Mizoram’s three Autonomous District Councils (ADCs) have warned that mounting salary liabilities and limited funds for development are placing their functioning under severe financial strain, with the councils collectively facing a ₹159.59-crore salary shortfall.
The Chief Executive Members (CEMs) of the Mara, Lai and Chakma Autonomous District Councils appealed coming to Aizawl, urging the Mizoram government and Governor to intervene and address what they described as long-standing financial and administrative problems affecting the councils.
According to figures released by the councils, the salary deficit stands at ₹25.88 crore for the Mara ADC, ₹69.93 crore for the Lai ADC and ₹63.78 crore for the Chakma ADC.
The CEMs said the immediate financial pressure is linked to successive pay revisions, increases in dearness allowance (DA), annual increments, promotions and regularisation of employees. Non-salary allocations have not increased at the same pace. As a result, they said, more than 90% of the ADCs’ budgets are now being spent on salaries, leaving little room for development and other expenditure.
The councils’ statement said the imbalance has become particularly acute under the present funding arrangement. Until 2023-24, funds were provided separately under salary and non-salary heads, while from 2024-25 the allocation has been made under Grant-in-Aid (General).
The CEMs said that during the first State Finance Commission period, additional salary requirements were met through Revised Estimates (RE), but that this did not continue consistently during the second State Finance Commission period, covering 2021-22 to 2025-26.
Concerns extend beyond salaries
The three ADCs said the financial crisis is also linked to what they described as overlapping or “dual administration” in their areas.
Under the Sixth Schedule framework, the councils said they were entrusted with 20 departments by the Mizoram government in 1993 under Paragraph 6(2).
However, they alleged that although departments such as Agriculture, Veterinary, PWD and Fisheries were entrusted to the ADCs, the state government continues to operate these departments and implement development schemes within ADC areas.
The councils said this has resulted in a situation where ADCs have responsibility for officers and staff but do not have corresponding control over development works and schemes.
They also pointed to the Gupta Commission report, which was published in the Mizoram Gazette on September 1, 2011, after receiving the Governor’s approval. According to the ADCs, the report recommended that departments entrusted to the councils, along with development works and schemes, be fully transferred to the ADCs. They said the recommendation has not been fully implemented.
The three councils argue that the issue is not simply one of funding but also concerns the constitutional autonomy and functions of the ADCs.
They cited former Chief Justice of India M. Hidayatullah’s description of the Sixth Schedule as a special constitutional arrangement and argued that ADCs should not be treated merely as another department of the state government.
Claim of funding disparity
The ADCs further said their areas account for around 16% of Mizoram’s population according to the 2011 Census, but receive only around 4% of state funding, a disparity they said needs to be addressed.
They also highlighted the changing structure of funding to the councils. From 2014-15, funds were provided under Plan and Non-Plan heads; from 2015-16 to 2023-24, allocations were divided into salary and non-salary components; and from 2024-25, funding has been provided under Grant-in-Aid (General).
The councils said that in 2023-24, salary allocations accounted for approximately 92–96% of their funding, while non-salary allocations were only around 3–7%.
The councils’ concerns come amid wider debate over employee expenditure in the three ADCs.
Mizoram Chief Minister Lalduhoma had said in August that the councils spent an average of 97.14% of their annual allocations on employee salaries, with the Lai ADC spending 100% of its allocation on salaries, according to a report by The Times of India. The government has also said it plans to introduce common recruitment rules for the councils.
CEMs seek government action
The three CEMs said they came to Aizawl to formally submit their concerns to Chief Minister Lalduhoma and Governor Vijay Kumar Singh, seeking measures to resolve the financial difficulties and ensure that the councils receive what they consider their rightful powers and funding.
They said they hoped the state government would take action to address the salary shortfall and other issues affecting the councils.
The CEMs also said the three councils would continue to work together, without political differences, to protect the autonomy guaranteed to them under the Constitution and to secure what they described as their legitimate rights.
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