Lok Sabha Question No. 1566 (UNSTARRED), answered on 2026-02-09
Subject: Financial Assistance to Mizoram
Ministry: FINANCE
Asked by: Shri Richard Vanlalhmangaiha

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION NO. 1566 TO BE ANSWERED ON MONDAY, 09 th  February, 2026 20 MAGHA, 1947 (SAKA)

## FINANCIAL ASSISTANCE TO MIZORAM

## 1566. SHRI RICHARD VANLALHMANGAIHA :

Will the Minister of FINANCE be pleased to state:

- (a) whether the Union Government has assessed the current financial condition of the State of Mizoram, particularly in view of its geographical constraints, limited revenue base and increasing developmental expenditure;
- (b) if so, the details thereof;
- (c) whether  the  Union  Government  proposes  to  provide  any  additional  financial assistance, special grants or relaxation in fiscal norms to the State of Mizoram; and
- (d) if so, the details thereof along with the time-frame for its implementation?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  &  (b)  Assessment  of  financial  condition  of  States  including  own  revenue,  expenditure requirement  and financial needs is done by the Finance Commission every five years. The Commission also recommends the quantum of devolution of central taxes & duties and grants to  be  made  to  States  and  the  inter-se  share  of  States  in  the  devolution.  Based  on  the recommendations of the Finance Commission, the Union Government has increased the tax devolution  to  States  from  32%  in  the  13 th Finance  Commission  period  to  42%  in  the  14 th Finance  Commission  period.  The  15 th Finance  Commission  also  maintained  same  level  of devolution  after  adjusting  1%  for  Jammu  and  Kashmir.  Further,  some  States  including Mizoram  were  also  provided  Revenue  Deficit  Grant  to  bridge  the  gap  between  State's expenditure and revenue.

(c) & (d) All States including Mizoram have enacted their Fiscal Responsibility and Budget Management (FRBM) Act which makes the State Government responsible to ensure prudence in  fiscal  management  and  fiscal  stability  by  progressive  elimination  of  revenue  deficit, reduction in fiscal deficit, prudent debt management consistent with fiscal sustainability and greater transparency in fiscal operations of the government. Compliance to the State FRBM Act is monitored by the respective State Legislatures. Department of Expenditure, Ministry of Finance, usually considers the fiscal limits as per the accepted recommendations of the Finance Commission while exercising powers to approve borrowings by States under Article 293(3) of the Constitution of India.

Besides the Finance Commission recommended grants & grants under the Centrally Sponsored Schemes,  the  Union  Government  is  also  providing  funds  to  States  under  the  Schemes  for Special Assistance to States for Capital Expenditure/Investment (SASCI). An amount of Rs. 3,243.35  crore  has  been  released  to  Mizoram  under  SASCI  from  2020-21  to  2025-26  till 29.01.2026. Moreover, Additional Central Assistance (ACA) for Externally Aided Projects (EAPs) is provided to Mizoram as 90% grant and only 10% as loan.

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