In a significant economic development, Arunachal Pradesh has witnessed a remarkable surge in its Goods and Services Tax (GST) revenue for the current financial year, officials announced on Monday. The state's collections have grown at a pace that dramatically outshines the national average, signaling robust economic health and improved fiscal management.
Staggering Growth Figures Outpace National Trend
Data reveals that Arunachal Pradesh recorded a sharp 35.7 per cent rise in GST collections during the first nine months of the 2025-26 financial year, compared to the same period last year. This performance is particularly notable as it exceeds the national growth average of 6.8 per cent by a wide margin.
In absolute terms, the state collected Rs 1,519 crore between April and December 2025. This marks a substantial increase from the Rs 1,324 crore gathered in the corresponding period of 2024, resulting in an absolute gain of Rs 195 crore for the state exchequer.
Key Drivers Behind the Revenue Surge
According to the central GST Commissionerate in Itanagar, this impressive jump is not accidental. Officials attribute the success to a combination of steady economic performance, better compliance by taxpayers, and effective revenue-boosting measures implemented by the state administration.
The higher collections are a direct indicator of expanding business activity and growing markets across Arunachal Pradesh. Major sectors contributing to this growth include retail, services, tourism, transport, and hospitality, all of which have shown increased vibrancy. Improved tax administration and monitoring systems have also played a crucial role in capturing this economic uptick.
Policy Reforms and Digitalisation Widen Tax Base
Authorities credit specific policy initiatives for creating a conducive environment. Measures focused on ease of doing business, governance reforms, and increased digitalisation have collectively helped in widening the state's tax base. These steps have not only simplified processes for existing businesses but have also boosted investor confidence, attracting more commercial ventures to the region.
The resultant rise in revenue has strengthened the state's financial position considerably. This fiscal empowerment allows the government to allocate higher spending on critical areas like infrastructure, healthcare, education, and social welfare programs, fostering more inclusive development.
Sustaining the Momentum for Long-Term Development
Recognizing the need to maintain this positive trajectory, officials outlined ongoing and future steps. The strategy includes deeper tax digitisation, closer engagement with the business community, improved revenue tracking systems, and enhanced training for both taxpayers and tax officials.
These concerted efforts are expected to support continued economic growth and ensure long-term, inclusive development across Arunachal Pradesh. The state's GST story is emerging as a model of how improved compliance and proactive policy can transform a region's economic landscape.
