State

Govt strangling economic growth: NPCC

DIMAPUR, SEP 28 (NPN) | Publish Date: 9/28/2019 11:17:48 AM IST

Nagaland Pradesh Congress Committee (NPCC) has squarely held the state government responsible for “strangling the growth of economy in the state” and said that the real growth of economy was the standard of living of the masses and “not just a few with empires.”

In a press release, NPCC president K Therie pointed out that there were two ways of funding the growth of economy—state budget through finance commission award and state’s own resources and the other was funding the private sector through banks and other financial institutions (FIs).
While the state budget during the current financial year was Rs.18, 301 crore, Therie said the budget did not percolate down to the districts and divisions anymore alleging that they have been centralized and were being drawn at Kohima and Dimapur treasuries.
On the other hand, he said the state government has blocked all banks and other FIs from lending to private sector by rejecting the application of SARFAESI Act 2002 on the plea that it would infringe on the provisions of Art.371 (A).
Therie said such attitude of the government, banks and other FIs has strangled the economic growth in the state. 
Seeking review of state government’s stand that SARFAESI Act conflicts with Art.371(A), Therie expressed the view that objective of SARFAESI Act was only to shorten the procedure of possessing the securities by empowering banks and other FIs and to avoid long procedure of debt recovery through debt tribunal courts. 
He said if SARFAESI Act was read with the Nagaland Land & Revenue Regulation Act of 1978 as amended upto date for implementation in matters of transfer of land, there was nothing to conflict with Art.371(A) as long as transfer of land was ensured to indigenous inhabitants of Nagaland only. He said state government may require to issue a simple directive to banks and other FIs accordingly. 
If any dispute arose, he said it should be resolved in meetings between government, banks and other FIs, adding that there was no reason why the matter should stand locked.
The other stumbling block for private sector, he said was that banks and other FIs accept securities from cadastral areas only. He said the state has declared municipal and town councils with the objective to declare them as cadastral areas so as to open the doors of banks and other FIs for lending. Therie said it was high time the government changed its attitude and declare all municipal and town council areas as cadastral areas. He said this action would improve the flow of lending from banks and other FIs to entrepreneurs, small, medium and major industries, student and housing loans etc.
Further, he said that the economy was arm-twisted and squeezed by rampant, random and uncontrolled illegal taxation and collection of commissions at source by ministers and bureaucrats. He said some departments were even collecting taxes at check gates as exposed by Public Action Committee (PAC). “There is total failure in controlling and planning for funding,” NPCC chief alleged, adding that the present stance adopted by government was anti people and anti-economic growth.

-Tags:#NPCC

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