Kohima : Nagaland Chief Minister Neiphiu Rio has urged the 13th Finance Commission to make a special and generous dispensation to the State of Nagaland keeping in view the unique and special background of the state. Addressing the meeting with the 13th Finance Commission on 20th January 2008 at Hotel Japfü Kohima, Rio made it very clear that the creation of the state of Nagaland was purely out of political necessity and not on economic viability.
The chief minister mentioned clause 11 of the 16-Point Agreement of 1960 which states ‘to supplement the revenue of Nagaland there will be need for the Government of India to pay out of the consolidated fund of India firstly, a lump-sum to meet the cost of development in Nagaland and secondly a grant-in-aid towards the cost of administration’.
According to an official news bulletin, Rio also sought from the visiting Finance panel, a comprehensive equalization grant, to enable the state to provide basic public services to its people at a level comparable to other regions or states of the country. Rio also called upon the commission to make special recommendations for central grants to maintain capital assets.
Besides, Rio also made a mention for special grants for the on-going construction of Assembly Complex at Kohima the Multi-Disciplinary Sports Complex at Dimapur, construction of new High Court building at Kohima, construction of a battalion headquarter of the IR battalions at various locations and for the much needed upgrade of district administrations.
Rio also apprised the commission on the issue of revision of pay for State government employees, as a follow up to the pay revision implemented by the Central government on the recommendation of the Sixth Pay Commission. In this regard, the chief minister put forward that the commission may consider the projected additional requirement of funds, on account of pay revision during the 5 years period to be covered by the commission.
According to a separate press note from the Thirteenth Finance Commission, Rio also pointed out that the ownership of land in Nagaland vests in individuals, clans or tribes and not the Government or the State and as such making it difficult for the State to enhance its revenues.
It was also stated that Nagaland was a backward State having no industrial activity restricting the economic growth of the State and that there was no central public sector undertaking in the State. “After attaining Statehood, the Government has to spend more time and efforts towards maintenance of law and order rather than in development activities”, Rio was quoted as saying.
Similarly the Chief Minister pointed to the disadvantage of geo-physical characteristics like unstable soil structure of the Himalayan foothills and topography of Nagaland thereby having an adverse effect and keeping the State away from the centres of developed communication and commerce and industry. While stating that the State had made considerable progress on the development front, still the inadequate infrastructure and communication facilities was resulting in absence of industrial base, Rio stated.
The Chief Minister, in this context, put forward several requests for consideration of the Commission. This included the need for assessing the State’s Own revenue, low economic base and potential of the State, as well as ground realities, vis-a-vis the insurgency related atmosphere may be taken into consideration; taking a sympathetic view in making its recommendations in respect of the State keeping in view the unique and special background of the State. Rio also put forward the point that the formula for fiscal transfer should enable the State to provide the basic public services to its people at a level which is comparable to other regions or States of the Country besides providing comprehensive equalization grant to the Special Category States to build up their revenue capacity within a reasonable timeframe.
Further all central loans outstanding as on 31.3.2010 may be written off, at least in respect of the Special Category States, Rio requested while asking that special grant may be provided to the State to pay off all the outstanding institutional loans as on 31.3.2010. The Chief Minister also informed that the State had projected total maintenance grant of Rs. 4653 crore with the request that these may be considered without imposing conditionality of past level of expenditure. Rio also requested to the Commission to recommend grants on maintenance of capital assets, upgradation & State-specific needs as suggested in the memorandum given to the Commission.
Proposing the vote of thanks, Nagaland Minister for Planning, T.R. Zeliang expressed gratitude to the Chairman and the Members of the 13th Finance Commission for their love and concern towards the Nagas, through their presence and was hopeful that the Commission would assist the government’s efforts at governance reforms and development process with their generous recommendations.
Chairman of the 13th Finance Commission, Dr. Vijay L. Kelkar also addressed the meeting. The State government gave a power point presentation highlighting in the background and socio-economic profile of Nagaland, status of key sectors, progress in key areas since statehood, overview of the state’s finances, problem areas, success stories, completion of major projects fiscal and policy initiatives maintenances assets, special needs and submission before the commission.
The programme was chaired by Chief Secretary, Lalhuma and was attended by Ministers, Parliamentary Secretaries and host of senior state government officials. During the afternoon session, the Chairman and members of the 13th Finance Commission met with representatives of local rural and urban bodies, trade industries, commerce and political parties.
