Nagaland now has the second-highest debt in the country. As per a report of the 15th Finance Commission ‘Finance Commission in COVID Times’ Nagaland in the second rank in ‘Highest Debt in India’.
Nagaland’s debt/GSDP (Gross State Domestic Product) is much higher than the National Health Education Standards (NEHS) average of 29.61 percent. However, Nagaland’s debt/GSDP reduced from 55.5 percent in 2011-12 to 42.7 percent in 2018-19.
But according to Finance Commission (FC), it was much higher than the National Health Education Standards (NEHS) average of 29.61 percent.
The commission further noted that the State needs to restructure and rationalize its expenditure priorities. The committed expenditure (including GIA Salary) of Nagaland was 67.3% of its TRE in 2018–19 (all States average 50.6%), on the other hand, capital expenditure in Nagaland declined between 2011–12 and 2018–19, both as a percentage of GSDP (from 10.3% to 5.9%) and total expenditure (20.4% to 12.8%).
The report also states that the State needs to take measures to reduce the burden of committed expenditure to free up resources for development expenditure.
As per the Ranking in NITI Aayog’s Sustainable Development Goals Index (2019), Nagaland was placed 19th out of 29 States. The State needs to ensure that the benefits of economic growth trickle down to all sections of society, the report stated.
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