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Over Rs. 5000 cr. outstanding: Therie
Dimapur, May 1(NPN)
Published on 2 May. 2010 12:10 AM IST
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Former finance minister in the first DAN government and current Congress member K.Therie has slammed the “sheer fiscal mismanagement” by the ruling DAN which has landed Nagaland into a virtual financial crisis.
He said the deficit of Rs.597 crore as admitted by the chief minister in the March session along with Civil Deposit of over Rs.1000 crore including loans would result in an outstanding of around Rs.5300 crore.
Also quoting figures obtained through the union finance ministry, Therie said the outstanding loans of the state has shot up from Rs.2515 crore during 2003-04 to Rs.4058 crore in 2008-09. Also basing his projected outstanding on the average loan of Rs.300 crore taken by the state annually, Therie said the current total outstanding loans would be around Rs.4300 crore.
Therie also took a dig at the in-charge of state finance who claimed that the state’s Gross Domestic Product (GDP) ratio was 9.26% which is higher than the national average of 8.9%. Therie wondered how the figure was arrived saying “he appears to not understand GDP as he evaded questions from the media.”
With the award of the 13th F.C. at the level of the plan outlay of 2009-10, Therie said the actual budget figure should be Rs.4458 crore without taking into account the Ways & Means Advance and Civil Deposits both of which would affect cash outgo during the current financial year. He said the 13th Finance Commission (FC) award of a total of Rs.14,794.20 crore to Nagaland for five years (2010-15) or Rs.246.57 crore montly, was an increase of 84.40% over the previous 12th F.C. award.
On the agitation for implementation of the 6th ROP, Therie said the state employees and the central employees were living under the same economic condition and it was “unwarranted” that the state government refused the centre’s offer of Rs.400 crore as package. Even if the money was short of the total requirement, Therie said the employees would have taken collective responsibility in accepting the government’s offer through negotiation.
He also slammed the DAN government for failing to develop the State’s Own Revenue (SOR), which remains at a dismal 5%. Therie opined that the SOR was probably between twenty-twenty five percent over the period between the 12th FC and 13th FC with the step up of 84.40% by the latter. He said the state government had claimed growth of 13% in revenue as its resources but said alleged it was in fact, diversion of Plan and CSS fund into Non-Plan. He said if diversion had not been done, the SOR would have been much lesser. He said diversion of funds resulted in poor quality workmanship besides growing overhead expenditure due to random appointments and “contractor oriented developments”.
On the state’s power revenue, Therie said the Likhimro Hydro Electric Project built at a cost of Rs.265 crore was eventually “given away free of cost” to some private company and the state now having to purchase power from them. He also cited the giving away of the canning factory to private party that was in production besides the mechanized brick industry which has “vanished from the scene”.
He also castigated the industries department on payment of Rs.50 crore as transport subsidy last year and the projected amount for 2009-10 at Rs.120 crore. Therie said on paper Nagaland has more than 500 industries applying for subsidy while Rs.75 crore has been siphoned off.He also slammed the claims on agri-husbandry that exist on paper while the fact remained that Nagaland does not export any item but imports almost all items including agri-husbandry products.
Therie laid the blame on chief minister’s handling of the finance portfolio and said “the new generations will remember Neiphiu Rio in paying his debt” adding the “I want more” syndrome has driven DAN to indulge in naked corruption “with few moral-less officers.”

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