Another deficit budget  

Despite receiving a peace bonus of Rs 365 crore, Nagaland’s economy continue to be dismal. After the Centre disbursed the amount, it was anticipated that the State’s economy might make a turnaround. However, Finance Minister K. Therie recently presented a Rs 26.51-crore deficit Tax-free Budget for the State for 2004-05. The plan size for the current year is yet to be finalised by the Planning Commission. North-Eastern states have often been discriminated by the Centre while allotting funds. While the bigger states get the bulk of the amount, smaller states specially those in the North-East, which are affected by insurgency, have little capacity to generate revenue on their own, continue to suffer. However, deficit budget shows that initiatives like granting peace bonus do not always help to boost the economy of the State if the funds are rationally utilized. Mr Therie has emphasised on the need for a peaceful atmosphere in the State for the healthy growth of the State’s econ omy and appealed to all sections of society as well as various groups to help the government create a peaceful atmosphere for economic advancement of the State. He said the offer of unconditional peace talks by former Prime Minister P V Narashima Rao and steps taken by Atal Bihari Vajpayee were landmark efforts to solve the Naga political problem. With peace prevailing in Nagaland for the past seven years, the State’s economy is expected to grow and deficit budgets must be things of the past. Therefore the onus lies on the State Governments to improve the sagging finances of the State. Mr Therie has said extortions by the rebel groups are contributing to deteriorating health of the State’s economy and to address the root cause of the problem, the State Government has taken up with the Centre the issue of grant of sustenance funds to those groups, who have signed ceasefire agreements with the Centre. The Nagaland Government is planning a slew of measures to boost the economy o f the State. Mr Therie has said the government was planning several avenues to increase the revenue of the State and some new taxes will be introduced in near future. Hope the remedial measures announced by the Finance Minister would enable to improve the financial health of the State and boost its economy.

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