15th FC members urge Nagaland Government to increase revenue

KOHIMA, DECEMBER 8 (MExN): Two members of the 15th Finance Commission – Dr. Ashok Lahiri and Ajay Narayan Jha today urged the Nagaland Government to explore more avenues to generate resources.

They further stressed on rationalisation of government employees to bring down revenue expenditure and increase developmental expenditure. The members are on a two day visit to the State and met with the Chief Minister, State Minister for Planning and the Chief Secretary in Kohima today. 

The CM raised issues such as help needed setting up the Chiethu airport, the effect felt on the manufacturing sector due to the SC ban on felling of timber, and non-completion of road projects in the State. 

The Planning Minister highlighted concerns over slow rate of development and the need for funds for asset maintenance. He also expressed the problem faced by the State due to discontinuation of SPA funding, resulting in liabilities of more than Rs. 500 crore.

The two members meanwhile observed that the State has high revenue expenditure compared to other NE States, and that the level of AT&C losses in the power sector is very high. Other issues discussed included Direct Benefits Transfer (DBT), PFMS, banking coverage, low CD ratio, low resource base, high revenue expenditure and decline in capital expenditure. 

Dr. Ashok Lahiri emphasized the need to focus on the agri sector and to reduce dependence on commodities being purchased from outside the State. He also pointed out to the need to become more self-sufficient in fish and meat products. 

The Chief Secretary explained the measures being taken to rationalize the number of government employees by the Manpower Rationalization Committee and efforts towards convergence of various government sectors. He requested the Commission to give due consideration to cover the revenue gap and also provide funds for State Specific needs to ensure a steady pace of development. The members were also informed of the difficulties faced due to poor banking coverage as well as poor network coverage hampering progress of DBT.