Sunday, April 2, 2023

Days of golden goose : If CAG is Mirror, the crisis is big


New Delhi 

The MLAs have rejoiced at a 'good and realistic' Budget from Chief Minister Neiphiu Rio. The list of admirers also included a few chairpersons of state-run PSUs. Then came in a report that figuratively or from the ground of statistics said, there is hardly any corruption in Nagaland vis-a-vis the NCRB report as highlighted in 'Nagaland Page'.


Then comes in the CAG report which says there was poor financial management. It also said Supplementary Grants were obtained "without adequate justification". The period under scrutiny of CAG was 2021-22 and K Therie or even Shurhozelie was not Nagaland's 'wise' Finance Minister. Ting tong !




So that means, something went wrong somewhere and the reactions to the Budget 2023-24 were

guided by pure political motives. Having said so, let us admit preparing the Nagaland Budget by

any government at such a critical juncture is really one of the most difficult jobs. Of course, as we have 

trying to argue for quite sometime now that the days of golden goose in Nagaland economics

(barring the Extortion industry) is now a bygone feature. 


For Nagaland it is a well known fact that the state's resources come from three main sources -- (i) state's

own internal revenues and resource mobilisation, (ii) borrowings and (iii) the central grants. On this backdrop,

we need to study the CAG report objectively. Of many points that came to the fore, the CAG - Govt of India's

own mirror - has recommended that the departments under Nagaland Govt which had incurred excess

expenditures persistently should be identified.


'Nagaland Page'



The CAG also urged the state government to review classification of schemes under Major Heads and Minor

Heads and "bring transparency in accounts". This proves the faceless voter's allegations that corruption

thrives irrespective of what the National Crime Bureau Reports says about the defalcation saga.  


Repeated instances of financial mismanagement and 'meddling' in governance and economic affairs actually 

undermine the sanctity of the Constitution and the rule of law. All these factors contribute towards weakening 

the democratic institutions. The dispensation in power can be easily made answerable on these counts.


These factors have only encouraged arbitrariness and corruption in the government’s decision-making and policy

making processes. And hence, the government of the day should be more realistic than being happy getting

a few laudatory words from politicians.  


The ENPO grievance is only a tip of the iceberg and yet no corrective measure is being taken and that is

a major concern as Nagaland steps into a new financial year. People also seldom realise

the significance of economic participation. People are hardly taught that whatever is paid from public

exchequer ultimately comes from people's pockets. This applies to central government's grants

and also the small revenue amount drawn from within the state.  


The heart of the Budget for Nagaland generally does not lie in mere cold statistics nor the quality of

speech. Rather it lies in the commitment for resource mobilisation from internal tax base and the promise

of discharging a responsibility towards the taxpayers. Lastly, one has to speak about industries

and trade. Compartmentalised economy is as good as perilous.  The G20 mega business summit

on April 5 provides a good opportunity to do soul searching as well as throwing up the state's potential.  


Nagaland cannot survive and hope to make progress by shutting the gates to investors. A big and tastefully

furnished house without a good door and sufficient windows (of opportunities) is only a prison.


ends 


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