Arunachal Pradesh Sets Path for Fiscal Reforms Amid Challenges

Arunachal Pradesh Chief Minister Pema Khandu calls for governance reforms to offset reduced central tax devolution, targeting MSME investment and structural changes. Facing a potential Rs 40,000 crore deficit in five years, Khandu emphasizes fiscal stability through local enterprise growth and infrastructure development.

In a bid to stabilize Arunachal Pradesh's fiscal landscape, Chief Minister Pema Khandu has called for accelerated governance reforms. With the 16th Finance Commission's recommendations potentially cutting central tax devolution, Khandu projects an annual Rs 4,000 crore shortfall, summoning a need for strategic financial planning.

Emphasizing MSME growth, Khandu urged local entrepreneurs to invest, exploring opportunities in tourism and agriculture. He announced special sessions and district camps aimed at boosting entrepreneurship and financial support. The CM praised fiscal strides, noting the state's top ranking in NITI Aayog's Fiscal Health Index.

Khandu attributed development to state-Centre cooperation, highlighting substantial infrastructure progress, including expanded road networks and national highways. Initiatives like 'Sarkar Aapke Dwar' have enhanced government-public interaction. Overall, the government seeks to transform young job seekers into providers, strengthening Arunachal's economic base.

(With inputs from agencies.)