Sinlung /
06 June 2012

Lal Thanhawla Cries Centre's Negligence

Aizawl, Jun 6 : Mizoram Chief Minister Lal Thanhawla today accused the Finance Commissions of not giving full attention to the needs raised by his state. Addressing a Union finance minister-chaired meeting of North East Chief Ministers at New Delhi today, Lal Thanhawla expressed his disappointment that the Finance Commissions did not fully appreciate the needs projected by Mizoram.

"Many of the committed liabilities, carried over obligations and interest liabilities and others, which constitute a big financial burden, have either been ignored or only partially accepted," Lal Thanhawla told the meeting. As against Mizoram's projected fund requirement of Rs 13,166 crore, the 12th Finance Commission awarded only Rs 9442 crore leaving a gap of Rs 3674 crore, making a gap of Rs 1687 crore for the first two years of the award period alone, he said.

Lal Thanhawla also highlighted that unproductive expenditures constitute nearly 50 percent of the non-plan budget of the state. Also, with manufacturing sector contributing just two percent of the state GSDP, the number of government employees is high.

Implementation of the sixth pay recommendations that created an additional financial liability of about Rs 200 crore annually from 2009-2010 is an "unavoidable compulsion both politically and administratively", he said.

Mizoram has recurring liability of interest payment, which rose from Rs 253 crore in 2010-11 to Rs 261 crore in the current fiscal, the chief minister said.

Accusing the previous ministry of Mizo National Front of leaving behind non-plan liability to the tune of Rs 110 crore, Lal Thanhawla said that his state's non-plan committed liability stands at more than Rs 1054 crore. Lal Thanhawla made it clear that they don't want to go to Delhi with a begging bowl, but they don't have any alternative source.

Though its resource base is weak and inelastic, the state has been making efforts to raise additional resources by hiking takes on LPG, petrol, land revenue and other fees, Lal Thanhawla pointed out, adding, "These measures are expected to give us additional about Rs 100 crore."


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