Guwahati, July 27, 2023: Nagaland’s government has taken a significant step in promoting financial stability and equitable distribution of resources within the state. They have recently established the Third Nagaland State Finance Commission, headed by the esteemed Menukhol John, who previously served as the Retired Principal Secretary to the Government of Nagaland. This commission has been entrusted with a crucial task of formulating recommendations for a three-year period, starting from April 1, 2023, to March 31, 2026.
The commission’s responsibilities encompass a wide range of matters concerning the allocation and utilization of funds. They will focus on key aspects like deciding the principles governing the distribution of taxes, duties, tolls, and fees between the state and municipalities. Additionally, they will determine the extent of taxes and fees that should be assigned to the municipalities, as well as the grants-in-aid to be provided from the State’s Consolidated Fund.
To improve the financial health of the municipalities, the commission will identify necessary measures and devise strategies for revenue generation and expenditure reduction. Part of this process involves setting the rates of various taxes, tolls, and fees that the municipalities can levy, while also establishing the methods for calculating them.
Furthermore, the government has tasked the commission with considering other financial matters relevant to the municipalities’ well-being. This includes any issue that the government may refer to the commission for the sake of ensuring sound financial management.
In formulating their recommendations, the commission will take into account several factors, such as maintaining a balance between the state government’s income and expenses, creating surpluses for capital investments, and meeting the demands on state resources. Crucially, the commission will assess the financial requirements of the municipalities, exploring their potential to raise resources and identifying avenues to reduce expenditure.
Recognizing the importance of public participation, the commission has extended an invitation for suggestions and views from the general public, institutions, and organizations. This inclusive approach seeks to engage interested individuals and entities in contributing valuable input. To accommodate submissions, the commission will accept suggestions and views through postal mail or email until September 15, 2023. They believe that this valuable input will enhance the overall service delivery of municipalities and town councils, ultimately benefiting the people of Nagaland. The postal address for submissions is the Member Secretary, Third Nagaland State Finance Commission, Directorate of Treasuries and Accounts Building, First Floor, New Capital Complex, Kohima, Nagaland, or through email at thirdnagalandfincom@gmail.com.
