Dr Asangba Tzüdir
The finance portfolio finds comfortably nestled in the hands of the Chief Minister since the ouster of K. Therie, the then Finance Minister. Since his ouster, the Nagaland state government has kept the finance portfolio with the Chief Minister and having no time frame, the finance portfolio has been ‘normalized’ as the Chief Minister’s portfolio. This has remained ‘unquestioned’ for many years now with the Chief Minister having to present the state budget.
What is intriguing is that the two most important portfolios is being held by one person which speaks volumes about the existing ‘governmental’ power structure in Nagaland. The absence of a Finance Minister also gives more power so also ‘unaccounted power’ to the planning department.
The Chief Minister presenting the budget and giving a statement of the estimated receipts and expenditure of the State for a financial year does ‘not assure’ the rest of the aspects related to budget. What have remained ignored and unquestioned for these many years are the aspects related to budgeting.
A major element of financial data activities rests in the act of budgeting where finite resources to the prioritized needs of the various departments are allocated. Budgeting also provides an important tool for the control and evaluation of sources and the use of resources. It goes a lot into the control and execution of activities which have been authorized by the budget and on which financial performance can be evaluated on the budgeted and the actual.
Thus, the whole process of budgeting is to maintain financial accountability not simply for the sake of fulfilling book accounting, but that, a clear financial direction is provided for the overall growth of the economy. Since budget is like a legal document that authorizes spending what needs to be clearly studied is the level of planning that goes into the making of the budget.
The absence of a Finance Minister; budgeting; so also financial accountability, has had a forceful impact on the financial status of the state. The financial mismanagement and the huge fiscal deficit is a clear case of improper planning where the departments may just get lump sum amounts and not based on a properly worked out receipts and expenditures. And in the absence of a proper budgeting, money can be overly used under Non-Plan heads.
As a case in point, the state Non-Plan expenditure head for the period 2016-2017 excluding servicing of debts stood at a whooping amount of 6129.32 crores (Source: DIPR). Such a hefty amount is just ‘passed off’ under non-plan expenditure. Irrespective of the nature and ‘necessity’ of any expenditure coming under non-plan, it only reflects the absence of a proper financial planning process and budgeting especially when the state is running under a huge deficit.
The finance portfolio seems like a ‘special package’ meant for the Chief Minister but what is needed is a Finance Minister to ‘relieve’ the Chief Minister of this added responsibility whether he likes it or not. There may be counter arguments but a Finance Minister needs to be in place not simply to fulfill the ‘technicalities’ including the preparation of annual fiscal budget, but to put on record and ensure a proper process of budgeting and having adequate regulations for its execution throughout a financial year. This will not only create financial accountability but also provide a clear financial working direction within a proper plan.
(Dr. Asangba Tzüdir contributes a weekly guest editorial to The Morung Express. Comments can be mailed to asangtz@gmail.com)
