KOHIMA, Nov 6: Nagaland Chief Minister Neiphiu Rio has called on the 16th Finance Commission to allocate Rs 40,386.5 crore to tackle the state’s financial challenges and support its development over the next five years. Meeting with the Finance Commission delegation led by Chairman Arvind Panagariya in Kohima, Rio highlighted the unique financial needs of Nagaland, which attained statehood under the 1960 16-Point Agreement that promised special support.
Rio expressed concerns over the state’s dwindling share of central funds due to an increase in cesses and surcharges that aren’t shared with states. He requested revenue deficit grants to avoid heavy borrowing, which could hamper future growth. He also urged for a revised funding model that considers Nagaland’s limited revenue sources.
Rio outlined critical projects, including a 364-km highway along the Nagaland-Assam border, estimated at Rs 9,000 crore, and Rs 865 crore for the Ciethu Airport, which would make Kohima—currently India’s only state capital without an airport—more accessible. Additionally, he sought Rs 379 crore to complete the long-delayed High Court complex in Kohima, for which the state has already invested Rs 162.8 crore without central assistance.
He also proposed either raising or removing the expenditure cap on Externally Aided Projects, crucial for urban infrastructure, healthcare, education, water supply, and agriculture. In response, Panagariya highlighted the importance of strengthening the state’s revenue base and outlined the Commission’s role in advising on central fund distribution across states.
