Nagaland registers 2nd highest debt in Country: 15th Finance Commission report

Nagaland has the second highest debt in the Country.

This was stated by the 15^th Finance Commission in its report titled – ‘Finance Commission in COVID times’.

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Nagaland’s debt/GSDP is much higher than the National Health Education Standards (NEHS) average of 29.61%.

However, Nagaland’s debt/GSDP reduced from 55.5% in 2011–12 to 42.7 in 2018–19.

In its report, the 15^th Finance Commission also stated that Nagaland needs to “restructure and rationalise its expenditure priorities”.

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Nagaland’s capital expenditure declined between 2011–12 and 2018–19, both as GSDP percentage (from 10.3% to 5.9%) and total expenditure (20.4% to 12.8%).

The 15^th Finance Commission also noted that Nagaland needs to undertake steps to cut its committed expenditure burden and make space for resources for development expenditure.

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The 15^th Finance Commission also stated that Nagaland needs to reduce its infrastructure deficit by increasing capital expenditure and finding alternate sources of funding.

“The State needs to ensure that the benets of economic growth trickle down to all sections of society,” the 15^th Finance Commission report stated.

As per the Ranking in NITI Aayog’s Sustainable Development Goals Index (2019), Nagaland is placed 19^th out of 29 States.

The 15 Finance Commission has recommended Total Transfers for Nagaland amounting to Rs 47812 crore under various heads.

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