Arunachal stability in fiscal landscape is set as Deputy Chief Minister Chowna Mein announced on February 2, 2026, that the Union Budget will maintain a 41% vertical devolution of central taxes to states. This decision aligns with the recommendations of the 15th and 16th Finance Commissions, ensuring predictability in state finances.
Chowna Mein emphasized the Centre’s commitment to fiscal federalism and cooperative governance, stating that the devolution provides states with assured resources to plan and execute development programs effectively. Under the 2025–26 budget estimates, Arunachal Pradesh was allocated ₹24,992.35 crore with a horizontal share of 1.757%.
However, the revised estimates for 2025–26 show a slight adjustment to ₹24,474.51 crore. Looking ahead to the 2026–27 budget, Arunachal is set to receive ₹20,665.48 crore, reflecting a revised horizontal share of 1.354% as per the 16th Finance Commission’s updated criteria.
The state’s unique geographical challenges and strategic importance, including its vast terrain and international borders, were considered in previous allocations. The Union Budget 2026–27 also includes substantial provisions, with ₹1.4 lakh crore in Finance Commission grants aimed at strengthening local governance and disaster management.
Mein reiterated the state government’s dedication to prudent fiscal management and resource utilization, aiming to collaborate closely with the Centre to advance Arunachal Pradesh’s development priorities sustainably.
Published in SouthAsianDesk, February 3rd, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
