Morung Express News
Chümoukedima | February 11
Nagaland Chief Minister Dr Neiphiu Rio on February 11 cautioned that the State could face a severe fiscal crisis, including non-payment of salaries, if the 16th Finance Commission does not restore the Revenue Gap Grant, which he said could cost Nagaland Rs 8,000 to Rs 9,000 crore in a year.
He was addressing party workers during a ‘grand reception’ organised by the Naga People’s Front (NPF) Central Headquarters at the NPF Office, Chümoukedima, following his return from New Delhi.
Recalling the February 4 meeting with Union Finance Minister Nirmala Sitharaman, CM Rio said the delegation discussed the 16th FV award and the earlier 16-point agreement under which administrative costs and development grants were to be provided from the Consolidated Fund of India.
“. But the 9th Finance Commission in 1989 did not give this. So we went into a crisis,” he said.
CM Rio explained that prior to that, excess expenditure was covered from the Consolidated Fund of India to ensure a zero-deficit budget, with no backlog.
“Even at that time, I was working as a contractor; not a single bill was pending. Excess payments were covered by the Government of India to ensure zero liability,” he shared.
However, after the change, the deficit “kept growing… thousands upon thousands of crores.” Though a Revenue Gap Grant was provided to bridge the shortfall, he said the 16th FC has now dropped it.
“If they don’t give it, we will lose Rs 8,000 to Rs 9,000 crore in one year. Meaning, development will be weak. But the main issue is that government servants won’t get their salaries. Not a single person will get a salary,” he claimed.
CM Rio said he conveyed the gravity of the situation to Sitharaman. “The underground groups are already doing a revolution. If a Finance Commission comes and salaries aren’t paid, there will be an ‘overground revolution’ as well. This will be a problem for us and for you. And our Naga Political Agreement will suffer,” he said.
He maintained that the Finance Minister responded by assuring that the Centre would “take care of everything.”
He also recounted that when asked about the State’s Budget session, he replied: “If you give money, we will hold the budget session. Without money, how can we hold a budget session? If you give the money, we are thinking of holding it in the first week.”
CM said he conveyed the same concerns to the Union Home Minister, and both leaders gave assurances.
“Money must be given. Otherwise, while political dialogue is ongoing for a solution, if the State Government cannot run, it won’t work,” he said.
Warning of the consequences of continued deficits, CM Rio said that if a popular government cannot function, President’s Rule could follow. “If we don’t get salaries, we have to fight with Delhi. So it would be a failed State,” he added.
Maintaining that both Union Ministers had assured support, Rio said he returned “with hope” and expressed confidence that the Centre would address the State’s concerns.
