EMN
DIMAPUR, OCTOBER 6
A PRESS release issued by Secretary of Finance Commission, AN Jha said the State Chief Minister has highlighted the steady deterioration of the financial position of the State over the past few years. The Chief Minister has also apprised the delegation on the challenges faced by the State government primarily due to lack of connectivity and infrastructure, which have caused difficulties in delivering good governance at the grass root level. The release stated that the Chief Minister has requested that the Finance Commission considers special status of the state and that the intention of the State was not to remain perpetually frozen in the Special category bracket.
The Secretary Mr. Jha added that efforts are being initiated in the form of State Special Development Zones to be further connected by new railways and super highways to promote the process of urbanization and industrialization. These are measures towards economic growth and employment generation and indicate steps towards change and progress.
The Chief Minister has also sought a review of the normative approach to factor the special requirements of states like Nagaland. He suggested that the Central government could give an impetus to infusion of investments for building up technical infrastructure and facilities for the benefit of the State as a whole. He emphasized that funding for the maintenance of infrastructure assets including roads was a major constraint and requested special allocation through the Finance Commission. The State government on its part had expressed inability to increase revenue even despite its efforts to reduce the dependence because of the low revenue base. The Commission has been requested to also look into the proposal of the State for the enhancement of professional tax for making appropriate recommendation to the Central government. The State government has also submitted a Memorandum and made a detailed presentation on the finances of the State government, its projection for the award period and gave their views on some of the terms of reference of the Commission. Presentations were also made on Macro Economic situation of the State highlighting the achievements of the State and demands made to the Finance Commission. Request for a supplementary memorandum to factor in the impact of the 7th Pay Commission was requested by the State.
Chairman of Finance Commission, while appreciating the significant issues raised by the State government, said the Commission has the responsibility to handle twin balances of vertical and horizontal devolutions on the one hand and the balance between the General and the Special category States on the other. The effort of the Commission, it was mentioned, would also be to arrive at a good balance between change and continuity to get the optimum benefits.
