Spl. Correspondent NEW DELHI, FEB 3 (NPN): The 15 Finance Commission (15 FC) in its report ‘Finance Commission in COVID times’ (Vol IV) mentioned that Nagaland had the second highest debt in the country. Though the State’s Debt/GSDP had reduced from 55.5% in 2011–12 to 42.7 in 2018–19, 15 FC said that it was still much higher than the National Health Education Standards (NEHS) average of 29.61%.
It pointed out that debt should be consolidated in line with the new FRBM Act and the recommendations of FC-XV.
Further, the commission also noted that the State needed to restructure and rationalise its expenditure priorities. The committed expenditure (including GIA Salary) of Nagaland was 67.3% of its TRE in 2018–19 (all States average 50.6%), on the other hand, capital expenditure in Nagaland declined between 2011–12 and 2018–19, both as a percentage of GSDP (from 10.3% to 5.9%) and total expenditure (20.4% to 12.8%).
It said that the State need to take measures to reduce burden of committed expenditure to free up resources for development expenditure.
At the same time, the 15 FC said that the State also needed to reduce its infrastructure deficit by increasing capital expenditure and finding alternate sources of funding like PPP.
As per the Ranking in NITI Aayog’s Sustainable Development Goals Index (2019), Nagaland was placed 19th out of 29 States. The State needs to ensure that benefits of economic growth trickle down to all sections of society, the report stated.
Recommendations
The 15th Finance Commission (XVFC) has recommended Rs. Rs. 21249 crore as post-devolution revenue deficit/surplus (grants in aid for revenue deficit) for the period 2021-26. As per the recommendations the post-devolution revenue deficit will be covered for the following period– Rs. 4557 crore (2021-22), Rs. 4530 crore (2022-23), Rs. 4447 crore (2023-24), Rs. 4068 crore (2024-25) and Rs. 3647 (2025-26).
Similarly, 15 FC also recommended the pre-devolution revenue deficit for the period- Rs. 8304 crore (2021-22) Rs. 8699 crore (2022-23), Rs. 9138 (2023-24), Rs. 9397 (2024-25 and Rs. Rs. 9750 crore (2025-26). The 15 FC has recommended Total Transfers for Nagaland amounting to Rs. 47812 crore under various heads. (See table)
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