Thursday, August 18, 2022

Therie expounds on financial crisis

Nagaland Pradesh Congress Committee (NPCC) president K.Therie maintained that there was some serious misunderstanding about the funding to Nagaland which has been blamed on the government of India.
In a detailed explanation about how funds are awarded, Therie said funds were constitutionally awarded by the Finance Commission, by the president of India under Article 280. Net proceeds of taxes are divided between centre or states of union territories as per the recommendation of the FC.
Presently, he said 42% of net proceeds are transferred to states and UTs and released on the first of every month “to the states from Nagpur” adding nobody could stop funds awarded by FC.
He said first, FC makes recommendations to the president to augment the resources of states to supplement panchayats and municipalities and where Article 271 ensures special provisions for tribal development.
In addition to FC awards, he said north east states are also given funds from North East Council (NEC) besides share of funds from central development department and that no state could be deprived of its due share. According to Therie this was how funding is done and reason why regional governments and non-NDA governments were surviving and doing better.
However, with regard to Nagaland, Therie said the government had taken huge loans including debt servicing that are then deducted at source and eating up huge Non-Plan resources. He also said loans taken are being misused and so fail to generate resources and that was the reason why there is resource crunch of around Rs. 650 to Rs. 700 crore annually.
He also said during prime minister Vajpayee’s tenure, Nagaland was provided grant of Rs.365 crore to tide over its deficit and liabilities of over 70 departments.
Even during prime minister Dr. Manmohan Singh’s tenure, Rs.736 crore under No-Plan and Rs.326 crore under Plan fund were awarded to Nagaland to meet requirement for implementing the 6th RoP.
He said in the current prime minister Narendra Modi’s government, it was not known if additional funds were given where even the state’s share of GST was not being released on time.
Therie said release of salaries are being delayed due to mismanagement but it is not that FC has failed to assess the requirement. Therie said payment to contractors was due to diversion of funds and for which the central government cannot be blamed.
Therie concluded that there was therefore no reason to be a “slave of the Centre” since Nagaland is not a beggar state but the 16th state of India.


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