Dr Asangba Tzudir
The Nagaland Economic Survey 2023-2024 done by the Directorate of Economics and Statistics, and tabled by Nagaland Chief Minister in the recently concluded 4th Session of the 14th Nagaland Legislative Assembly projected that “Nagaland’s economy is expected to grow by 7.73%. In the public finance, during 2023-2024 (Budget Estimates), the state fiscal deficit is estimated to remain at 2.83 percent of GSDP down from 5.71 percent during 2022-2023 (Revised Estimates).
Now without going further into the details of the contents of the budget, bringing into perspective shared by the Rising People’s Party (RPP), it alleged that the budget “lacked imagination and was more or less a con job.” Contending that, it has nothing for the common persons, sports persons, entrepreneurs, elderly and farmers etc., it added that, “one gets a feeling that it’s copy-pasted straight from Nirmala Sitharaman’s budget speech.” RPP also pointed out that the various developmental works sponsored by the Government of India (GoI) by way of Centrally Sponsored Schemes (CSS) were collated as State Budget for the financial year 2024-2025 as if these were state Government initiatives.
Without going into the economics and growth reflected in the budget, and also the merit of the accusations, it is pertinent to see the role of state budgeting especially in the light of the fiscal deficit. An economy where the state continues to reel under the cloud of dependency syndrome, makes budgeting more challenging especially where the funds and resources allocation which largely depends on the amount of ‘central resources’ that is put into the begging bowl. As such, fund allocation and diversions are bound to happen. This has also led to pending payments citing lack of funds.
As such, even as the economic growth rate is expected to grow by 7.73% what will continue to remain, besides other things, is ‘lack of funds’ which really hampers the many who are at the mercy of the state government for acquiring a bare minimum, not to mention quality of life that would go along with the projected economic growth.
While not many may be technically aware of what to expect from the budget presented in the assembly, yet, one may get an idea of what to expect (or not expect) from the policy highlights of the budget. That, as part of policy highlight and towards revenue augmentation, the state will examine the possibility of the sale of liquor to foreign nationals and also introduce the sale of state lotteries. It also aims to start oil exploration and extraction in the disputed Area Belt after negotiations with Assam and the central government concludes. One may hope that these are not just loose talks, and which are also contingent upon certain considerations. Further, policies on the pension which seeks removal of doubtful payments as a measure to reduce expenditure on pensions; then the CM’s health insurance, and the Micro-Financing all calls for proper policy measures in order that there is no mismanagement of funds.
Most importantly, at a time when the state is really going through a financial crisis, it is imperative that resources are allocated to where it was budgeted to be allocated, else resources mismanagement and diversion, unseen and unnecessary expenses will only cause a heavier financial burden.
At the end, budgeting is also about building trust and partnerships between the government and the public at large. It’s not about who benefits from the state budget but the State budget should be visionary enough to map the direction of actual growth by providing a well laid roadmap on the income and expenditure and the level of quality of life which the people can expect out of the budget. Data’s and statistics will be of no relevance if it is not properly laid in praxis as per the budgeting, that the laid out budget should not be violated.
(Dr Asangba Tzudir contributes a weekly guest editorial to The Morung Express. Comments can be emailed to asangtz@gmail.com)
