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Regular-article-logo Tuesday, 14 May 2024

Nagaland pushes finance panel for more funds

Chief Minister Neiphiu Rio pushes for full central grant for centrally-sponsored schemes (CSS) and flagship programmes

Bhadra Gogoi Dimapur Published 28.11.18, 07:58 PM
Neiphiu Rio meets officials in Kohima on Wednesday.

Neiphiu Rio meets officials in Kohima on Wednesday. Picture by Bhadra Gogoi

Nagaland chief minister Neiphiu Rio on Wednesday said the state needs funds from the Centre’s Consolidated Fund to supplement its revenues.

Holding a meeting with the 15th Finance Commission team in Kohima, Rio said the state required a lump sum amount each year for development programmes besides grants-in-aid to meet the cost of administration.

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He requested the commission to recommend full central grant for funding centrally-sponsored schemes (CSS) and flagship programmes.

The Finance Commission team, led by its chairman N.K. Singh, arrived in Nagaland on Tuesday on a three-day visit to the state.

Rio said the state’s financial position had deteriorated steadily, adversely affecting development activities. He added that the revenue deficit continued on account of 10 per cent increased tax devolution to the states from 32 per cent to 42 per cent.

The chief minister requested the commission to consider setting aside 25 per cent of the total devolution of share to the states for “special category” status as against the 11.53 per cent allocated by the 14th Finance Commission which was found to be insufficient.

“Out of the 25 per cent, 3 per cent each may be allocated to states having geopolitical implications like Nagaland,” he said.

Rio said Nagaland was struggling to provide 10 per cent state share for centrally-sponsored schemes and flagship schemes because of resource constraints and a huge backlog of state share amounting to Rs 294.05 crore.

Because of this, he said, the state cannot access the central share of 90 per cent for these schemes, which has affected the infrastructure development in the state.

He hoped that the discussions and interactions will help the commission appreciate better the reasons and circumstances that make Nagaland unique and different from other states.

The Nagaland government also requested the commission to recommend one-time grant to waive budgetary deficit and liabilities of Rs 2,864.18 crore.

In a memorandum submitted to the commission, the government said total deficit accumulated as on March 2018 was Rs 2,864.18 crore,which includes Rs 1,607.73 crore budget deficit and Rs 1,256.45 crore development deficit.

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