Finance Commission all praise for communitisation model
Dimapur : The Thirteenth Finance Commission which is on a three day visit to Nagaland from January 19 to the 21st today held a top-level official meeting where the Nagaland government’s communitisation experiment came in for special praise and mention. The commission congratulated the State for encouraging public-private initiatives at the village level through the Nagaland Communitisation of Public Institutions and Service Act 2002 while also appreciating the skill-development initiatives of the State Government. It suggested that the State Government make use of the success of the communitisation experiment and rich human capital in the State to strengthen micro-finance at local-level through VDBs and cover PDS under communitisation.
Dr. Vijay L. Kelkar, chairman, B.K. Chaturvedi, Prof. Atul Sarma and Dr. Sanjiv Misra, members of the Thirteenth Finance Commission, and Sumit Bose, Secretary are visiting the State as part of consultations with the State Government and key stake holders. The commission met with the chief minister, Speaker of Nagaland Legislative Assembly, other Cabinet ministers and senior officials of the State Government.
In reply to the Chief Minister, Chairman, Finance Commission made several observations, stated an official press note issued by the Thirteenth Finance Commission. It referred to the unprecedented crisis the World economy is presently undergoing and emphasized the need for a collective response by all levels of Government of India to enable the country to rise above these challenges.
The Commission also pointed out that though the literacy rates of Nagaland are comparable to the national average, the sex ratio and 0-6 sex ratio are both significantly below the national average and even below the average for special category States and per capital GSDP of the State is also lower than the national average. At the same time it congratulated the State Government for improvement in own revenue/GSDP ratio from 2000-01 to 2005-06 and also for successful implementation of VAT in 2005. However, Dr Kelkar showed some concern on the decline of revenue/GSDP ratio and fall in buoyancies in the recent years while emphasizing the benefits of GST and urged the State Government to assist in building a national consensus for prompt implementation of GST.
Even though the salaries, pensions and interest payments account for over three-fourths of total revenue expenditure, the Chairman noted that these expenditures have been declining in the last two years. It also complimented the State Government on enacting FRBM legislations and meeting its fiscal targets. However, the Commission felt that a medium term strategy for accelerating productive public investment in key priority areas is required.
The panel also interacted with representatives of political parties, local bodies and Trade, Commerce and Industry Associations. On 19th January, 2009, the Commission visited communitised schools, primary health centres, VDB, water supply and power. Before its visit to the State, the Commission held a meeting with Accountant General of Nagaland on 6th January, 2009 in its office at New Delhi. The Commission will finalize its recommendations by October 2009 after completing its discussions with all the State Governments, the Government of India and relevant stake holders.”
Source: Morung Express
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The chief minister mentioned clause 11 of the 16-Point Agreement of 1960 which states ‘to supplement the revenue of Nagaland there will be need for the Government of India to pay out of the consolidated fund of India firstly, a lump-sum to meet the cost of development in Nagaland and secondly a grant-in-aid towards the cost of administration’.
According to an official news bulletin, Rio also sought from the visiting Finance panel, a comprehensive equalization grant, to enable the state to provide basic public services to its people at a level comparable to other regions or states of the country. Rio also called upon the commission to make special recommendations for central grants to maintain capital assets.
Besides, Rio also made a mention for special grants for the on-going construction of Assembly Complex at Kohima the Multi-Disciplinary Sports Complex at Dimapur, construction of new High Court building at Kohima, construction of a battalion headquarter of the IR battalions at various locations and for the much needed upgrade of district administrations.
Rio also apprised the commission on the issue of revision of pay for State government employees, as a follow up to the pay revision implemented by the Central government on the recommendation of the Sixth Pay Commission. In this regard, the chief minister put forward that the commission may consider the projected additional requirement of funds, on account of pay revision during the 5 years period to be covered by the commission.
According to a separate press note from the Thirteenth Finance Commission, Rio also pointed out that the ownership of land in Nagaland vests in individuals, clans or tribes and not the Government or the State and as such making it difficult for the State to enhance its revenues.
It was also stated that Nagaland was a backward State having no industrial activity restricting the economic growth of the State and that there was no central public sector undertaking in the State. “After attaining Statehood, the Government has to spend more time and efforts towards maintenance of law and order rather than in development activities”, Rio was quoted as saying.
Similarly the Chief Minister pointed to the disadvantage of geo-physical characteristics like unstable soil structure of the Himalayan foothills and topography of Nagaland thereby having an adverse effect and keeping the State away from the centres of developed communication and commerce and industry. While stating that the State had made considerable progress on the development front, still the inadequate infrastructure and communication facilities was resulting in absence of industrial base, Rio stated.
