Photo Courtesy: nagalandpost
Kohima: Nagaland Chief Minister Neiphiu Rio visited New Delhi on July 15 and 16 to secure emergency federal support. He met with Union Finance Minister Nirmala Sitharaman to address the state's severe financial strain. The 16th Finance Commission stopped the state's Revenue Deficit Grants. These grants previously provided roughly Rs 4,248 crore annually.
The loss of these funds threatens development and government salaries. Rio requested help under the Special Assistance to States for Capital Investment scheme. "Called on the Hon'ble Union Finance Minister... Sought her consideration following the discontinuation of RDGs, and for support under SASCI for our developmental priorities. Grateful for her guidance and support," Rio stated on X.
Nagaland's fiscal outlook is grim. The 16th Finance Commission reduced the state's share of central taxes by roughly 15 percent. Projected devolution for 2026-27 dropped from Rs 8,684 crore to Rs 7,341 crore. The state faces an annual shortfall of Rs 8,000 to 9,000 crore without new grants.
Rio also met with Minister for Road Transport and Highways Nitin Gadkari. Accompanied by Deputy Chief Ministers T.R. Zeliang and Y. Patton, he lobbied for urgent highway projects. The group pushed for the declaration of the Foothill Road as a National Highway. They also requested development of strategic corridors.
Gadkari reviewed progress on current road projects. He insisted on timely completion to improve safety and connectivity. Separately, Rio and Patton met Minister for Ports, Shipping and Waterways Sarbananda Sonowal on July 15. They discussed new inland waterways and infrastructure for economic growth.
The state government has few options. Raising taxes remains difficult. Officials are currently rationalizing spending to save cash. They hope these repeated federal outreach trips will bridge the funding gap.
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