Nagaland chief minister Neiphiu Rio made a persuasive submission to the visiting 15th Finance Commission officials at the second-day of their 3-day visit to Kohima in which he highlighted the need for the government of India to pay lump sum to Nagaland out of the consolidated fund each year for development and also grant-in –aid towards meeting the cost of running the administration.
During the meeting with the 15th Finance Commission team at the Chief Secretary’s Conference Hall Wednesday, Rio said the state finances began to deteriorate steadily and adversely due to discontinuance of grants to cover the Balance From Current Revenue (BCR) gap by granting Additional Central Plan Assistance (ACA) during the period of the 9th FC.
Further normative approach by the 13th FC also deprived the state of special category status and any special grants that led the state to struggle financially.
Due to normative approach at the end of the 13th FC, he said a huge budgetary deficit to the tune of Rs.1811.85 crore, that included liabilities of works completed but unpaid. Rio said revenue deficit continued on account of 10% increased tax devolution to states from 32% to 42% as this had not benefitted smaller states such as Nagaland. Rio said that aside 25% of total devolution of share of special category states as against 11.53% allocated by 14th FC was insufficient. He said out of 25% a percentage of 3% may be allocated to states having geopolitical implications like Nagaland.
He also explained that due to inability of the state in contributing 10% share for CSS and flagship schemes, the total accumulated shortage was Rs.294.05 crore and which had prevented the state from accessing the 90% central share for CSS and flagship schemes. He requested the 15th FC to recommend 100% central grant for CSS and flagship programmes as was intended in the 16 Point Agreement.
He also highlighted how the state had to negotiate high interest loans from HUDCO to construct 33 new buildings and the constraints in maintenance of old buildings some as old as 50 years due to lack of funds.
Rio also informed that owing to the content of the soil frequent road maintenance was costly and the poor financial situation made it difficult for the state to maintain them. He said the finance needed for road maintenance for the period of 15th FC was estimated at Rs. 3458 crore besides proposal for the new Raj Bhavan complex (Rs.400 crore), completion of new high court complex, infrastructure for tourism and 14 other development works all totalling Rs.7212 crore.
Rio also informed that payment of salary for the remaining two years was high on account of implementation of 7th Pay Commission w.e.f January 1, 2018 and the current 2018-19 carrying an additional burden of Rs.1272 crore. The second issue was RTE Act under which 1620 primary teachers and 1527 graduate teachers were appointed under SSA. However with new integrated scheme for SSA w.e.f. April 1, 2018 salaries have been halved and states asked to make up the shortfall.
Rio also informed about the recent monsoon calamity in the state which caused damages to roads, bridges and buildings estimated at Rs.1040.63 crore while cost of permanent and restorative work being Rs.189 crore.
Rio also said project cost for Nagaland’s only medical college in Kohima was Rs.189 crore . The college is expected to be functional by 2020 with 100 seats. He said the state required Rs.154.97 crore for salaries and Rs.149.15 crore for operational cost during the period of 15th FC.
He also placed requirement for construction of multipurpose buildings in all district headquarters to preserve tribal heritage, tradition and culture estimated at Rs.120 crore.
He also mentioned about the new Greenfield airport at Chiethu near Kohima for which 645.20 acres were acquired and another 398 acres to meet all requirement. Rio expressed the hope that the 15th FC would be sympathetic to the requests keeping in mind the special circumstances that had led to creation of Nagaland.
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