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Congress dubs DAN govt. as ‘govt. of deficits’
Published on 19 Jun. 2010 12:49 AM IST
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Close on the heels of the Centre’s allocation of a major step up of the state’s plan outlay by Rs.1500 crore besides a generous grant of Rs.712 crore for implementing the 6th RoP, the NPCC today hit out at the DAN government as ‘the government of deficits’.
NPCC general secretary Vaprumu Demo reminded that in contrast, the 2002-03 plan outlay was Rs.424 crore during the NDA government. Also during that period, the Centre had provided Rs.365 crore as grant to wipe out the deficit.
Accordingly, the DAN government on July 22, 2003 presented a surplus budget of Rs.18.47 crore for 2003-04. Further the NPCC said the people of Nagaland “also remember with gratitude” the generous grant of Rs.1050 crore by the then prime minister Atal Behari Vajpayee through a special economic package, “unprecedented flow of centrally sponsored schemes” and “a huge increase in the 12th finance commission recommendation.”
However, the NPCC said it was “most unfortunate” that the Rs.365 crore grant was “thoroughly misused by the DAN government”. Pointing out that the Congress Legislature Party then had demanded a white paper on utilization of the special grant, the NPCC said due to rampant corruption and total mismanagement, the surplus budget of Rs.18.47 crore in 2003-04 was reduced to “an unprecedented projected deficit” of Rs.597 crore for 2010-11 by the present DAN government.
Further, the NPCC pointed out that as per the Nagaland Fiscal Responsibilities and Budget Management Act 2005, fiscal deficit was to be reduced to 3% of the GDPS by the end of 2009-10 but it was a miserable failure given the admitted deficit of Rs.597 crore.
The NPCC said the DAN government not only deprived the people of Nagaland “a golden opportunity for fiscal discipline by wiping out the deficit” but defeated the very purpose of the Act through financial indiscipline and rampant corruption at all levels.
Reminding that the CLP had warned that the “ghost of Rs.365 crore shall continue to haunt the DAN government”, the NPCC said today the state is faced with acute financial crisis with outstanding debt increased from Rs.2525 cr in 2003-04 to around Rs.4900 cr in 2010 “and still mounting”, as admitted by the finance department. It said during the period of six years, there was an unprecedented increase of deficit of about Rs.2385 cr excluding over Rs.500 cr kept under Civil Deposits. The NPCC said the government of Nagaland was paying over Rs.300 cr as mounting debt servicing every year and that the current Balance Credit Revenue (BCR) of Rs.675.18 cr served as “clear indicator of serious financial mismanagement”.
The NPCC said unless the NPF-led DAN government undertook drastic measures to improve the financial condition, the present NPF-led DAN government is leading the people Nagaland towards “financial emergency and debt trap.”
Further, it said there is no rational justification for such high borrowings since Nagaland is “purely a consuming state and not producing state” and therefore the principle that high borrowings generate economic activity does not apply in Nagaland”since industrial productivity has “been dismally over the years.”
The NPCC said despite gradual step up in annual plan outlays during the last seven years, there have been high borrowings, unprecedented flow of CSS funds and the tangible development on the ground “is not commensurate” but “just negligible”.
It besides huge deficits, there is huge financial and development deficit under the present DAN government and substantiated it by quoting a speech at Mokokchung by a member of the planning commission, who said that Nagaland still required more development.

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