Dimapur: Sixteen Finance Commission chairman Dr Arvind Panagariya said the Nagaland government urged the commission to incorporate a disability index, recognising the challenges of the state’s hilly terrain, which increases costs of economic activities.
Panagariya told reporters in Kohima on Tuesday evening that the state also requested for consideration of capital deficit grants to support capital projects that had previously been funded by the now-dissolved Planning Commission, as well as project-specific grants for infrastructure development, including airports, foothill roads, hydroelectric projects and others.
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During the press briefing, Panagariya provided an overview of the commission’s discussions with Nagaland chief minister Neiphiu Rio, other cabinet ministers and officials.
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The meetings covered Nagaland’s unique needs and expectations from the Finance Commission, with chief secretary J Alam highlighting the state’s developmental progress.
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Panagariya said a significant part of the meeting involved a presentation detailing Nagaland’s economic and financial landscape and what the state seeks from the commission.
He added that the Finance Commission is responsible for advising on the vertical devolution of resources, which defines the division of the divisible pool between the Centre and states, as well as the horizontal devolution, determining how states’ shares are distributed between states based on criteria such as per capita income, population, forest area among others.
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He said the commission also makes recommendations on the grants to be given to local bodies which come from the Consolidated Fund of India and also makes recommendations on disaster reliefs grants.
Panagariya said one of Nagaland’s main demands concerned the inclusion of cesses and surcharges in the divisible pool, which currently deprives the states of such funds.
The Nagaland government also requested an increase in the weightage given to state’s forest cover in the horizontal distribution, proposing a 15% share for this factor, given the state’s significant forested areas in proportion to its total land area, he added.
The 16th Finance Commission also held meetings with urban local bodies, rural local bodies, political parties, and also with representatives of trade, industries, and commerce.
The four-member commission team which arrived in Nagaland on Monday is on a four-day visit to the state.