State govt to release salaries by Aug 16

After the recent order to hold payment of salaries and wages of government employees, additional chief secretary and finance commissioner Sentiyanger Imchen informed that the salaries would be released by August 16.
Interacting with media persons on the sideline of an event at Kisama on Friday, Imchen mentioned that release of salaries depended on the State government’s resources position as the State receive revenue deficit grant only during the first week and share of Central taxes around 10th of the month.
Imchen further noted that the salary release would also depend on the balance account with the RBI.
He further informed that for withdrawal of pensions and minor withdrawal of GPF, etc, amounting to about Rs 750 crore, the State government needed cash in hand.
But as the government was largely dependent on share of Central taxes and revenue deficit grant only when these two shares entered the State’s account, salaries could be released, he explained.
Imchen admitted to have sent out the order to release salaries on the first day of every month, adding that earlier salary bills were prepared and sent to treasuries on 30th of every month, which the treasuries and accounts released on the same day.
However, there were some “accounting issues” that were going on, he disclosed.
He regretted the confusion caused as the order was very “cryptic” and not explained well, but claimed that the intention was good though it could not materialise.
Imchen maintained that the intention of the Finance department was to release salaries on the first day of every month, but the State needs the resources to do it.
With regard to the loans acquired by the government, he said over and above the available resources, the government has also been going for open market borrowings, which keeps on accumulating and at the same time the state continues to repay.
He, however, said that as compared to other States, Nagaland’s financial position was not that bad so as to prompt the Centre to impose an embargo.