The Chief Minister, in this context, put forward several requests for consideration of the Commission. This included the need for assessing the State’s Own revenue, low economic base and potential of the State, as well as ground realities, vis-a-vis the insurgency related atmosphere may be taken into consideration; taking a sympathetic view in making its recommendations in respect of the State keeping in view the unique and special background of the State. Rio also put forward the point that the formula for fiscal transfer should enable the State to provide the basic public services to its people at a level which is comparable to other regions or States of the Country besides providing comprehensive equalization grant to the Special Category States to build up their revenue capacity within a reasonable timeframe.
Further all central loans outstanding as on 31.3.2010 may be written off, at least in respect of the Special Category States, Rio requested while asking that special grant may be provided to the State to pay off all the outstanding institutional loans as on 31.3.2010. The Chief Minister also informed that the State had projected total maintenance grant of Rs. 4653 crore with the request that these may be considered without imposing conditionality of past level of expenditure. Rio also requested to the Commission to recommend grants on maintenance of capital assets, upgradation & State-specific needs as suggested in the memorandum given to the Commission.
Proposing the vote of thanks, Nagaland Minister for Planning, T.R. Zeliang expressed gratitude to the Chairman and the Members of the 13th Finance Commission for their love and concern towards the Nagas, through their presence and was hopeful that the Commission would assist the government’s efforts at governance reforms and development process with their generous recommendations.
Chairman of the 13th Finance Commission, Dr. Vijay L. Kelkar also addressed the meeting. The State government gave a power point presentation highlighting in the background and socio-economic profile of Nagaland, status of key sectors, progress in key areas since statehood, overview of the state’s finances, problem areas, success stories, completion of major projects fiscal and policy initiatives maintenances assets, special needs and submission before the commission.
The programme was chaired by Chief Secretary, Lalhuma and was attended by Ministers, Parliamentary Secretaries and host of senior state government officials. During the afternoon session, the Chairman and members of the 13th Finance Commission met with representatives of local rural and urban bodies, trade industries, commerce and political parties.
Finance Commission all praise for communitisation model
Dimapur : The Thirteenth Finance Commission which is on a three day visit to Nagaland from January 19 to the 21st today held a top-level official meeting where the Nagaland government’s communitisation experiment came in for special praise and mention. The commission congratulated the State for encouraging public-private initiatives at the village level through the Nagaland Communitisation of Public Institutions and Service Act 2002 while also appreciating the skill-development initiatives of the State Government. It suggested that the State Government make use of the success of the communitisation experiment and rich human capital in the State to strengthen micro-finance at local-level through VDBs and cover PDS under communitisation.
Dr. Vijay L. Kelkar, chairman, B.K. Chaturvedi, Prof. Atul Sarma and Dr. Sanjiv Misra, members of the Thirteenth Finance Commission, and Sumit Bose, Secretary are visiting the State as part of consultations with the State Government and key stake holders. The commission met with the chief minister, Speaker of Nagaland Legislative Assembly, other Cabinet ministers and senior officials of the State Government.
In reply to the Chief Minister, Chairman, Finance Commission made several observations, stated an official press note issued by the Thirteenth Finance Commission. It referred to the unprecedented crisis the World economy is presently undergoing and emphasized the need for a collective response by all levels of Government of India to enable the country to rise above these challenges.
The Commission also pointed out that though the literacy rates of Nagaland are comparable to the national average, the sex ratio and 0-6 sex ratio are both significantly below the national average and even below the average for special category States and per capital GSDP of the State is also lower than the national average. At the same time it congratulated the State Government for improvement in own revenue/GSDP ratio from 2000-01 to 2005-06 and also for successful implementation of VAT in 2005. However, Dr Kelkar showed some concern on the decline of revenue/GSDP ratio and fall in buoyancies in the recent years while emphasizing the benefits of GST and urged the State Government to assist in building a national consensus for prompt implementation of GST.
Even though the salaries, pensions and interest payments account for over three-fourths of total revenue expenditure, the Chairman noted that these expenditures have been declining in the last two years. It also complimented the State Government on enacting FRBM legislations and meeting its fiscal targets. However, the Commission felt that a medium term strategy for accelerating productive public investment in key priority areas is required.
The panel also interacted with representatives of political parties, local bodies and Trade, Commerce and Industry Associations. On 19th January, 2009, the Commission visited communitised schools, primary health centres, VDB, water supply and power. Before its visit to the State, the Commission held a meeting with Accountant General of Nagaland on 6th January, 2009 in its office at New Delhi. The Commission will finalize its recommendations by October 2009 after completing its discussions with all the State Governments, the Government of India and relevant stake holders.”
Source: Morung Express
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