15th Finance Commission in Nagaland, meets CM
Our Bureau
KOHIMA, January 9, 2020: The two Members of the Fifteenth Finance Commission – Dr. Ashok Lahiri and Ajay Narayan Jha are in the State on a two-day visit. Jha had earlier visited Nagaland in October 2013 as the then Secretary to the Fourteenth Finance Commission.
The Members arrived at Kohima from Imphal by helicopter on the morning of 8th January 2020 in continuation of the earlier visit of the Fifteenth Finance Commission. They are the only full time Members of the Commission who had not yet visited the State. The earlier visit of the Commission to the State during November 2018 included the Chairman, NK Singh and Member Dr Anoop Singh only. On arrival the Members made a brief visit to the Kohima War Cemetery and the State Museum. In the afternoon the Members interacted with the Chief Minister, Minister Planning and officials of the State Government led by the Chief Secretary.
The Chief Minister welcomed the two Members and thanked them for visiting the State and said that the State had many expectations from the Commission. He expressed problems that the State has to face due to its remote location, and the financial handicap following the change in the system of financing after the year 1989 when the funding arrangement put in place under the 16 Point Agreement was discontinued. He also raised some issues of concern to the State such as the need for help in setting up Chiethu airport for which land had already been acquired, the importance of the foothill road for the economic development of the State. He also briefed the Members of how the manufacturing sector has been heavily affected by the ban imposed by the Supreme Court of India on felling of timber.
The Chief Minister also highlighted problems caused due to non-completion of road projects in the State despite the passage of many years, causing untold problems to the people of the State. The Minister Planning raised concerns over the slow rate of development and the need for funds for maintenance of assets. He also expressed the problem faced by the State due to discontinuation of SPA funding, resulting in liabilities of more than Rs. 500 crore.
The two Members observed that the State has high revenue expenditure compared to other North Eastern States, that the level of AT&C losses in the power sector is very high, and that the entire North East was lagging behind in infrastructure development. Other issues discussed included Direct Benefits Transfer, PFMS, banking coverage, low CD ratio, low resource base, high revenue expenditure and decline in capital expenditure.
Dr. Ashok Lahiri emphasized the need to focus on the agriculture sector, to harvest the abundant rainfall in the region, and to produce more so as to reduce dependence on commodities being purchased from outside the State. He also pointed out to the need to become more self-sufficient in fish and meat products. Discussions also took place on the functioning of Local Bodies in the State, including communitisation of public institutions.