DIMAPUR, FEBRUARY 22 (MExN): A team of officers from the State Finance Department attended the first consultative Workshop for North East and Himalayan Region States organized by the Fifteenth Finance Commission at New Delhi on February 22.
The delegation apprised the commission on financial problems faced by the state and sought measures to tackle these issues. The team from Nagaland comprised of Y Kikheto Sema, IAS, Secretary (Finance & Budget); Kekhwezo Kepfo, Joint Secretary (FRC) and Ketoulhou Metha, Dy. Secretary (Budget).
It was attended by Arvind Mehta, IAS, Secretary, Fifteenth Finance Commission, who directed all the states present to prepare a Memorandum which will highlight genuine and credible estimates supported by accurate data and requirements on a need base; without making abnormal demands.
While the 15th Finance Commission will come into effect from 2020-21, preparatory works have already begun and the members of the commission will be visiting the State for on-the-spot understanding of the problems within this calendar year.
Addressing the meeting, Y Kikheto Sema lamented that the 9th Finance Commission went against the provision of the 16 point agreement and changed the funding pattern to the State. Sema added that the 13th Finance Commission was one of the most unfavourable to the State of Nagaland, due to the normative approach that the 13th FC took towards the State. As a result the period ended with a deficit of Rs. 1542.71, the Finance Secretary noted. He acknowledged that the 14th FC took a more favourable approach as it was more realistic. However, since the deficit was not covered by the 14th FC, development works have not been able to be taken up in the state, he added.
He informed that the state was left with 40 incomplete SPA projects with pending liabilities of Rs. 836 crores, with litigations from the court due to non-payment of bills to contractors.
He informed that the State has been requesting the GoI to consider this grant, as the NITI Aayog had also cleared it. However, a regret letter was received on December 16, 2017, Sema informed. He requested that the 15th FC consider this particular problem faced by Nagaland.
While stating that Nagaland has no objection to the GoI considering states for special category, Sema re-iterated that Nagaland, Jammu & Kashmir and Arunachal Pradesh should be considered special out of special category states due to the geo-political issues prevailing in these states.
He informed that while the award of the 14th FC was more favourable, owing to the huge deficit brought forward from the period of 13th FC, much development works could not be taken up and maintenance of roads and buildings could not be done due to shortage of funds.
Public buildings which are very old could not be maintained due to shortage of funds, he added, stating that there are problems faced for maintenance of power due to huge loss in revenue generated.
