Sano Meru
August 18
KOHIMA (MExN): Nagaland Chief Minister, Neiphiu Rio today laid on the table of the house the white paper on utilization of one time grant of Rs. 365 crore received from the Central Government.
Delivering his statement during the first day of the Assembly session, Rio said that the White Paper was being issued in deference to the wishes of the opposition members of the house, although the Government had explained clearly the factual position in regard to this grant, while replying to starred Assembly Question No. 29 and 53, during the Budget Session, held in March 2005.
Rio also affirmed that the money under the Rs 365 crores grant was used to wipe out the estimated budget deficits of the State Government at the end of 2002-03 and not used for implementation of any project or scheme. “The Rs 365 crores was automatically adjusted in the State’s RBI account” he informed and stated that the Centre had never sought any utilization report or certificate in respect to this grant because they were aware of the manner in which the grants were used.
The Rs 365 crore was released by the Centre through the RBI on 31st March, 2003 to enable the new DAN Government to start the financial year with a clean slate, and that the central grant was fully adjusted by the RBI on the same day of its release to adjust the budget deficit or overdraft of Nagaland Government. He clarified that there was no possibility on the part of the State Government to utilize the said grant for any other purposes.
Rio also said that since they were not sure whether the Centre would grant their request for financial assistance of Rs. 365 crores, they had to take some precautionary measures to contain the cash overdraft from the RBI at the close of the financial year, so as to avoid embargo from RBI at the very beginning of their tenure. Therefore, as in the past years some State plan funds, after being released to the Departments concerned, were kept in the Civil Deposit (CD), and also the release of some CSS/NEC schemes received during March 2003 were deferred to the next financial year. The positive opening balance of Rs. 118.34 crores as on 1st April 2005 was because of the mentioned CD’s and the withheld CSS/NEC money, he said.
Rio concluded by saying that the central grant was given only on the last day of the financial year and by the time they learnt about it, the financial year was already over and the only balance left in the State’s RBI account the next day ie, the 1st of April 2003, was Rs. 118.34 crore, which was even less than the safety cushion they had kept in the form of CD and the deferred payments indicated above.
