Nagaland wish list submitted to 15th FC

Nagaland wish list submitted to 15th FC
Nand Kishore Singh being received by Y. Patton and other, Tuesday.
By Nagaland Post | Publish Date: 11/27/2018 11:42:51 AM IST


KOHIMA, NOV 27 (NPN): Nagaland has submitted a memorandum to Fifteenth Finance Commission (FFC) reflecting the impact due to the change of funding in the previous years and a proposal for the next five years – 2020-21 to 2024-25. A team of 12 members led by its chairman Nand Kishore Singh arrived here on Tuesday afternoon on a three-day visit.

State finance secretary Kikheto Sema informed media persons Monday evening that the memorandum for 2020-21 to 2024-25 was submitted on August 16 and supplementary memorandum was under preparation for submission during the FC’s visit. He said the FC members would be meeting State government officials and private agencies during their visit and leave for Imphal on November 29.

Meanwhile, the memorandum projected Rs 3,535.50 crore for the five-year period for repair and maintenance; Rs 1,115.59 crore for four hydro projects and Rs 4,392.93 for critical infrastructural development. 

Impact on changing of funds: The memorandum pointed out that the state’s finances suffered due to change in funding pattern by the 9th FC during 1989-90 in which grant of fund was discontinued, instead of providing liberal assistance to cover Balance from Current Revenue (BCR) gap through Additional Central Plan Assistance (ACPA). 

It was also pointed out that due to the change in funding pattern from 1989-90 onwards, the State faced problems even in releasing monthly pay and allowances to government employees even as the government was unable to undertake developmental activities, which affected the overall socio-economic condition of the State. 

During 2003, a one-time special grant of Rs 365 crore was provided by then prime minister Atal Bihari Vajpayee to wipe out accumulated budgetary deficit which was a great relief for the State. 

However, it said this one-time grant was only for a short period and the deficit started mounting because the state had to create avenues for providing jobs in the absence of other avenues since the formation of Nagaland.

State spends 58% on salary and pension: The memorandum submitted to the FFC mentioned that since the number of government employee was very high, the annual growth rate of salary and pension was equally high. It said these two components alone consumed about 58% of the total revenue expenditure. 

Also, it stated that about 67% of the revenue expenditure was spent on account of salary, wage, pension and interest payments and thus very little fund was left for maintenance of infrastructural assets and other developments activities. 

Impact of 13th FC: Refreshing the impact of 13th FC, the State government pointed out that the FC had adopted a normative approach of awarding grant to all the States without considering that Nagaland was the only State created out of political exigency. It pointed out that the special-category State was not given any special treatment as the same yardstick was applied to all the States, following which Nagaland suffered a lot during the 13th FC period.

Impact of 14th FC: The memorandum maintained that the 14th FC took into account the adverse awards of the 13th FC and recommended considerably better and realistic financing for all the special category States.  It pointed out that though the increase of 10% tax devolution raised the share of states from 32% to 42%, it made little difference for revenue deficit states like Nagaland.

While appreciating the 14th FC for considering considerably better revenue deficit grant to Nagaland, the State still continued to have a post devolution deficit due to the huge burden. 

Further, the memorandum explained that the percentage of distribution of share of Central taxes was not too favourable to Nagaland, as compared with some other North-eastern States. 

The State government appealed to FFC to distribute State share of Central taxes equitably to all the North-eastern States on need basis, with special consideration for Nagaland, taking into account the provision of point 11, clauses 1& 2 of the 16-point Agreement. 

Rs 3,535.50 for repair and maintenance: State government has urged the FFC to consider granting Rs 3,535.50 crore for repair and maintenance of infrastructural assets during the period 2020-21 to 2024-25. 

The memorandum submitted to the FC stated that the amount had not reflected the statement relating to State finance under statements 1-4.

Requirement of critical infrastructure: The State government asserted that Nagaland did not have any national or regional institution worth mentioning, neither medical nor engineering college and that there was a huge gap in critical infrastructure that was required to cater to the needs of the people. 

Out of the many requirements, the Stated urged the 15th FC to consider and grant the following projects: 

New Raj Bhavan, at Thizama, Kohima with a required amount of Rs 400 crore with start-of-the-art facilities on 150-acre land (currently 5.5 acres) and said the State government envisaged to complete the project within the 15th FC period. 

Housing: Out of the total 6,058 government buildings (offices and quarters) constructed since the State’s inception till date, 1,142 houses were more than 50 years old and beyond repair, thus requiring new construction. Towards this, out of the 1,142 buildings, the government proposed to replace 25% (i.e. 285) with new buildings at a cost of Rs 1.50 crore per building that would cost about Rs 427.50 crore. 

