The state has also experienced financial crisis due to excess departments and establishments with extra government employees.
By Imna Longchar, TFM Nagaland Correspondent
Nagaland Agriculture Production commissioner (APC), Y Kikheto Sema Saturday said that the financial status in the State since its formation has suffered due to the prolonged conflict and the Naga political issue.
Kikheto Sema was speaking as a resource person at the one day workshop on “Budget Simplified” organized by the Kohima Press Club (KPC) at the Heritage, Kohima.
Giving an overview of the state finances and budget and way forward, the APC who earlier had also hold the position of Secretary Finance, Nagaland, said that apart from the “Naga political issue”, the state has also experienced financial crisis due to excess departments and establishments with extra government employees.
Kikheto, however said, in the last 15 years, the state is experiencing better “peace, law and order” while also pointing out that the state has 74 departments which is the second highest in the country.
He said as in the month of March 2020, the state had 1,00,001 regular government employees where he felt that this was one area where resources were being exhausted.
Kikheto emphasized that education expenditures made outside the state accumulate almost Rs 900 Crore expenditure, while dependency on other states for essential commodities incurs expenditure to the tune of Rs 1500 Crore annually with prevalent in election related expenditures.
Senior Research Officer, finance department, Ketoulhou Metha, highlighting on the present status of state finances and budget and way forward, emphasized the need to reduce “revenue expenditure” by way of rationalizing government employment.
He said a congenial environment needs to be created for economic growth and facilitate private sector to accommodate growing population.
Metha also said that there is a need to reduce revenue expenditure, implement pre-paid or smart meter in power sector and capitalize external aided funding of “big” projects.