Arunachal Pradesh Seeks Financial Boost: A Bid for Special Category Status and Equitable Tax Distribution

The Arunachal Pradesh government has petitioned for a Special Category Status and a financial package to address its exclusion from international funding projects. It advocates for increased vertical and horizontal tax devolution and central support for state-specific schemes, emphasizing its strategic location and unique developmental needs.

The Arunachal Pradesh government has made a significant plea to the 16th Finance Commission, requesting a special financial package of Rs 6.89 lakh crore. This move aims to compensate for the state's exclusion from externally assisted projects, as disclosed by Finance Commission Member Annie George Mathew in a recent press conference.

Highlighting geopolitical influences, Arunachal Pradesh Urban Affairs Minister Balo Raja briefed Union Finance Minister Nirmala Sitharaman about the state's financial aid deprivation due to alleged Chinese meddling. The government seeks to restore its Special Category Status to access more favorable funding terms for its unique challenges.

Additionally, the state has proposed increasing the vertical devolution of central taxes from 41 percent to 47 percent, advocating for a more equitable distribution. Emphasizing ecological value, it suggests boosting the 'forest and ecology' criterion's weightage while introducing a 'preservation of tribal heritage' criterion to reflect its cultural context.

(With inputs from agencies.)