Kohima, 27 February (MTNews): Chief Minister Rio during his budget speech today shed light on the pressing need for reforms in revenue sectors to bolster the state’s financial resources. A particular area of concern highlighted by Chief Minister is the power sector, where losses have escalated to unsustainable levels.
During the current fiscal year 2023-24, Rio revealed that revenue losses in the Power sector have amounted to a staggering Rs.280 crores, accounting for approximately 47% of the total power purchase cost, which stands at Rs 595 crores. A significant portion of these losses, he said, stemmed from the communitised sector, where revenue collection falls short of actual consumption.
“Consumers in most villages today use equipment and appliances that consume high amounts of power but pay only a fraction of the cost. This has to be corrected to ensure that consumers pay as per actual consumption,” he said.
Chief Minister Rio also announced initiatives to outsource metering and billing activities in the revenue-intensive districts of Kohima, Dimapur, and Chümoukedima. This strategic move aims to tackle chronic problems of poor billing and enhance revenue efficiency. However, Chief Minister Rio expressed concern over citizen opposition to the installation of pre-paid meters in various parts of the state.
Furthermore, Chief Minister Rio underscored the untapped potential of the state’s abundant natural resources, including oil, natural gas, coal, and minerals such as cobalt and high-grade nickel.
“Despite efforts, factors like difficult terrain, poor connectivity, political reasons and land holding systems have prevented tapping of these valuable resources. It is high time we make all possible efforts to harness these valuable resources, for that will bring tremendous economic benefits to our State,” he added.
Highlighting the financial strain caused by high salary and pension expenditure, as well as substantial losses in the Power and Transport sectors, Chief Minister Rio acknowledged recommendations from the Third Nagaland State Finance Commission. These recommendations include reducing the number of Government employees and increasing efficiency of the power and transport sectors.
Further, he said, the state cabinet has approved the Commission’s recommendation of the formula for sharing of revenues with the Urban Local Bodies and Urban Stations, and prescribed the vertical as well as horizontal formula for devolution.
The Chief Minister added that they are contemplating to put in place the e-stamp system to replace the present use of physical stamps to make it more convenient in registering documents and deeds while making it transparent and also ensuring that evasion of stamp duty by undervaluing is checked.
“The issue of online issue of ILP will be further strengthened to make the system more transparent, generate more revenue and enable the Government to monitor the movement of people entering the State,” he added.