Thursday, February 27, 2025
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Challenges of low revenue

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Editor,
I’m sure many of us were not surprised by the results of of the ADC elections to the Khasi Hills and Jaintia Hills. However, “seeing is believing,” as someone said. We have seen the campaigns on social media platforms before the election where VPP supporters were shown upbeat and supporting their candidates at public meetings. This result was indeed one of the most awaited in recent times for us Meghalayan voters. Now that they have a single party majority in KHADC my thoughts on this are actually a reminder to the VPP who will be leading the Council and is expected to walk the talk. Therefore the VPP whose long term vision is to capture the government after the 2028 Assembly elections, should keep in mind how to handle some of the challenges we are facing in our State clearly due to low revenue generation. In Meghalaya we are fully reliant on Central Government Funds for about 80% as the State revenue is covered up to only 14%. Hence, Meghalaya’s heavy reliance on central government funds, with only a small portion of its revenue generated internally, creates several difficulties.
Here’s a breakdown of the key challenges:
Fiscal vulnerability : A high dependence on central funds makes the state’s finances susceptible to changes in central government policies and allocations. This lack of financial autonomy can hinder long-term planning and development. When a state is heavily reliant on outside funding, it can hamper sustainable growth.
Limited development capacity : Insufficient internal revenue restricts the state’s ability to invest in crucial development projects, such as infrastructure, education, and healthcare. This can impede economic growth and limit opportunities for the state’s residents.
Debt trap risk: To bridge the revenue gap, the state may resort to borrowing, leading to a potential debt trap. This occurs when a state must borrow more money simply to repay existing debts, thereby creating a dangerous cycle.
The CAG report has highlighted this danger.
Challenges in revenue generation: Meghalaya faces challenges in expanding its revenue base. This could be due to factors like:
A) Limited industrialization.
B) Geographical constraints.
C) Challenges in tax collection.
Accountability and utilization: Proper utilization of central funds is crucial. Issues like pending utilization certificates can create doubts about the efficient use of resources, potentially affecting future funding.
Economic growth disparity: Reports have shown that Meghalaya has had challenges with economic growth rates, sometimes lagging behind national averages. This can exacerbate the problem of needing outside funding.
In essence, Meghalaya’s financial situation necessitates a focus on increasing its internal revenue generation, improving fiscal management, and ensuring the efficient use of available funds. One of our hopes on VPP is to see how these kinds of challenges can be overcome through their hard work and intelligence.
Yours etc.,
Riwanki Suchiang,
Via email

Intricacies of human kinship
Editor,
The result of the District Council Elections in our state and just like the last parliamentary election, it was an election marred by a high-pitched election campaign where the main poll plank of some political parties was preservation of the matrilineal system and targeting the leader of one party since his children take his clan name. It didn’t work in the parliamentary election and it didn’t work this time around also. People who follow the patrilineal system like our family are still a rare breed and it is almost non-existent in rural areas of our state. Academically this is a fascinating topic. It was Friedrich Engels who first proposed the theory that early human kinship was matrilineal; this theory was unanimously supported by anthropologists in the 19th century. Then in the 20th century this theory was discarded as not being universally true and in recent years some geneticists and paleo-anthropologists have found genetic evidence that early human kinship might have been matrilineal after all.
A year or so ago, I stumbled upon a video of a leading Native American activist talking fondly about the matrilineal system, I later found out that most Native American tribes used to or are still following the matrilineal system. Native Americans are said to have migrated from Asia thousands of years ago and culturally and genetically they do have ties with the people of Siberia and Mongolia; they follow the matrilineal system and have lived for thousands of years in isolation. This might be a solid reason to believe the theory that early human kinship was matrilineal. As far as our society is concerned, oral tradition has it that we once followed the patrilineal system but changed to a matrilineal system because men were constantly engaged in warfare. Academically this theory is also pointed to by scholars as one of the reasons why some communities end up adopting the matrilineal system.
Politically this issue is definitely going to resurface come the next elections.
Yours etc.,
Gary Marbaniang,
Via email

 

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