GUWAHATI : The start of Prime Minister Narendra Modi’s third term in office has brought a significant financial boost for the Northeastern states through the release of tax devolution installments. Assam, being the largest state in the region, received the highest allocation of Rs 4,371.38 crore from the Finance Ministry’s announcement of releasing Rs 1,39,750 crore as part of the tax devolution for states across the country. 

Arunachal Pradesh secured the second-highest amount in the Northeast, with Rs 2,455.44 crore, reflecting the region’s development needs. Meghalaya emerged as the third-highest recipient among the Northeastern states, granted Rs 1,071.90 crore, surpassing even the tourism-sought-after state of Sikkim, which received Rs 542.22 crore.

The other states in the region also received substantial funds, with Manipur receiving Rs 1,000.60 crore, Tripura Rs 989.44 crore, Nagaland Rs 795.20 crore, and Mizoram Rs 698.78 crore.

This substantial release of funds from the tax devolution is expected to enable state governments to accelerate development and capital spending, addressing regional infrastructure and development needs effectively.

 On a national scale, Uttar Pradesh received the highest allocation of Rs 25,069.88 crore, followed by Bihar with Rs 14,056.12 crore and Madhya Pradesh with Rs 10,970.44 crore.

The Interim Budget 2024-25 had a provision of Rs 12,19,783 crore towards the devolution of taxes to states. With this release, the total amount devolved to states for the fiscal year 2024-25 has reached Rs 2,79,500 crore as of June 10, 2024.

Assam Chief Minister Himanta Biswa Sarma on June 11 highlighted the significant progress made in the state’s start-up ecosystem over the last three years, driven by his government’s support and initiatives.

In a tweet, Sarma revealed that a total of 489 startups have received comprehensive support from the state government during this period. Furthering its commitment to fostering entrepreneurship, the government has provided a grant of Rs 7 crore to 74 startups, enabling them to scale their operations and realise their innovative ideas.

Moreover, startups incubated at Assam Startup-The Nest, a dedicated startup incubator, have collectively raised an impressive Rs 100 crore in external funding, reflecting the potential and viability of these ventures.

The chief minister also highlighted the substantial revenue generated by startups in the state, amounting to Rs 40 crore. Sarma further revealed that these startups have created a remarkable 4,900 employment opportunities, contributing to the state’s overall economic development and providing a platform for skilled professionals.

The Assam government’s proactive approach towards nurturing startups has garnered praise from various quarters, with stakeholders lauding the initiatives undertaken to encourage entrepreneurship and innovation within the state.