Nagaland Chief Minister Dr Neiphiu Rio calls on Union Finance Minister Nirmala Sitharaman in New Delhi on February 4. (Photo Courtesy: @ Neiphiu_Rio/X)
Dimapur, February 4 (MExN): Amid growing concerns over the Sixteenth Finance Commission’s recommendations, Chief Minister Dr Neiphiu Rio on Wednesday took Nagaland’s case to the Centre, flagging the potential fiscal fallout of the proposed changes.
In a post on X, Rio said he met Union Finance Minister Nirmala Sitharaman and raised concerns over the proposed discontinuation of Revenue Deficit Grants (RDGs) and the reduction in Nagaland’s share of tax devolution under the 16th Finance Commission award.
The Chief Minister said he conveyed the State’s apprehensions over the impact such measures could have on finances and ongoing development commitments.
“Grateful to her for understanding and for the assurance of full support,” Rio stated.
The meeting comes against the backdrop of the 16th Finance Commission report, which indicated a significant reduction in tax devolution share in central taxes for Nagaland as well as withdrawal of RDGs, which could significantly impact the State’s fiscal position during the 2026–31 period.
