The Nagaland government recently announced its budget proposal for the fiscal year 2024-25, projecting a reduced yet substantial Rs 905.78 crore deficit.
Chief Minister Rio has consistently advocated for reforms, particularly in sectors such as power, and for reducing employment in government sectors, as the state grapples with a high rate of youth unemployment and lack of revenue receipt.
Acknowledging the financial strain caused by high salary and pension expenditures, Chief Minister Rio highlighted recommendations from the Third Nagaland State Finance Commission during the budget session. These recommendations include reducing the number of government employees and enhancing the efficiency of the power and transport sectors. However, the advocacy for reforms has drawn contrasting views.
Rising Peoples’ Party President Joel Naga contends that the government’s rhetoric on ‘reducing the number of government employees’ stands in stark contrast to its actions on the ground. For instance, he pointed out that while the reform was being advocated, the Nagaland Legislative Assembly during the ongoing budget session passed a bill on the regularization of employees in group C and D posts appointed before June 6, 2016.
“That’s about thousands of employees,” Joel noted. “Also, the PHED department appointed more than 800 posts bypassing P&AR. Every creation of the post has to go through P&AR whereby PIMS will have to be issued. Both the PHED & Power department has been given the power to appoint employees bypassing P&AR. This is unprecedented,” Joel shared.
He also mentioned an upcoming open recruitment drive by the police department, which, while commendable because ‘it is not backdoor,’ raises concerns about the actual reduction of government jobs. He said this while strongly agreeing that government jobs are not sustainable and there is a need for diversification.
Number of beneficiaries under CM MicroFinance initiative ‘still too less’
The Nagaland government has placed a strong emphasis on entrepreneurship initiatives as part of its strategy to address unemployment. Initiatives such as the Startup Policy 2019 and the Chief Minister’s Micro Finance Initiative (CMMFI) in 2022 were launched to foster entrepreneurship within the state. In the recent budget session, Chief Minister Rio disclosed that under the CMMFI, a total of 688 loans had been approved, with Rs. 3,000 lakhs (Rs 30 Cr) allocated for FY 2024-25.
However, Joel remarked that the number of loans granted ‘is still too less’ while the same CMMFI budget is only Rs 30 crore this time. “In a district like Tseminyu, till now only 11 beneficiaries have been selected.That is a cause of concern,” he said, adding, “Most are selected on the basis of their linkage with their concerned MLA, Ministers, or Advisors. Selection is not fair,” he pointed out.
However, this shift is notable considering a report by Nagaland Economic Survey 2022-23 (Published in Mokokchung Times in May 2023), which highlighted limited activity under the CMMFI in only four districts of the state – Dimapur, Kohima, Phek, and Wokha while the remaining 12 districts in the state, including Mokokchung, had “Nil” number of applicants or beneficiaries, “Nil” amount approved, and “Nil” amount sanctioned.
Regarding ‘Self-employment’ Joel believes that it won’t take place in the face of power crises, and therefore, viewed that the government must seriously consider investing in hydropower generation.
He states, “With regular electricity, entrepreneurs can expand into incubation ventures such as setting up hatcheries. Without electricity, there can be no hatcheries or furniture-making units. Hence, there is a critical need for round-the-clock electricity supply.”
Nagaland needs a policy for Agri and allied sectors
With 71% of its population dependent on agriculture, about Rs 42 crore was allocated to the Agri and Allied sector for FY 2024-25. However, Nagaland grapples with a concerning trend of increased rural-to-urban migration (particularly to Kohima and Dimapur). According to the Statistical Handbook of Nagaland 2012, the state has witnessed an 11-fold surge in its urban population since its inception in 1963.
As reported in Mokokchung Times earlier, a study by Dr Zarenthung Ezung on migration issues in Nagaland (2020) sheds light on the root causes of this migration. Ezung’s research identifies a significant labor shortage in rural areas, leading to diminished agricultural output and a reliance on goods from other states to meet demand.
This shortage, Ezung argues, is because agricultural entrepreneurship has not taken its root among the villagers due to bad and insufficient physical infrastructure as well as inadequate education regarding commercialization of agriculture products.
Echoing similar concerns, Joel emphasized to Mokokchung Times the urgent need for government policies targeting the Agriculture and Allied sectors. He stressed the importance of ‘incentivizing farmers’ to encourage youth to return to rural areas and engage in farming activities.
“The government so far has no concrete policy for Agri and Allied sectors and incentives are totally missing. A policy is needed so that educated unemployed find the need to go back to villages for agriculture,” said Joel.
‘Hornbill will mostly benefit big hotels and drivers’
The Nagaland government has also long prioritized the development of its tourism sector as a key contributor to employment and revenue growth within the state and has allocated Rs 1,150.50 lakhs this FY. In 2001, Nagaland launched its Tourism Policy 2001, aiming to establish the sector as a primary source of employment. Fast forward to 2024, the Nagaland Cabinet reportedly approved the Nagaland Tourism Policy 2023 which plans to integrate Medical Tourism.
Tourism Minister, Temjen Imna Along during the ongoing budget session said that the Hornbill Festival in 2023, recorded revenue of Rs 17 lakh 11,980 to the state exchequer out of the allocated budget of Rs 5.5 crore for the festival. He emphasized that ‘direct revenue’ was not the primary focus and that the government’s investment yields substantial returns for economic partners, stimulating growth within the local economy.
Reacting to this, Joel said, “There’s nothing wrong with the Hornbill Festival. Hornbill gives you the picture but unfortunately the common people will not benefit much. Hornbill will benefit mostly the big hotels and drivers”.
He suggests that the government can identify cultural hotspots across districts for inclusivity. “The government is now conceptualizing the Mini Hornbill Festival, which is basically a tribal festival like Ngada, Moatsü, Sekrenyi, and so on but not many people will come. So, what the government should do is identify cultural hotspots across districts like Longwa in Mon, places like Longtrok in Mokokchung, etc., and develop those areas. Later on, crafting, handloom, and resources like the Tizu River can be identified,” he added.
“We do not have a concrete Sports Policy”
As per the sector-wise allocation of funds in the FY 2024-25 Nagaland budget, the Department of Youth Resources and Sports (DYRS) has been provided Rs 1,055 lakh for core activities, including capacity building for youth and sports personnel, tournaments, and sports infrastructure. The allocation also includes funds for music and arts.
While appreciating the government’s effort on conducting Nagaland Olympics, Joel lamented that the state does not yet have a ‘concrete sports policy’.
“Hosting Olympics is good for optics but if there are no incentives or any policy on the matter; the athletes are just wasting their time. We should have a policy in such a manner that they are given incentives and are absorbed in the government. Look at the likes of Manipur and the policy they have. The last we had anyone absorbed by the government was Chekrovolu Swuro in archery,” he said, adding that a Sports policy will be a welcome move.