Kohima: Nagaland finance commissioner Toshi Aier has said that the recommendations of the 13th Finance Commission have been ”very harsh” on the state, but expects a better fiscal arrangement from the 14th Finance panel.
He said the Commission restricted the non-plan expenditure to 35 per cent for a special category state like Nagaland where the expenditure is over 60 per cent with a workforce of 1.25 lakh government employees.
Speaking at a training programme for officers and staff at the office of commissioner of taxes, Dimapur, Aier said Nagaland was heavily dependent on central grants due to poor resource base of its own which was only 8 per cent while the remaining 92 per cent came from the Centre.
He said the state was still lagging behind in economic front despite the Centre awarding 90 per cent grant in plan fund for the special category states.
But the restriction of 35 per cent on non-plan expenditure had been very harsh, he said.
Under this condition, Aier said that there was no other option but to mobilize maximum possible resources.
The commissioner said Nagaland hoped a better financial arrangement from the 14th Finance Commission for which the constituting process already begun.
Commissioner of taxes Dinesh Kumar said that the state witnessed a growth of 35 per cent in tax collection during the year 2011-12 at over Rs 258 crore.
The revenue target for the current financial year is pegged at Rs 310 crore, he said. (PTI)