Nagaland Chief Minister Neiphiu Rio has requested over Rs 40,000 crore from the 16th Finance Commission to address the state’s capital deficit. During a meeting with the Commission members, Rio emphasised the need for financial support to strengthen Nagaland’s role in national development. He highlighted specific projects requiring funds, such as a highway along the Assam border and an airport near Ciethu.

Rio outlined a requirement of Rs 9,000 crore for constructing a 364 km highway and Rs 865 crore for an airport at Ciethu. He proposed grants totalling Rs 40,386.5 crore to offset the capital deficit, aiming to reduce reliance on Revenue Deficit Grants over time. This financial support is crucial for creating a conducive environment for development in Nagaland.

Economic Growth and Agriculture

The Chief Minister noted significant progress in key economic sectors, with agriculture shifting towards commercial crops like coffee, rubber, palm oil, and areca nuts. He stressed the importance of funding value-addition activities such as sorting, grading, processing, and establishing market linkages to maximise farmers’ profits. Organic farming practices in Nagaland offer premium pricing opportunities and niche market potential.

Rio highlighted that sustaining momentum in agriculture is vital for making it a viable economic alternative at the grassroots level. The state’s organic farming practices can command higher prices and create niche markets with strong demand. This approach can transform farming into a key driver of economic growth.

Challenges in Secondary Sector Development

Due to financial constraints over decades, Nagaland has struggled to develop its secondary sector. Consequently, growth has shifted towards the tertiary sector, which now accounts for 63.57% of the state’s economy. This shift has occurred with minimal government intervention, driven by expanding hospitality and tourism sectors and a youthful population.

Rio pointed out that many government buildings related to public services like schools and hospitals are over 50 years old and in poor condition. To address this issue, he proposed allocating Rs 7,884.80 crore for their renovation and improvement.

Comprehensive Financial Proposal

In addition to Rio’s proposals, sources revealed that the state government submitted a memorandum through the Finance Department seeking nearly Rs 1 lakh crore in grants for various state-specific projects. These funds aim to enhance infrastructure and stimulate economic growth across Nagaland.

The Chief Minister’s appeal underscores Nagaland’s need for substantial financial assistance to overcome its capital deficit and foster sustainable development. By addressing these challenges, the state can play a more significant role in India’s progress while improving living standards for its residents.