Mein reiterates state’s commitment to fiscal prudence

ITANAGAR, 21 Dec: Deputy Chief Minister Chowna Mein reiterated the state government’s commitment to fiscal prudence at the pre-budget consultative meeting chaired by union Finance Minister Nirmala Sitharaman in Jaisalmer, Rajasthan, on Friday.

During the meeting, which provided a platform for states to present their priorities, Mein, who is also in charge of finance, highlighted Arunachal’s unique position as a critical border state, emphasising the need for enhanced infrastructure and connectivity to bridge gaps in accessibility and economic opportunities.

He reiterated the state’s commitment to fiscal prudence under the Arunachal Pradesh Fiscal Responsibility and Budget Management Act, 2006 to ensure on-time payment of salaries, pensions, and loans without default. He also brought attention to the financial challenges posed by the state’s challenging terrain, where

 the cost of development is 2.5 times higher compared to other regions.

To address this disparity, Mein suggested factoring in a “cost disability index” while allocating resources to states.

Mein further underscored the importance of externally aided projects from organisations like the World Bank, the ADB, and the JICA, which the state has been unable to access. He requested alternative funding mechanisms to harness the benefits of both financial assistance and technical expertise. He also highlighted the urgent need for replacing the state’s dilapidated semi-permanent structures from the NEFA era with robust RCC buildings, proposing a special financial package for the same.

Expressing gratitude for the union government’s consistent support, Mein commended initiatives like the Special Assistance to States for Capital Investment (SASCI), which has enabled Arunachal to expedite crucial infrastructure projects. He also requested for enhanced allocation under SASCI (Part-I) to further accelerate the development process.

He concluded by emphasising that Arunachal, as a carbon sink state, “looks forward to incentivization mechanisms for its role in environmental sustainability.”

“Collaborative efforts between the union and state governments are crucial for Arunachal Pradesh to overcome its challenges, realise its potential, and contribute to national progress,” Mein said.

Mein was accompanied by Finance Commissioner YW Ringu. (DCM’s PR Cell)