Rio’s pitch for Spl.Status fund

CHIEF MINISTER SAYS 13TH FC AWARD ADVERSELY AFFECTED NAGALAND
State chief minister Neiphiu Rio expressed the hope that his speech and the power point presentation on the state of affairs by chief secretary Alemtemshi Jamir, have portrayed a clearer on the historical aspects and the Special Category status of Nagaland to the visiting Fourteenth Finance Commission (FFC) at the meeting with cabinet and officials on October 5.

Rio said this while addressing a press conference with  media persons in his office chamber soon after the meeting where he also expressed gratitude on FFC for first visiting Nagaland  in its itinerary of the north east.

The chief minister also revealed that the FFC was also given an account of the provisions of the 16-Point Agreement that formed the basis for the formation of Nagaland, which was earlier placed under the ministry of external affairs and also the special safeguard under Article 371(A) of the constitution.

He also said the FFC was informed about the change in funding pattern in 1989 which brought about a negative consequence on the state finances leading to deficits.

Rio also said he made a strong plea for rectification of the mistakes made by the previous Thirteenth Finance Commission (TFC) which adopted a ‘normative approach’ to funding, instead of considering the historical aspects and uniqueness of Nagas that gave Nagaland a ‘Special Category’ status. 

Rio said the FFC chairman Dr.Y.V.Reddy assured to look into the demand. He also said Dr. Reddy admitted having learnt much about the state’s historical aspects that led to ‘Special Category’ for Nagaland has given positive response.

Rio also said Nagaland was going to celebrate 50 years of statehood without basic infrastructures as many issues were ignored.

He said the government of India, which spent more than the state budget on military and paramilitary, should reverse it since law and order problems and insurgency have subsided.

Highlighting issues tabled by him before the FFC, Rio informed that the state requested FFC to recommend funds for maintenance of assets, financial problems faced for covering salary/pensions, infrastructure development including staffs quarters, road sector, capacity building, gainful job opportunities for the youth, lack of basic infrastructure like airport, medical, engineering, technical colleges.

On roads, he said it was not possible to provide good roads due to the hilly terrain and soil erosion without adequate protection from landslides, mudslides, erosions and natural disasters.

Rio said he pointed out to FFC members that without proper infrastructure, it was not possible to construct permanent all-weather roads in the state.

Rio also said he informed FFC members that 26% decrease in the state’s Annual Plan size against the previous year’s was also an obstruction for the development works in the state.

DIPR adds: Observing that insurgency-plagued states like Nagaland should be given gainful employment to the youth, Rio regretted that the commitment of former prime minister Atal Bihari Vajpayee for providing 25,000 job opportunities, during his visit in 2003, has not materialized.

He said the state’s own meagre resources has gone to capacity building supporting the youth where around 1000 youths are presently employed outside the state, working in various  sectors.

He also mentioned about  seven IR battalions raised by the state and employing  around 7000 people and the financial burden of managing the battalions.

He also cited the  expenses incurred due to creation of three new districts and 22 new RD Blocks, creation of DUDA.

Rio opined that the FFC require to take an in depth study to understand the ground reality faced by the State

Further, explaining about the increase of salary component as a result of implementation of the 6th RoP implementation and the increase of DA every year, Rio desired that the FFC would understand the position of the resource crunch hit state like Nagaland and come to its rescue.

On ownership of land and resources, Rio asserted that they cannot be shared. However, he said the government of India has to help with regard to business and other development activities.

State Govt. submits memorandum to 14th Finance Commission
Government of Nagaland has submitted a memorandum to the 14th Finance Commission (FCC) Saturday highlighting the state’s needs for special dispensation, assessment of revenue receipts and revenue expenditure, basic approach towards devolution of funds and maintenance of capital assets (roads and bridges and buildings).

The memorandum also gave a historical, socio economic background to the state along with position of the state in key areas, special category status of the state.

It also mentioned about the local bodies, calamity relief, subsidy, views of Nagaland on goods and services tax, status of Thirteen Finance Commission (TFC) and finally up-gradation and specific needs.

Chapter 5 of the memorandum stated how situation prevailing in the state has not improved, rather deteriorated and how the government of India “unilaterally abrogated” the commitment made in Clause 11 of the 16th Point Agreement and in 1989-90, the Centre stopped the practice of covering the BCR gap of the state government through additional Centre plan grants and how the normative approach adopted by TFC has further aggravated the financial position of the state.

The memorandum outlined the maintenance of capital asset, stressing on the severe resources constrains faced by the state and how it adversely affected the buildings, road and bridges, water supply, power infrastructure etc.

It also elaborated on the views of the state government on Goods and Service Tax (GST) and suggested on the need for creation of GST compensation fund.

On the TFC grants, the state government has urged that the guidelines and criteria for the recommended grants may by simplified to make the grants more accessible by the state.

The state government has submitted a note of proposals to the FCC for up-gradation and specific needs and a total of 25 projects proposals at an estimated cost of Rs. 1394.97 crores has been submitted for consideration of the commission.