The 16th Finance Commission has proposed that Mizoram consider a shared operational model for Lengpui Airport, akin to several other airports across the country that function in coordination with the Indian Air Force (IAF). This proposal to transfer the state’s lone airport to the IAF has sparked controversy, with the Opposition Mizo National Front (MNF) and various civil society groups opposing the government’s alleged move.
Speaking to the press on Monday, Finance Commission Chairman Arvind Panagariya emphasized bamboo as Mizoram’s most significant economic asset and urged the state to harness its full potential. Highlighting the high demand for bamboo-based products across India, he called on the state government to expand production to meet market requirements.
Panagariya also announced that the Finance Commission would incorporate provisions for disaster relief in Mizoram, addressing frequent challenges such as earthquakes, floods, and heavy rainfall.
During the meeting, Mizoram Chief Minister Lalduhoma highlighted the state’s financial constraints, noting that nearly 83.56% of its revenue comes from tax devolution and grants-in-aid, while only 16.77% is generated internally. Given the state’s difficult terrain, recurring natural disasters, and limited land availability—over 84% of which is covered by forests—he urged the Finance Commission to grant special financial consideration.
Lalduhoma also pointed out that despite Mizoram’s high literacy rate, development remains constrained by its mountainous landscape, scarce industrial opportunities, and the high costs of essential goods and transportation. Furthermore, the predominantly tribal population is engaged in traditional occupations, making economic diversification challenging. The Chief Minister stressed the need for sustainable land use policies and continued financial support to overcome these hurdles and drive economic growth.
The 16th Finance Commission, established on December 31, 2023, under Article 280 of the Indian Constitution, has already conducted reviews in 18 states across India. Its recommendations will be instrumental in shaping fiscal policies for states facing geographical and economic constraints, such as Mizoram.
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