Guwahati: Arunachal Pradesh Deputy Chief Minister Chowna Mein has sought a special economic package for the state, citing its challenging terrain, high transportation costs, shorter working seasons and limited access to externally aided funds.
Mein made the demand while participating in the inaugural day of a two-day conference on “Financing India’s Journey Towards a Viksit Bharat” organised by the Ministry of Finance at Bharat Mandapam in New Delhi on Saturday. Union Finance Minister Nirmala Sitharaman and Union Minister of State for Finance Pankaj Chaudhary were also present at the conference.
The event brought together finance ministers from states and Union Territories, economists, academicians and senior officials to discuss issues related to economic development, agricultural transformation, energy transition, technology-driven resource utilisation and fiscal strategies.
Speaking during a session on the macroeconomic outlook, Mein highlighted Arunachal Pradesh’s unique geographical and economic challenges. He noted that while the state has a smaller economy compared with several developed states, it is the largest state in the Northeast by geographical area.
Mein called for a separate provision for Arunachal Pradesh through a special economic package, citing the state’s relatively high cost index. He attributed the higher costs to its difficult terrain, prolonged monsoon periods, expensive transportation and increased operational expenses associated with projects in remote and hilly areas.
He also pointed to the absence of externally aided funds as another challenge affecting the state’s development financing.
Despite these constraints, Mein said Arunachal Pradesh had maintained fiscal discipline in accordance with the Fiscal Responsibility and Budget Management (FRBM) Act. He said the state’s fiscal deficit had remained within the prescribed limits and that there had been no defaults in meeting salaries, pensions, other committed liabilities or debt-related obligations.
The Deputy Chief Minister further highlighted Arunachal Pradesh’s high level of capital expenditure, saying the state was making significant investments in infrastructure, connectivity, power, healthcare, education and social-sector programmes.
According to Mein, these investments had helped expand economic activity and generated multiplier effects across different sectors of the state’s economy.
The two-day conference is aimed at developing strategies to strengthen the financial position of states and Union Territories and improve fiscal management as part of efforts towards building a stronger and more self-reliant economy.