Kohima: Nagaland's economy grew by 9.39 percent during the 2024-25 fiscal year. Chief Minister Dr. Neiphiu Rio tabled the Comptroller and Auditor General of India report in the state assembly on September 3. The audit reveals deep fiscal trouble. The state consistently misses targets set by the Fiscal Responsibility and Budget Management Act.
Revenue receipts dipped 0.42 percent. Central grants fell while tax collections rose. Own tax revenue climbed to Rs 1,710 crore from Rs 1,598 crore the previous year. Despite these gains, the state remains tethered to central funding. Rigid spending dominates the budget. Salaries, pensions, and interest payments consumed 71.21 percent of revenue receipts.
Capital investment suffered as a result. Audit findings show Rs 305.18 crore remains locked in 309 incomplete projects. The state also carries Rs 26.43 crore in undischarged liabilities. These include interest, road safety funds, and finance commission grants. Some pending utilization certificates date back to 2011-12.
The government misclassified Rs 14.05 crore of revenue spending as capital expenditure. This error skewed the final fiscal deficit figures. The audited fiscal deficit now sits at Rs 2,786.78 crore, or 6.17 percent of GSDP. The report delivers a stark warning regarding the state's path.
"The increasing debt load, high committed expenditure, and limited capital investment raise concerns about fiscal sustainability. There is a need for revenue augmentation, better expenditure control, and structural reforms to ensure long term fiscal health," the report stated.
Financial transparency remains a concern. The state frequently uses Minor Head 800 for receipts and spending. Excess expenditure in 79 grants still awaits legislative regularization. Officials point to the Single Nodal Agency implementation as a positive step for tracking funds. However, the fiscal picture remains grim.
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