Dimapur, July 30 (MExN): Nagaland’s financial woes are caused by mismanagement and diversion of funds on the part of the State Government and the Central Government cannot be blamed if the state is misusing funds, NPCC President K Therie said on Saturday.
“It is not that the Finance Commission (FC) has failed to assess the need,” Therie said in a press release, adding that there is ‘serious misunderstanding’ in the minds of the people in regard to funding of the State.
According to Therie, funding of the State is through the Constitution of India and under Article 280, the Finance Commission is constituted by the President of India.
He explained that the net proceeds of taxes are divided between the Centre and States or Union Territories on the recommendations of the FC. In the present situation, 42% of the total net proceeds are transferred to the states and UTs. These funds are released on the 1st day of every month to the States from Nagpur and nobody can stop the flow of funds awarded by the FC, Therie maintained. The FC makes recommendations to the President on the measures needed to augment a state’s resources to supplement the panchayats and municipalities on the basis of the recommendations of the FC of the State. Article 275 assures special provisions for Tribal developments, he said.
In addition to normal FC awards, NE States are given funds from North East Council and States also have shares from Every Central Development Department and no department can deprive a state’s due shares, Therie maintained.
This is how regional governments and non-NDA governments are surviving and they are doing even better, he added.
In the case of Nagaland, he said that the State has taken huge loans and debt servicing which is deducted at source and “is eating up huge non-plan resources.”
Therie alleged that loans are misused and have failed to generate resources.
“Our resources continue to be stagnant at around 650-700 crore annually. Special non-plan and plan assistance of Rs 365 crore was given to Nagaland during Vajpayee’s time to make good deficits and pay liabilities to over 70 departments. Rs 736 crore non-plan and Rs 326 crore plan assistance were given during Dr Manmohan Singh’s time to meet 6th ROP deficits,” he said.
However, during Prime Minister Narendra Modi’s time, “we have not heard of any additional funds being given. Maybe if given, it may have been looted. Even the state’s share of GST was not released on time,” he alleged.
Therie further stated that delay of salary payments are caused by ‘mismanagement’ and not because the FC has failed to assess the need. Similarly, delay of payments to contractors is caused by diversion of funds, and “We cannot blame the Central Government if the state is misusing,” he added.
“There is no reason to be a slave of the Centre. We are the 16th Federal State in the Union of India and not beggars,” he stated.
