Kohima: After a recent order was issued by the state government to hold payment of salaries and wages till further notice, Finance commissioner of Nagaland on Friday clarified that the state was facing “accounting problems”.
Additional chief secretary and finance commissioner Sentiyanger Imchen said the state is facing accounting problems as salaries released on the first of the month are accounted for the month before. He, however, assured that all salaries would be disbursed by the 16th of the month.
A recent order issued by the principal director of Treasuries and Accounts came weeks after the finance commissioner notified that the bill of monthly pay and fixed pay of all government employees would be made on the first working day of the month, following the month to which they relate.
Salaries, pensions and minor withdrawals of GPF, he said, all roughly come to Rs 750 crore. Though the state has the cash in hand, he said it was largely dependent on the share of central taxes and the revenue deficit grant and when that amount is received, the salaries are released. He said the disbursement of salaries also depends on the resource possession of the state.
Imchen said the revenue deficit grant is given to the state in the first week of the month and the share of central taxes comes around the 10th of the month.
Asked if the state was facing a financial crunch, he said “No, not really. The salaries will be released by the 16th. We have to understand that our salary releases depend on the balance account that we have with us”.
He admitted that the order he issued notifying that the salaries would be paid by the first working day was “cryptic” and could have been explained better. “With all good intentions, the first is not possible,” Imchen said.
Imchen said that while an impression was created that salaries would be released on first working day of the month, but it was not meant that way as the release of salaries would depend on resource possession.
As for the loans acquired by the state, he said that it keeps accumulating and the state continues to pay the debt. As for the overall financial possession of the state, he said that Nagaland was doing better than many other states.
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