Kohima: Nagaland Chief Minister Neiphiu Rio is currently in New Delhi to secure emergency federal support. The state faces a major fiscal gap following the discontinuation of Revenue Deficit Grants. These grants previously provided around Rs 4,248 crore annually.
Rio met Union Finance Minister Nirmala Sitharaman on July 16. He requested assistance through the Special Assistance to States for Capital Investment scheme. The 16th Finance Commission stopped the deficit grants and reduced the state's share of central taxes. Nagaland's projected devolution for 2026 to 2027 dropped to Rs 7,341 crore from an estimated Rs 8,684 crore. Rio noted, "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."
The state previously received Rs 21,249 crore in deficit grants under the 15th Finance Commission. Losing this funding could cost the state up to Rs 9,000 crore annually. This threatens government salary payments and core development work. Rio warned of these dangers during the 73rd North Eastern Council Plenary on June 4.
Infrastructure remains a top priority. Rio and Deputy Chief Ministers TR Zeliang and Y Patton met Union Minister for Road Transport and Highways Nitin Gadkari on Thursday. They pushed for the Foothill Road to become a national highway. They also demanded faster action on pending national highway projects.
Earlier, the delegation met Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal. They discussed inland waterways and new economic opportunities. The government continues to enforce austerity measures to manage the shortfall. Internal tax revenues remain too low to cover the gap. Legal hurdles keep potential oil and gas revenue stalled in the Assam border belt.
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