State chief minister, Neiphiu Rio Tuesday said that despite the 13th Finance Commission having failed to take into consideration Nagaland’s special category status in its report, other special category states of the country was now likely to benefit from the planning commission because of Nagaland.
Clarifying the state finance position to partymen at the party CEC meeting, Rio reiterated that the 13th Finance Commission had not taken into consideration the special category status for which the state’s Plan has been affected. Rio however, revealed prime minister, finance minister and deputy chairman, planning commission assured to look into the matter and asked for a week time to study the matter before finalizing the plan allocation to the state.
He admitted that the actual shortfall of the state for the next five years was Rs 4142 crore and if the centre failed to bail out the state, Nagaland would be compelled to terminate the services of 36,000 government servants this year and 3000 each in the subsequent four years. However, Rio said that while the Planning Commission had fixed the discussion for finalization of the plan allocation earlier on May 4 last, he had written to the prime minister seeking appointment after diagnosing the lacunae in the 13th Finance Commission award. He said the award had not taken into consideration the special category status. Similarly, he wrote another letter to deputy chairman planning commission seeking for deferment of the scheduled plan discussion for the state until he met the prime minister. Despite the Parliament session being on, Rio said was given appointment and met the prime minister where he explained that as per the agreement while creation of Nagaland, the Centre was to bear all expenditure for salaries. Rio said the prime minister then called the finance minister and asked him to explain matter further.
Rio said he explained the matter to the finance minister who also sought a week’s time to look into the problem before announcing the plan allocation to Nagaland. He expressed hope that government of India would be favourable to the state so that it can carry forward the plans and program. He also reiterated that the shortfall was mainly due to the projection for implementation of the 6 ROP.
Further, Rio said the state chief secretary had signed the last ROP effective from 1998 but the state government did not have money. CANSSEA had gone to the High Court but the judgement went in favour of the state since there was no provision for the employees to demand higher salary. Later, CANSSEA took the matter to the Supreme Court but the court has yet to give its ruling.
He reminded that the state employees constitute 6% of the population but consume 61% of the state budget while the remaining 94% of the population were left with only 39% fund. Rio pointed out that as per directive of the PCI, the maximum fund spent for salaries should be brought down to 35% of the budget,which the state government expressed inability to follow. He said that while the pay revision was done every 10 years, there was fresh DA package was awarded every six months to make up the rise in prices of commodities.
Home minister Imkong L Imchen also took a dig at the 6th ROP Demand Forum aying that as per rules of conduct, they cannot counter every statement of the chief minister.
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