Dimapur, March 19 (MExN): The department of Finance of Nagaland clarifies on the state’s fiscal deficit. The department issued a note today in response to a new report concerning Reserve Bank of India’s opinion of the state’s fiscal health.
The department said “Nagaland’s fiscal deficit for 2010-11 has been contained at 2.81% of GSDP which is an improvement over the target of 3.5% fixed by the thirteenth Finance Commission.”
“It is not a fact that RBI has cautioned Nagaland on fiscal deficit. RBI has merely made an analysis of the fiscal performance of all the states including Nagaland,” Finance Commissioner Toshi Aier asserted. “It appears that the Reporter has drawn his own conclusion independent of the analysis appearing in the RBI website quoted in the news story,” Aier explained.
The department explained: “In its analysis, the RBI reflected the fiscal position of the states vis-a-vis the fiscal deficit targets stipulated by the twelfth and the thirteenth finance commission.” The fiscal deficit targets for Nagaland fixed by the Thirteenth Finance Commission as percentage of “GSDP are 3.5% for the years 2010-2011, 2011-2012 and 2012-2013 and 3% for the years 2013-2014 and 2014-2015.”
“It is a matter of satisfaction that Nagaland’s fiscal deficit for 2010-11 has been contained at 2.81% of GSDP which is an improvement over the target of 3.5% fixed by the thirteenth Finance Commission,” Aier added.
