Assam urges 16th Finance Commission for tax devolution reform

Chairman of the 16th Finance Commission Arvind Panagariya on Thursday said Assam Chief Minister Himanta Biswa Sarma expressed concern over the "steady decline of tax devolution" for the state and sought arrest of the trend.Panagariya and other members of the panel held a meeting with Sarma, his cabinet colleagues and top government officials in Guwahati earlier in the day. "The CM expressed concern that since the 13th FC, Assam has seen its share of devolution declining steadily. He said it's connected to lower taxes on petroleum products and liquor in neighbouring states," Panagariya said at a press conference.
in the meeting, Sarma urged the Commission to increase Assam's inter-se share within the framework of horizontal devolution and to consider treating the North-East as a collective block by allocating 10% of central funds to the 8 states.The region's unique challenges demand tailored solutions, and bridging regional disparities is the only path forward for Bharat, he said. 
The chief minister also highlighted to the Commission the unique challenges and costs faced by Assam, such as its diverse geography, the impact of climate change, multiple international borders, and the looming threat of demographic shifts.Despite these challenges, we have managed to achieve higher capital expenditure and demonstrated strong performance across critical sectors including health, education, drinking water, infrastructure, local governance, disaster mitigation, and power, Sarma said.