Assam’s Share in Central Taxes Falls to 3.128%, Finance Panel Flags Revenue Stress

Assam’s share in the divisible pool of Central taxes has steadily declined over successive Finance Commissions, dropping from 4.12% to 3.128%, according to the Report of the Seventh Assam State Finance Commission (2026–31).

The report notes that Assam’s share has fallen from 4.12% in the IX Finance Commission to 3.128% in the XV Finance Commission (Second Report, 2021–26). The decline has significantly impacted fund flows from the Centre in the form of Central tax devolution.

The Commission observes that even a marginal 0.1% reduction in the State’s share results in an estimated revenue sacrifice of about Rs 758 crore. The shrinking percentage share, despite expansion of the divisible pool over the years, has tightened Assam’s fiscal space.

Table 4.6 of the report outlines the trajectory: while the divisible pool percentage increased from 29.5% during the XI Finance Commission to 41% under the XV Finance Commission, Assam’s relative share within that pool declined.

The Commission has urged the forthcoming XVI Finance Commission to revisit criteria and weightage formulas to better support marginalised and geographically challenged states like Assam.

The report also highlights concerns over fiscal sustainability, pointing out pressures from growing public debt and limited growth in capital expenditure. It stresses the need for strengthening the State’s own revenue base to offset the declining central share.

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