical interference from China.

The demand was made during a high-level interaction between the Finance Commission and Chief Minister Pema Khandu, along with Deputy Chief Minister Chowna Mein, in Itanagar.

Finance Commission member Annie George Mathew, speaking at a press conference on April 8 during the commission’s five-day consultation visit to the state, underscored the seriousness of the issues raised by the Arunachal leadership.

The state’s ineligibility for EAPs, despite its developmental needs and strategic border location, has posed a major roadblock to critical infrastructure and social sector investments.

Mathew, accompanied by fellow commission members Dr. Manoj Panda and Dr. Soumya Kanti Ghosh, further disclosed that the Arunachal Pradesh government has also sought the restoration of special category status for northeastern and Himalayan states. The restoration, officials believe, would ensure better access to central assistance and reflect the state’s unique topographical, ecological, and infrastructural challenges.

In addition, the state has proposed a revision in the vertical devolution of central taxes to states—from the current 41 percent, as recommended by the 15th Finance Commission, to 47 percent. This increase, Arunachal argues, is necessary for a fairer, need-based allocation of central funds.

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