Nagaland has yet to receive a whopping Rs.1087.75 crore which remain outstanding from subsequent financial years beginning 2010-11 to 2014-15 as per the recommendation of the outgoing 13th Finance Commission of India.
The huge amount outstanding is almost equal to the current budget deficit totalling around Rs.1234 crore ending 2014-15.
As per the tabulation, the highest balance amount is under the head ‘Local Bodies’ where the state received Rs.72.45 crore as against the allotment of Rs.428 crore. Similarly, under State Specific Needs, Nagaland was allotted Rs.250 crore and received only Rs.120 crore as on 2014-15 of which the outstanding balance that remained to be released was Rs.130 crore.
The term of the 13th Finance Commission will end by March 31,2015 and if the government of Nagaland failed to beat the deadline, it will have to forego the entire amount of Rs.1087.75 crore.
The next 14th Finance Commission will come into effect from April 1,2015 and it is not known what new parameters or projects it would approve for the state.
The outstanding amount due to Nagaland as per the recommendations of the 13th Finance Commission since 2010-11, arose since the state government could not furnish detailed Utilisation Certificate for various approved ongoing projects. Therefore, in lieu of failure to submit Utilisation Certificates, the amount from various heads has not been released.
The 13th Finance Commission had instituted Nodal Agencies to monitor the implementation of various projects in various states. The Utilisation Certificates are to be issued by the state government in compliance with various requirements of Nodal Agencies.