General administration buildings: Out of the 12 districts, seven had constructed new office buildings for deputy commissioners (DCs) and the DCs of the remaining five districts – including Tuensang, Zunheboto, Kiphire and Wokha – were functioning from old dilapidated buildings, while there was similar requirement for the newly-created district of Noklak. 

In this regard, the government has estimated Rs 100 crore for construction of five DC offices at the rate of Rs 20 crore per office.   

Also, it mentioned that the five districts also required new offices for superintendents of police (SP), for which an amount of Rs 50 crore would be required (at the rate of Rs 10 crore per office. 

Further, the memorandum proposed Rs 55 crore for construction of G+1 flat type building consisting of six flats (3BHK) quarters for all India service cadres like IAS, IPS and IFoS (excluding DC & SP) at the rate of Rs 5 crore per district.

School: The State government proposed Rs 720 crore for construction of five high schools in each of the 12 districts at the rate of Rs 12 crore per school, stating that out of the 1,913 government schools, around 15 of them were more than 50 years old. 

Hospitals: Rs 100 crore was proposed for constructing new district hospitals at the rate of Rs 25 crore per hospital in Tuensang, Wokha, Zunheboto and Longleng. 

New High Court complex: After Rs 256.55 crore was revised, an amount of Rs 61.71 crore was released and Rs 194.84 crore was required for completion of the new high court complex in Kohima. In this regard, the State government urged the 15th FC to consider providing grant. 

Higher education: Rs 260 crore was proposed for 26 new constructions – one higher secondary school each in five districts, two higher secondary schools in seven districts and one college each in seven districts. The project was estimated at the rate of Rs 10 crore for each project. 

Tourism: The government proposed Rs 120 crore for two eco-tourism centres in each district at the rate of Rs 5 crore per centre.  

Civil aviation: Rs 90 crore was proposed for one small landing strip in 12 districts at the rate of Rs 7.50 crore per district. 

Fire stations: The government proposed Rs 60 crore for construction of five fire stations in five districts and additional seven new stations in the other seven districts at the rate of Rs 5 crore per fire station. 

Village guard: The government projected an amount of Rs 5 crore annually for infrastructure development like constructing barracks and camps for village guards. 

DUDA: The government requested the 15th FC to grant Rs 50 crore annually for five years to acknowledge the development deficits of the Eastern Nagaland districts of Tuensang, Mon, Longleng, Kiphire and Noklak on a par with other districts. 

Power generation projects: Rs 1,115.59 was proposed for consideration of four hydro projects – 24-mw Zungki Hydro Electricity Project below Phelungre village in Kiphire district at a cost of Rs 317.81 crore, 42-mw Lower Tizu Hydro Electricity project at Moya and Phor in Kiphire district at a cost of Rs 456.86 crore, 24-mw Doyang SHEP Stage-III at Philimi in Zunheboto district at a cost of 241.22 crore and 10-mw Doyang SHEP Stage V at Philimi village in Zunheboto district at a cost of Rs 99.70 crore. 

Establishment of 4th NAP Battalion HQ, Kohima: The government proposed Rs 425 crore for establishment of new 4th NAP Bn HQ (including cost of land) as the current location was proposed for construction of new Raj Bhavan complex.

Request for one time grant to waive off deficit
An amount of total accumulated deficits as on March 2018 including liabilities mentioned in the recommendation was Rs. 2864.18 Crore. (Rs. 1607.73 crore budget deficit, Rs. 1256.45 for development deficit, Rs. 92.50 crore liabilities for non release of state specific, Rs. 300 crore liabilities for non release of Eastern Nagaland and Rs. 863.95 liabilities for 40 SPA projects )
 Towards this the state government had requested the FC-XV to recommend one time grant to waive both budgetary deficit as well as liabilities amounting to Rs. 2864.18 crore.
Budgetary deficit of Nagaland since 2010
Sl. No Year Budget estimate Revised Estimate 
1. 2010-2011 -603.64 -601.44
2. 2011-2012 -602.30 -685.52
3. 2012-2013 -695.59 -891.52
4. 2013-2014 -899.45 -891.73
5. 2014-2015 -1252.45 -1252.85
6. 2015-2016 -1426.29 -1419.19
7. 2016-2017 -1194.35 -1657.88
8. 2017-2018 -1630.67 -1607.73
9 2018-2019 -1630.67

-Tags:#15th FC

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