nagaland-seeks-40-000-crore-grant-to-tackle-capital-deficit

Nagaland Chief Minister Neiphiu Rio has sought over Rs 40,000 crore in grants from the visiting 16th Finance Commission to offset the state’s capital deficit.

This financial support, Rio argued, is essential for laying a foundation for Nagaland’s long-term economic stability and reducing its reliance on Revenue Deficit Grants.

During a meeting with the Finance Commission’s representatives, Rio highlighted key fiscal needs and development goals, urging an arrangement that would enable Nagaland to make significant contributions to the national economy.

In detailing the state’s requirements, he projected an allocation of Rs 9,000 crore to build a 364-km border highway with Assam and Rs 865 crore for constructing an airport at Ciethu, near Kohima.

Rio proposed a capital grant of Rs 40,386.5 crore, asserting it would provide Nagaland with an enabling atmosphere to foster self-reliance over time.

He also pointed to recent progress in various economic sectors, noting that agriculture is shifting towards commercial crops such as coffee, rubber, palm oil, and areca nuts.

“We need funding for value-addition activities such as sorting, grading, and processing, as well as market linkages to maximise farmers’ earnings from their produce,” Rio stated.

He stressed that Nagaland’s organic farming practices present a unique opportunity to command premium prices in niche markets.

Further discussing Nagaland’s economic trajectory, Rio observed that the state’s secondary sector remains underdeveloped due to persistent financial challenges, leading to a reliance on the tertiary sector, which now contributes 63.57 per cent of Nagaland’s economy.

He credited much of this growth to the tourism and hospitality industries, driven by Nagaland’s youthful population.

Rio also drew attention to the dire condition of essential government infrastructure, proposing an allocation of Rs 7,884.80 crore to refurbish public service buildings, many of which are over 50 years old and in disrepair.

 

Sources disclosed that, beyond the Chief Minister’s requests, the Finance Department has submitted a memorandum seeking nearly Rs 1 lakh crore to fund a range of state-specific projects.