Kohima, July 30 (MTNews): Nagaland Pradesh Congress Committee (NPCC) president K Therie said today that there is serious misunderstanding in the minds of the people in regard to funding of the State. He said that states receive their due share of funds from the central government and that the center cannot be blamed if the state government is misusing the funds.
Therie said that funding of the State is through the Constitution of India and that under Article 280, the Finance Commission is constituted by the President of India under whose recommendations the net proceeds of taxes are divided between the Centre and States or Union Territories.
“In the present situation, 42% of the total net proceeds are transferred to the states and UTs. These funds are released on the 1st day of every month to the States from Nagpur and nobody can stop the flow of funds awarded by the FC,” Therie maintained. “The FC makes recommendations to the President on the measures needed to augment a state’s resources to supplement the panchayats and municipalities on the basis of the recommendations of the FC of the State. Article 275 assures special provisions for Tribal developments,” he added.
In addition to normal FC awards, Therie said that NE States are given funds from the North Eastern Council. “States also have shares from Every Central Development Department and no department can deprive a state’s due shares. This is how regional governments and non-NDA governments are surviving and they are doing even better,” he added.
Nagaland State has taken huge loans and debt servicing which is deducted at source and is eating up huge non-plan resources, Therie said. He alleged that loans are misused and have failed to generate resources.
“Our resources continue to be stagnant at around 650-700 crore annually. Special non-plan and plan assistance of Rs 365 crore was given to Nagaland during Vajpayee’s time to make good deficits and pay liabilities to over 70 departments. Rs 736 crore non-plan and Rs 326 crore plan assistance were given during Dr Manmohan Singh’s time to meet 6th ROP deficits,” he said.
However, during Prime Minister Narendra Modi’s time, Therie said “we have not heard of any additional funds being given. Maybe if given, it may have been looted. Even the state’s share of GST was not released on time,” he alleged.
Delay of salary payments and payments to contractors is caused by mismanagement and diversion of funds, Therie said. “There is no reason to be a slave of the Centre. We are the 16th Federal State in the Union of India and not beggars,” he stated.