Our Correspondent
Kohima | February 13
Chief Minister Neiphiu Rio today said that the coming financial year 2020-21 is important for the state because it marks the commencement of the Fifteenth Finance Commission Award period.
Rio, who also holds finance portfolio in his budget presentation, said that the tenure of the Fifteenth Finance Commission has been extended by another year upto October 2020 and so, the submission of the final report of the Commission has been delayed.
The Commission has, however, submitted its report for the year 2020-21. The Commission will be submitting a separate report for five (5) years for the period 2021-22 to 2025-26 by October 2020. “We are accordingly proceeding with a full budget,” he said.
Rio recalled that two members of the Fifteenth Finance Commission-Dr. Ashok Lahiri and Ajay Narayan Ma, had recently visited Nagaland from January 8-10.
“We had meaningful discussions with them and have conveyed to them the problems we face, such as the remote location of the state and the increase in financial problems after the pattern of financing contained in the 16 Point Agreement was discontinued,” Rio said adding that he told them the need for support in completing the Trans Nagaland Highway (Foothill Road) and for Ciethu Airport.
Planning Minister also mentioned the pressing need for funds to maintain the capital assets being created under various programs, and the problems the state faces due to the discontinuation of SPA funding, which has left the state with a financial liability of Rs. 529 crore.
Rio said that the government also explained to them the historical reasons for the high number of government employees and the resulting high salary expenditure.
He said the ratio of government employees to the population is among the highest in the North East and perhaps even in the country.
“The problems we face in implementing central schemes due to poor communication network and limited banking facilities were also explained. We also informed them of the problems caused by the non-release of grants to Urban Local Bodies due to the inability to hold Municipal elections. Although representatives have not been elected, the ULBs are functioning normally headed by Administrators, and are providing basic services and amenities to the public. Accordingly, we have requested the Commission to provide funds to enhance their functioning and capacities.
Rio said that the PDA government also requested the Commission to give due consideration in covering our revenue deficit and recommending state specific grants to ensure that there is a minimum level of development in the state.
“This was felt necessary because the Fourteenth Finance Commission had not recommended State Specific Grants citing the increased devolution to States by 10% from 32% to 42%. But this increased devolution did not benefit our State since we continue to remain revenue deficit even after the awards. As a result, we were unable to set aside adequate resources to take up developmental activities,” Rio said.
Rio said that the government has requested the Commission to recommend State Specific Grants for infrastructure projects.
Stating that the Commission has also been kind enough to permit submission of additional memorandum in case the state desire, he said “This will be a good opportunity for us, and the required details are being prepared for submission.”
The two members have also advised the state to give more focus to the agri and allied sector, he said.
