Nagaland Government Takes Bold Step: Establishes Third State Finance Commission for Equitable Resource Allocation

July 27, 2023: In a significant move towards promoting financial stability and fair allocation of resources within Nagaland, the state government has established the Third Nagaland State Finance Commission. The commission, under the leadership of the respected Menukhol John, former Retired Principal Secretary to the Government of Nagaland, has been entrusted with the task of formulating recommendations for the period from April 1, 2023, to March 31, 2026.

The main responsibilities of this commission revolve around the allocation and utilization of funds. They will be focusing on crucial aspects such as determining the principles for distributing taxes, duties, tolls, and fees between the state and municipalities. Additionally, the commission will decide the portion of taxes and fees that should go to the municipalities, along with the grants-in-aid from the State's Consolidated Fund.

To strengthen the financial health of municipalities, the commission will identify necessary measures and strategies for increasing revenue and reducing expenses. This will involve setting appropriate rates for various taxes, tolls, and fees that municipalities can levy, as well as establishing the methods for calculating them.

Moreover, the government has tasked the commission with considering other financial matters relevant to the well-being of municipalities. This includes any financial issues referred to the commission by the government, with the aim of ensuring sound financial management.

The commission aims to formulate its recommendations while considering several factors, such as maintaining a balance between the state government's income and expenses, creating surpluses for capital investments, and meeting the demands on state resources. Of utmost importance is the assessment of financial requirements of municipalities, exploring their potential for raising resources, and identifying opportunities to reduce expenditure.

Recognizing the significance of public participation, the commission has invited suggestions and views from the general public, institutions, and organizations. This inclusive approach seeks to engage interested individuals and entities in providing valuable input. Submissions will be accepted through postal mail or email until September 15, 2023. The commission believes that this valuable input will enhance the overall service delivery of municipalities and town councils, ultimately benefiting the people of Nagaland.

For those interested in contributing their views and suggestions, submissions can be sent to the following address:

By establishing the Third Nagaland State Finance Commission and involving the public in the decision-making process, the government of Nagaland aims to foster financial transparency, equality, and progress throughout the state.