Appointment ban has not reduced the state’s budget deficit

 

Dimapur, 20 January (MTNews): Despite the government’s restriction on government employee recruitment since 2020, the ban has not reduced the state’s budget deficit, Lok Sabha MP Tokheho Yepthomi said on Friday evening in Dimapur during a press conference on various challenges hurting the state’s economy.

 

“The government has banned appointment of government employees for the last three years, the state budget deficit has still not reduced,” he reiterated.
“The biggest challenge that the people of Nagaland face today are youth (un)employment,” he said.

 

He mentioned that Government jobs have reached a stagnation point and that the state has the largest percentage of government employees in relation to population.
He claimed that the unemployed youths are finding “employment” in various ways by indulging in various anti-social activities.

 

“The unemployment rate is the highest in the country,” he said, citing 50,000 applicants for a few hundred vacancies advertised by the government.

 

“For any society, the problem of unemployment is the most critical pertinent issue that has an overbearing effect,” he added, stating that over 7000 students graduate from class 12 each year, and that the percentage is increasing.

 

“It also indicates that the percentage of unemployed will continue to rise,” he said, adding that youngsters who work outside the state do not choose those jobs as a permanent career option, but instead, eventually return to the state.

 

“The state is unable to employ a large percentage of educated and uneducated unemployed. If the issue of unemployment is not put to arrest sooner or later, the economic scenario looks blink,” he stated.

 

 

Deficit in power department has greatly contributed to the state budget

 

Speaking of efficient power generation, the MP stated that the power sector is another sector harming the state’s financial economy due to the state’s inability to create its own power.

 

“The state government is acquiring power from various sources worth hundreds of crores,” he said, adding that “inability of the department to collect revenue from consumers to even bring their purchasing cost” is one of the most serious issues.

 

“The deficit of the power department has tremendously contributed to the state budget deficit,” he stated, adding that if the power department issue is resolved, the state’s economy will improve significantly.

 

 

Taxation by various groups is harming the state’s economy

The MP also emphasized the importance of a timely resolution to the vexed Naga political issue.

“The impact of taxing by multiple groups is felt by businesses,” he said, adding that while it may not have a big immediate impact on an individual level, over time it will hurt the state’s macro economy.

 

Despite release of funds, Medical College incomplete

The MP went on to explain how medical colleges and a stronger health care system might generate revenue for the state.

 

“Nagaland is the only state in the country without a medical college,” he said, adding that the GoI has granted funds to establish two medical colleges, one in Kohima and the other in Mon.

 

“The overall approval cost of the medical college in Kohima was Rs. 189 crore, of which 170.10 crore has already been released,” he stated, explaining how construction of the college began in 2014 but is still ongoing.

 

“The entire approved cost of the Mon medical college is Rs. 325 crore, with the central contribution being Rs. 295.50 crore. The centre has already released 242.59 crore,” he stated, lamenting that the construction tenure has not been called yet.

 

“The lack of medical colleges and health care has caused untold hardships to many Nagas because they have had to travel to other states,” he said, adding that completing those colleges would not only strengthen the state’s health care but would also open up avenues for employment, contributing to the economy.

 

Nagaland is losing Rs 5 crores daily

The MP further stated that the Assam state has earned 1,899 crores in the “said disputed oil field” during the last five years.

“Nagaland is losing approximately Rs 5 crores daily and Rs 1,825 crores annually,” he said, adding that oil and natural gas development must be a top priority for Nagaland and that it could become the backbone of the economy.

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