Nagaland sets up Third State Finance Commission

The Nagaland government has constituted the Third Nagaland State Finance Commission, as per the finance department notification no. FRC-3/SFC/2022 dated 20.03.2023, under the chairmanship of Menukhol John, retired principal secretary of the state government.

According to a government notification on Tuesday, the commission's mandate is to make recommendations covering a three-year period, commencing on April a, 2023, to March 31, 2026, pertaining to the principles governing the distribution of the net proceeds of taxes, duties, tolls, and fees leviable by the state, which may be divided between the state and municipalities.

The notification said the mandate is also on the determination of taxes, duties, tolls, and fees that may be assigned to or appropriated by the municipalities as well as the grant-in-aid to the municipalities from the consolidated fund of the state and measures required to improve the financial position of municipalities.

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The commission was also tasked to recommend the rates of various taxes, tolls, and fees that may be raised by the municipalities, along with the method of determining the same, besides any other matter referred to it by the government in the interest of sound finances of municipalities.

In formulating its recommendations, the commission has been asked to consider various factors, including the objective of balancing the receipts and expenditure of the state government and local bodies, generating a surplus for capital investment, the resources of the state government, and demands thereon, particularly in respect of expenditure on civil administration, maintenance and upkeep of capital assets, maintenance expenditures on plan schemes, and other committed expenditure or liabilities of the state. The commission will also take into account the requirements of the municipalities, their potential for raising resources, and avenues for reducing expenditure.

The commission has invited suggestions/views on the above issues from the public, institutions and organisations. Interested individuals and entities can submit their suggestions/views to the commission through post, addressed to the member secretary, Third Nagaland State Finance Commission, directorate of treasuries and accounts building, first floor, New Capital Complex, Kohima, or via email to thirdnagalandfincom@gmail.com.

The deadline for submission has been fixed on September 15, 2023. The commission believes that the valuable inputs received will contribute to better service delivery by municipalities and town councils.