\nAccording to an official release issued by additional chief secretary & finance commissioner Toshi Aier, borrowed funds were generally utilized to finance capital expenditure which was expected to generate revenue either directly or indirectly, either immediately or in the near future.
\nThe finance commissioner said the question of government going on a \u201cborrowing spree\u201d did not arise as all borrowings were regulated by the ministry of finance and the planning commission as per established norms which were common for all the states.
\nHe said Nagaland government can not and did not borrow funds without the approval of the central government. Toshi Aier pointed out that loans were raised either directly from the central government or from open market and financial institutions only after obtaining consent of the ministry of finance under Article 293 (3) of the constitution of India.
\n\u201cWhile the gross borrowings during 2009-10 and 2010-11, as has been reported in the media, are correct, it is important to understand that planning commission\/ministry of finance regulate borrowings on a \u201cnet\u201d basis that is, the gross borrowings minus the repayments during the particular year,\u201d the finance commissioner said. Maintaining that government has no clue as to how the alleged interest payment of Rs.2144.18 crore (or Rs.2262.18 crore) for the year 2009-10 and 2010-11 has been worked out, Toshi Aier said those figures were grossly exaggerated. The finance commissioner disclosed that actual figures of interest payment during 2009-10 and 2010-2011 was Rs.362.51 crore and Rs.397.03 crore respectively.<\/p>\n
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