The Seventh Assam State Finance Commission has issued a stark warning that two popular welfare initiatives — the Arunoday cash-transfer scheme and expanded coverage under the National Food Security Act (NFSA) — could place severe strain on the state’s finances, its recent report says. Chaired by Lieutenant General (Retd.) R. P. Kalita, the panel praised the social intent of both programmes but cautioned that large, recurring expenditures without a clear funding blueprint risk destabilising Assam’s fiscal position.
On Arunoday, the commission details the scheme’s third phase, which aims to cover 37.2 lakh beneficiaries (about 3.72 million), each receiving Rs 1,250 per month. At that rate the state would incur roughly Rs 5,580 crore annually for Arunoday alone.
Simultaneously, the government plans to provide NFSA ration cards to about 20 lakh new beneficiaries (around 2 million). These cardholders would be eligible not only for free food grains but also for free medical services under Ayushman Bharat. The commission estimates the NFSA expansion would cost approximately Rs 5,280 crore a year — about Rs 440 crore per month.
If the two schemes are implemented together as proposed, Assam’s annual welfare bill would swell to about Rs 10,860 crore, a sum the commission describes as sizable for a state of Assam’s fiscal capacity. The report also highlights a structural revenue concern: Assam’s share of central tax devolution has fallen over successive finance commissions, from 4.12% under the Ninth Finance Commission to 3.128% under the Fifteenth. The commission notes that even a 0.1 percentage-point reduction in the state’s share translates to an annual revenue shortfall of about Rs 758 crore.
Given shrinking central transfers alongside growing welfare commitments, the Seventh Finance Commission advises the state government to exercise greater caution before expanding entitlement programmes. The panel urges the government to prepare a clear, credible financing plan and stress-tests to make the schemes fiscally sustainable and to prevent weakening the state’s overall financial health.
Original Source: https://assam.nenow.in/assam-seventh-finance-commission-warns-of-fiscal-strain-from-orunodoi-nfsa/
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Publish Date: 2026-02-18 19:11:00
