Nagaland’s finance, accounting mechanisms cautioned about ‘pressure’

Our Correspondent
KOHIMA, JULY 10

Adviser for Treasuries & Accounts, Dr. TM Lotha today told officers of the state finance and accounts service to be very thorough about financial rules and not succumb to any pressure so as to bring about a fiscal discipline to Nagaland.
Referring to the finance and accounts service as the core and the main organ for the running of the government, he urged upon the service officers to maintain transparency and deliver efficient service to the people. The legislator was addressing the inaugural session of the 14th general conference of the Nagaland Finance & Accounts Service Association (NFASA) held at the Directorate of Treasuries & Accounts, Kohima on Friday.Dr. TM Lotha also reminded the gathering of the recent launching of computerization of Treasuries & Accounts by the Chief Minister with a proposal to mechanize the whole treasury of the state. This, he said, was done with the objective to provide efficient, smooth and transparent service to the people. Stating that the computer age has revolutionized and is changing the entire working system in government departments, he asked the officers to get themselves acquainted and update themselves with computer knowledge.
He highlighted several issues that are currently faced by the department which, he feels, need immediate attention. These include District Treasury Offices that are being run with poor facilities such as old and eroding furniture, not enough computers, no proper security, old and outdated vehicles, while most of the sub-treasury offices are being run on rented buildings etc. He also expressed concern that the training centre in Dimapur, where officers and staff in the rank of JAA/AA/JDA and accountants from other departments are supposed to be trained, is in a “pitiable condition” along with an acute shortage of faculty. Acknowledging that the department has very little or no avenue to address these issues, he hoped that they will be taken up during the current budget.
Speaking on the occasion as the guest of honour, state Finance Commissioner & Principal Secretary, Temjen Toy underscored the need to upgrade and update one’s knowledge to keep pace with the fast changing world. He lamented that many government officers seem to have fallen in a state of inertia and are inactive, not attempting to keep pace with the changing times. “This is actually a very sad state of affairs,” he said.
Emphasizing that the Treasuries & Accounts has a large role to play as it has its presence in all the departments, the bureaucrat called upon the officers not only to streamline the transactions that take place in the state but also act as a watchdog to check on various fronts where unprincipled practices are being attempted.
Toy also remarked on the need to relook at the existing structure of the department and called upon the officers to deliberate on how to integrate the structure so that they can become better oriented. To this end, he asked the principal director to initiate for a cadre review at the earliest.
The Chief Minister, TR Zeliang also conveyed a message to the association on the occasion acknowledging that the NFASA members play a critical role in ensuring efficient financial administration and good governance. The message stated that Nagaland is largely dependent on Central transfer of fund mainly because the state’s resource base is insignificant. Although efforts are being put in to improve revenue collection, the Chief Minister outlined that only around 9% of the state’s total expenditure can be met by internal revenue.
Bringing forth the role that the finance and accounts service officers can play in improving the state financial position, Zeliang maintained that the thumb rule is to ensure that all the prescribed rules and procedure are strictly followed so that there is no undue charge on the government and also to see that wasteful expenditure is avoided. Expressing that particular attention should be given to rules relating to acceptance of tenders/quotations and of procurements and supplies, he called for proper classification of charges and accurate accounting.
He also called upon the NFASA officers to strive and understand the rules and procedure required to be followed in the treasuries as well as in other departments including the Works department so that they may discharge their duties more effectively and also be prepared for subsequent posting in other wings of government accounting.
Zeliang mentioned that the Cabinet has discussed the pros and cons of deducting 13% departmental charges on all capital works which is currently being done at source by the finance department at the time of issuing drawal authority. He stated that deduction of 13% departmental or agency charge is to be done by the works divisions that execute the works, however, it was observed that the works divisions often fail to do so at their end and resulted in pilferage of state revenues. This is a failure on the part of the engineers and Divisional Accounts Officers (DAOs) in charge of works divisions, he pointed, and urged for discussion by the association so as to effect improvement.
The Chief Minister also conveyed concern that government servants tend to maintain the status quo and let things continue as usual. He pointed out that there has been a sea change in different aspects of financial management in the past few decades and NFASA members should keep up to date with these challenges. Towards this, he advocated for in-service training and assimilation of new skills and practices specially in the computerisation of Treasuries & Accounts and the Digital India Programme.
Touching upon the importance of internal audit, Zeliang mentioned that along with the computerisation of T&A and the directorate, a new system of internal audit will be conducted in the line of Online Audit, Contemporary Audit and Social Audit which will ensure more transparency in the financial administration of the state. He expressed that audits should be viewed as positive tool to improve the system and not as harassment.
He further called upon the association to bring forth practical and innovative suggestions to improve the financial management system of the state, keeping public welfare as the priority.
Currently, there are 189 officers under the NFASA including the principal director and directorate officials, accounts officers, treasury officers, audit officers, JAOs, STOs and DAOs.