Nagaland has received substantial financial support from the 15th Finance Commission to strengthen its rural local governance institutions and municipalities. Between the fiscal years 2020-21 and 2024-25, the state was allocated Rs 512 crore with varying amounts released each year.
According to data shared by Union Minister Rajiv Ranjan Singh in a written reply to the Rajya Sabha on Wednesday, Nagaland was allocated Rs. 125 crore in 2020-21, Rs 92 crore in 2021-22, Rs 96 crore in 2022-23, Rs 97 crore in 2023-24, and Rs 102 crore in 2024-25.
Further, Nagaland received Rs 125 crore in 2020-21, Rs 92 crore in 2021-22, and Rs 48 crore in 2022-23. The total release during this period stood at Rs 265 crore, with no funds released in the last two fiscal years (2023-24 and 2024-25) as per the available data.
The grants aim to supplement the resources of rural local self-governments, enabling them to provide better services and improve infrastructure at the grassroots level. The 15th Finance Commission allocates funds based primarily on population (90 percent) and area (10 percent), with states distributing the funds internally as per state finance commission recommendations.
This funding is part of a larger nationwide grant of Rs 60,750 crore recommended for rural local bodies for the fiscal year 2020-21 and Rs 2,36,805 crore for 2021-26, reflecting the government’s focus on strengthening local governance.
The 15th Finance Commission, has recommended a total grant of Rs 60,750 crores and Rs. 29,250 crores for the interim period for FY 2020-21 and Rs 2,36,805 crores and Rs 1,21,055 crores for the period 2021-26 for duly constituted Rural Local Bodies and for Urban Local Bodies respectively.
The 15thFinance Commission has also recommended a total grant of Rs 70,051 crores to Local Self Governments to strengthen and plug the critical gaps in the health care system at the primary health care level.
