Kohima: The Sixteenth Finance Commission, led by Chairman Arvind Panagariya, held a press conference in Kohima on November 5, 2024, marking the 10th state in the Commission's nationwide tour, which began in Himachal Pradesh. The meeting covered Nagaland's unique needs and expectations, with Chief Secretary Nagaland highlighting the state's developmental progress.
During the briefing, Arvind Panagariya highlighted that the Finance Commission is responsible for advising on the vertical devolution of resources, determining the division of the divisible pool between the Centre and states, and the horizontal devolution, determining how states' shares are distributed between states based on criteria such as per capita income, population, and forest area.
In addition, the Finance Commission also recommends grants to local bodies from the consolidated fund of India and disaster relief grants. Nagaland's main demands include the inclusion of cesses and surcharges in the divisible pool, an increase in the weightage given to states' forest cover in the horizontal distribution, and the incorporation of a "disability index" to address the challenges of the state's hilly terrain.
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The state requested the consideration of capital deficit grants to support capital projects previously funded by the planning commission and project-specific grants for infrastructure development. Reportedly, the Sixteenth Finance Commission also held meetings with urban local bodies, rural local bodies, political parties, and representatives of trade, industries, and commerce.
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