Nagaland govt directs departments to utilise central funds urgently

Kohima: Concerned over the potential lapse of central funds amounting to more than Rs 500 crore allocated to the state due to delay in the implementation of various projects, the Nagaland government on Wednesday directed its departments to utilise the financial resources urgently.

The matter was thoroughly discussed at a cabinet meeting held during the day, and the need for urgent utilisation of around Rs 500 crore of the Rs 1,200 crore fund, mainly by the health and rural development departments, was stressed, a minister said.

Speaking to reporters after the cabinet meeting held at the Chief Minister’s Office here, state government spokesperson and Minister for Power & Parliamentary Affairs K G Kenye said the funds, which are primarily earmarked for departments such as Health and Family Welfare, Urban Development, and Rural Development, are "at risk of not being fully utilised if the projects are not completed on time".

“It’s a huge amount for us,” Kenye said explaining that a substantial portion of these funds had already been allocated, but 'slow progress in the execution of projects has left a significant amount that is yet to be spent".

A major issue, he said, lies in the delay of infrastructure projects, particularly in the health sector, where wellness centres are to be constructed in rural areas.

The minister pointed out that some medical centres are operating in rented and private spaces due to a lack of infrastructure, a situation that is being urgently addressed through collaboration with local village councils and district officers.

The funds are also crucial for the conversion of older medical centres into wellness facilities, and the procurement of medical equipment in rural areas, Kenye said.

He acknowledged that while financial difficulties have often hindered progress, especially in terms of salary payments for grassroots workers, some concerns have been addressed through the fund diversion for salaries.

He clarified that, according to central guidelines, it is permissible to use funds for such purposes.

"The government has urged all departments concerned to speed up their efforts to complete pending works, ensuring that the state does not lose access to valuable central funding," Kenye said.

On the fund utilisation by the Urban Development Department, he said the challenge is mainly because the state held the civic body elections only last year after a gap of two decades but the newly formed Urban Local Bodies (ULBs) are now tasked with executing various pending projects.

"The government is working with them on a 'war footing' to ensure these works are completed swiftly," he said.

Meanwhile, the government spokesperson also said that matters concerning the directorates and personnel for re-engagement, some extension and regularisation were also taken up in the cabinet meeting.

Kenye said that the council of ministers also approved the recognition of Anato village in Niuland district, which was pending for around eight years.