The annual financial statement popularly known as the Budget for the year 2009-10 was presented by the Chief Minister and subsequently passed by the Nagaland Legislative Assembly. Firstly, on the revenue side, it is not unusual to see that the State continues to depend overwhelmingly on Central assistance. It is therefore somewhat surprising and at the same time contradictory that the latest budget is devoid of any fresh taxes. The government machinery would have to get itself into a combat mode to generate commensurate revenue because unless revenue collection improves, the State finances would be hard pressed to sustain its expenses. The Chief Minister as the head of the government should strictly monitor the revenue generating departments and ensure that there is no leakage or fund diversion. On the expenditure side of the budget as well, it is equally distressing to observe the major chunk of money going away to support Non-Plan Expenditure. Populist measures and unnecessary wasteful expenditure must be cut. The truth of the matter is that we living beyond our means. And what is worrying is that we are a consumer State. We only know how to spend. This trend has to be reversed. The State government will have to start planning a long term road map to alter the strenuous nature of resource equations.
As far as the Opposition Congress is concerned, one of their main criticisms is on the rationale behind the government spending precious taxpayer’s money for the various “road show-variants” of policies. Bringing out an official statement in this regard, the Nagaland Pradesh Congress Committee ‘exposed’ this as the “disorientation in the policies of the present government”. While the Congress as the main opposition party has every right to criticize any policy decision of the government, only time will tell as to whether the series of road show is indeed wastage of public money or the initiative from the Chief Minister actually serves public interest. So as far as the road show goes, the Congress will have to live with it after all any policy initiative is the discretion of the political executive. However the Congress has done well to raise the larger problem of the unhealthy financial position of the State. Indeed it is a matter of concern that a major portion of the State budget could end up servicing our debts. Hopefully the NPF led State government will also remain cautious and take corrective measures so that the State does not fall into a debt trap.
Cost cutting measures wherever possible should be taken. The Chief Minister should also ensure that there is equitable distribution of resources and also take serious note of the scams and fund misuse as highlighted by the Opposition Congress. At the end what is expected of the government is that funds are utilized properly keeping in mind the growth and welfare objective. The other area deserving attention is to correct the decades of lopsided development that the State has experienced. The Development Commissioner of the State has also raised this point during a recent visit to Mon. A balanced growth is necessary for the harmonious development of all regions. The money coming into development programmes will have to be properly accounted and activities closely monitored. And this could be the reason by the Chief Minister has decided to undertake the State wide road shows. Good governance, fiscal discipline and strengthening delivery system will remain the key for holistic development to take place while keeping the State’s financial condition healthy.
