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:: Press Releases ::
Sunday, October 6, 2013

1. Dr. Y.V. Reddy, Chairman, Prof. Abhijit Sen, Ms. Sushama Nath, Dr. M. Govinda Rao and Dr. Sudipto Mundle, Members of the Fourteenth Finance Commission, Sh. A.N. Jha, Secretary and other officials carried out the State visit of Nagaland from 4th to 6th October, 2013 to hold consultations with the State Government and key stakeholders.

2. The Commission met with the Honourable Chief Minister, his Cabinet Colleagues, representatives of local bodies and the political parties and senior officers of the State Government, for discussions.

3. The Chief Minister of Nagaland welcomed the Chairman and Members of Fourteenth Finance Commission to Nagaland and highlighted the steady deterioration of the financial position of the State over the past few years. The challenges face by the State Government primarily due to lack of connectivity and infrastructure it was mentioned, have cause difficulties in delivering good governance at the grass root level. While requesting to look into the special position and needs of the Nagaland, it was mentioned that the intention of the State was not to remain perpetually frozen in the Special category bracket. The 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 measures towards economic growth and employment generation it was indicated, were steps towards change and progress.

4. The Chief Minister 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. It was emphasized that funding for the maintenance of infrastructure assets including roads was a major constraint and requested for special allocation for this through the Finance Commission. The State on its part, it was mentioned even while making all efforts to increase its revenues to reduce the dependence could not achieve much, on account of the low revenue base. The Commission was requested to look into the proposal of the State for the enhancement of Profession Tax, for making appropriate recommendation to the Central Government.

5. The State Government submitted their 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. The Commission also interacted with representatives of political parties, Panchayati Raj Institutions, Urban local bodies and Trade and Industry Associations.

6. The Chairman, Finance Commission while appreciating the significant issues raised by the State Government, mentioned that 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. Other Members also appreciated the unique and special socio-economic position of Nagaland, and sought certain further clarifications/information to make an informed decision while making its recommendations.

7. The Commission places on record its appreciation to the Chief Minister and State Government for the cooperation and support extended to the Commission and assures that the issues raised will receive due attention in the deliberation of the Commission. The Commission also looks forward to continuing interaction with the State Government.

8. The Commission will finalize its recommendations by October 2014 after completing its discussions with all the State Governments, the Government of India and relevant stake holders.

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