The Nagaland Congress has accused the state government of strangling the growth of economy in the state.
Nagaland PCC president K Therie in a statement alleged that the state government has blocked all banks and other financial institutions from lending to the private sector by way of rejecting the application of Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act 2002 on the ground that it would infringe on the provisions of Article 371 (A).
The PCC said this attitude of the government, banks and other financial institutions has strangled the growth of economy in the state.
It said the economy is arm-twisted and squeezed by rampant, random and uncontrolled illegal taxation and collection of commissions at source allegedly by ministers and bureaucrats while some government departments are even collecting taxes at check gates as exposed by the Public Action Committee of Naga Council Dimapur.
“There is total failure in controlling and planning for funding,” the PCC said.
It hoped the state government is aware that there are two ways of funding the growth of economy – one is the state budget through Finance Commission Award and state’s own resources to administrate justice and develop infrastructures so as to facilitate the growth of economy and the other is funding the private sector through banks and other financial institutions.
Pointing out that Rs 18,301 crore is the state budget for the current financial year, the PCC said the budget does not percolate down to the districts and divisions anymore. They have been centralized and are being drawn in treasuries in Kohima and Dimapur, it added.
It called for reviewing the state government’s stand that SARFAESI Act conflicts with Article 371(A).