NPF: No financial mismanagement

Blames ‘negative tactics’ of Congress to stall development projects in Nagaland

DIMAPUR, MAY 16 (MExN): The ruling Naga Peoples Front (NPF) has responded to the recent statement of the Nagaland Pradesh Congress Committee (NPCC) published in sections of the local media related to the alleged financial management of the State and a number of other allegations made by the Congress. 

The NPF in a press note issued by its Press & Media Bureau has clarified that there has been no financial mismanagement, nor has there been any case of misappropriation as alleged. 

Pointing out that the DAN Government, in its past two terms, has ushered in tremendous amount of development, along with introduction of people friendly policies and programmes, it stated that the people of Nagaland are the direct beneficiaries of the DAN’s good governance, and that the “people will not be misled by the allegations of the Congress.”

The NPF justified this by stating that the electorate has given a record landslide victory to the NPF led DAN coalition in the recent Assembly election. It went on to say that such kind of continuous development in the last 10 years would not have been possible without sound financial management.

As regards the allegations by the Nagaland Congress party that Nagaland’s Annual Plan discussion has been delayed due to financial problems being faced by the State, the NPF termed this as “totally wrong” and pointing out that the State Government “was ready for it” since April, 2013. “In fact, when the Chief Minister called on Dr. Montek Singh Ahluwalia, the Deputy Chairman of Planning Commission at Delhi on 11th April, 2013, he had indicated our readiness for early plan discussions”.

The NPF argued that many other states of the country including neighboring states had their plan discussions with the Planning Commission only recently, and the process is still going on for many other states. In the case of Nagaland, the date for plan discussion has been fixed on May 27, 2013, informed the NPF press note.

On the claim about money being kept in Civil Deposit (CD), the NPF has described this as “a normal process of sound financial management, especially for deficit affected States”. “In fact, all the other North East States, including the Congress ruled States, as well as the Central Government itself are also facing similar problems of deficit, in spite of some preferential treatment given to them by the Centre, and they also resort to these kinds of deferred payments for uncompleted works,” the NPF explained.

Therefore, there was no irregularity involved in keeping funds under CD, especially in respect of uncompleted works at the end of the financial year, the NPF stated. 

It further said, if all these funds are released in one go, it will rather lead to financial irregularities, such as making payment to contractors without properly executing the works, or keeping large funds unutilized outside Governments accounts, either in cash, or in the current accounts of HODs/ DDOs, which is not allowed as per financial rules.

Stating that the NPCC’s “wrong allegation of financial mismanagement is also way off the mark,” the NPF has stated that the Congress led UPA Government had been “appreciating the fiscal management of the State.” The NPF informed that in a letter to the Nagaland Chief Minister dated 21st January, 2013, Union Finance Minister P. Chidambaram stated that “I notice with satisfaction that in 2012-13 (BE), Nagaland is revenue surplus and its Fiscal Deficit/GSDP ratio of 3.48% and Debt/GSDP ratio of 49.2% are within the targets prescribed by the 13th Finance Commission”.

The reality according to the NPF was that it was under the Congress regime that the funding pattern for Nagaland State was changed from the earlier position, where the Government of India would clear the State’s fiscal deficit every year, while finalizing the scheme of financing for the State’s Annual Plan, thereby allowing the State to start the new financial year with zero deficit.

“This change came into effect despite the assurance of the 16th Points Agreement, wherein it states that the funds required for the administration and development of Nagaland would be paid from the Consolidated Fund of India. It is because of this change in funding pattern that Nagaland started facing the problem of deficits accumulating from year to year. Unfortunately the then Congress Government had completely remained silent and did not take up any serious measure with the Government of India when the financial pattern was changed against the assurance enshrined in Clause 11 of the 16 Points Agreement,” stated the NPF.

It was pointed out that when the DAN Government came to power in 2003, it was handed over a deficit of Rs. 365 crore by the last Congress Ministry. Over and above that, they left behind a back-log of “uncleared liabilities” of more than Rs. 150 crores in the shape of works already done, but the fund allocated for the purpose having been already spent elsewhere, stated the NPF.

The ruling NPF also stated that an amount of Rs. 300 crores which was assured to Nagaland as ENPO package under the plan allocation last year under Special Plan Assistance (SPA) was never sanctioned to the State.

The statement from the NPF has also mentioned that when the Prime Minister of India had visited Kohima in 2003, he had made a grand announcement of sanctioning Rs. 400 crores to convert the Kohima- Dimapur highway into a four lane expressway, and Rs. 250 crores for creation of youth employment. The PM’s package had totaled Rs. 1050 crores, which included a thermal power plant exclusively for Nagaland, it was stated.

“But till today, not a rock has moved, nor a paper approved towards realization of these projects. The Congress led government made every possible excuse to deny the Naga people, what was due to us. If the PM’s commitment had been realized, our youth would have benefited the most, the condition of the main national highway would have been much better, and the power scenario of Nagaland would not be where it is today. Is not the Congress party responsible for the failed promises?”  

The NPF stated that the DAN Government “will not be discouraged by these negative tactics of the Congress” and “will leave no stone unturned in our endeavor to bring development and progress to the people”. “We will continue to voice the right of the Naga people. We reiterate that we are not asking New Delhi for favors, but we are only asking for what is ours.”  
 



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