Photo Courtesy: ukhrultimes
Gangtok: The Union Government has unveiled a new financial initiative titled 'Pride of Hills,' earmarking Rs 25,000 crore to bolster capital expenditure across nine geographically and fiscally disadvantaged hill states. Introduced as Part-X of the Special Assistance to States for Capital Investment (SASCI) programme for 2026-27, the scheme aims to address the structural economic weaknesses often found in these regions, such as thin tax bases, high debt-to-GSDP ratios, and significant reliance on central transfers.
Of the total budget, Rs 17,620 crore has been directed toward seven states in Northeast India, representing more than two-thirds of the overall funding. Among the beneficiaries, Arunachal Pradesh received the largest individual share at Rs 4,900 crore, followed by Nagaland with Rs 3,880 crore and Tripura with Rs 3,450 crore. Manipur, Meghalaya, Sikkim, and Mizoram have also been allocated funds of Rs 2,400 crore, Rs 2,070 crore, Rs 820 crore, and Rs 100 crore, respectively. The remaining Rs 7,380 crore of the national corpus is shared between Himachal Pradesh and Uttarakhand.
State leadership has welcomed the move, noting that these funds are provided over and above existing SASCI entitlements. Arunachal Pradesh Chief Minister Pema Khandu expressed his appreciation to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, emphasizing that the capital infusion will be vital for improving fiscal stability and fostering the development of revenue-generating assets. By prioritizing regions with historically limited industrial activity and challenging connectivity, the initiative marks a significant effort to bridge the economic gap between India’s hill states and the rest of the nation.
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