Serious misunderstanding about funding of the state –Therie - Eastern Mirror
Wednesday, March 22, 2023

Serious misunderstanding about funding of the state –Therie

By EMN Updated: Jul 30, 2022 9:46 pm

Dimapur, July 30 (EMN): Nagaland Pradesh Congress Committee (NPCC) president, K Therie, has claimed existence of serious misunderstanding in the minds of the people in regard to funding of the state.

Therie explained that under Article 280, the Finance Commission (FC) is constituted by the President of India, where the net proceeds of taxes are divided between the centre and states or union territories on the recommendations of the FC. In the present situation, he stated that 42% of the total net proceeds are transferred to the states and UTs and released on the 1st day of every month to the states from Nagpur adding nobody can stop the flow of funds awarded by the FC.

He added that Article 275 assured special provisions for tribal developments.

In addition to normal FC awards, Therie stated that NE states are given funds from NEC. He said states also have shares from every central development department and no department can deprive a state’s due shares.

“Nagaland state has taken huge loans and debt servicing, which is deducted at source, is eating up huge non-plan resources. Loans are misused and have failed to generate resources,” Therie alleged.

He added that Nagaland resources continue to be stagnant at around 650-700 crores annually. He stated that special non-plan and plan assistance of INR 365 crore was given to Nagaland during Vajpayee’s time to make good deficits and pay liabilities to over 70 departments. He went on to state that INR 736 crore non-plan and INR 326 crore plan were given during Dr. Manmohan Singh’s time to meet 6th ROP deficits.

“During PM Modi’s time we have not heard of any additional funds being given. Maybe if given, it may have been looted. Even the state’s share of GST was not released on time,” Therie said.

He has attributed mismanagement for delay of salary payments and not the FC that has failed to assess the need.

“Delay of payments to contractors is caused by diversion of funds. We cannot blame the central government if the state is misusing. There is no reason to be a slave of the centre. We are the 16th federal state in the union of India and not beggars,” Therie added.

By EMN Updated: Jul 30, 2022 9:46:51 pm