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Bamboo, rubber to enhance GDP
Correspondent KOHIMA, FEB 19 (NPN):
Published on 20 Feb. 2011 12:13 AM IST
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It’s all about understanding the intricacies of formulating statistics that speaks loudly when it comes to calculating the Gross Domestic Product (GDP) that has a direct bearing on the state’s plan financing.
Obtaining more funds from the Centre is no longer a simple matter of asking or pleading but saying it with figures. After extensive exercises in the run up to the forthcoming budget session due to be held sometime in March next, some vital items such as bamboo and rubber were found not to have been included while calculating the GDP of the state.
This was disclosed by Additional Chief Secretary and Development Commissioner Alemtemshi Jamir to Nagaland Post in an exclusive interview. Massive rubber plantations are going on in various part of the state but these were not taken into account while calculating the GDP, said Alemtemshi. Similarly, Bamboo which is the most extensively used materials for any constructions in the society was also not taken into account except in terms of royalty collected by the Forest Department, he said.
On the other hand, quarrying and mining too were found not to be properly calculated while arriving at the GDP figure, Alemtemshi said. He pointed out that construction of any roads, buildings, drainage or wall consists of 70 to 80% stones. Therefore stone alone would be around Rs.50 to Rs.200 crore. Similarly, extensive coal mining activities are going on in the coal belt in the foothill areas such as Naginimora, Changki and Tuli. Every day not less than 100 truckloads of coal are been transported out. A truckload of Coal cost around Rs.35,000/- at the local rate. However, only Rs.4.81 crore was reflected while calculating the state GDP.
As per the latest criteria of the Finance Commission, the state cannot avail loan of more than 56.4% of the GDP. Whereas, it was found that the state debts was found to be at 66% of the GDP before the GDP was reviewed. If the GDP was not reviewed, the state plan financing would have landed up a tight spot, he said.
Presently, the major component of the state plan financing consist of around Rs.530 crore as loan component which gives Rs.270 crore to the state plan financing after repaying loans. However with the review of the state GDP, the state is now hopeful of getting Rs.425 crore as plan financing from the loan component.
Earlier, no one was took GDP seriously said Alemtemshi. Now with the ‘discovery’ of bamboo and rubber the loophole in the GDP will stand corrected. Alemtemshi said the ‘discovery’ has made the chief minister take the matter seriously who convened a meeting of all the ministers and parliamentary secretaries.
Now everybody is conscious on the importance of GSDP and GDP, he added.

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