From Salary to Service: Turning Nagaland’s Budget into Jobs, Enterprise and Hope

A Sunday reflection on public money, public service and the future of our youth

Rev Dr Chingmak Chang

A state budget is more than a collection of figures. It reveals what we value, what we must pay for and what kind of future we are building. Nagaland and Mizoram are neighbouring hill states with difficult terrain, scattered populations, limited industries and heavy dependence on financial support from the Government of India. Their circumstances are not identical, but comparing their budgets gives us useful food for thought.

This reflection is not written to blame government, public employees or pensioners. Salaries are earned, pensions are a right, and many public servants work faithfully in difficult conditions. The question is not whether employees should be paid, but whether every salary paid from public money produces the greatest possible public good.

The Difference Is Smaller Than We Think
For 2026–27, Nagaland has budgeted net expenditure of about Rs 20,952 crore, excluding debt repayment, while Mizoram’s estimated expenditure is approximately Rs 17,077 crore—a difference of only Rs 3,875 crore. Yet Nagaland’s capital outlay is estimated at Rs 2,978 crore, compared with about Rs 2,588 crore in Mizoram. Although Nagaland spends nearly Rs 3,875 crore more overall, its capital outlay is only around Rs 390 crore higher. Much of the additional money is therefore committed before development work begins.

Nagaland has budgeted approximately Rs 7,856 crore for salaries, Rs 3,928 crore for pensions and Rs 1,443 crore for interest payments. Together, these amount to about Rs 13,404 crore, or roughly 68–70% of estimated revenue receipts. A wider calculation that includes debt servicing and other committed payments produces the often-quoted figure of more than 80%. Whichever method is used, the message is the same: very little flexible money remains for infrastructure, human development and job creation.

A Public Salary Is a Public Trust
Recent payroll data reportedly showed more than 1.23 lakh regular and non-regular government employees in Nagaland. Mizoram’s official employment statement recorded about 43,969 filled regular posts across government departments, public undertakings and government-aided bodies. The categories are not identical and must be compared cautiously, but the difference in scale deserves attention.

Government employees and pensioners together may represent roughly 8–9% of Nagaland’s population. The exact percentage may vary, but the moral argument remains: a relatively small section receives a large share of public expenditure and therefore carries a special responsibility towards the remaining 90% or more. This is not criticism; it is recognition of the importance of public servants. A sincere teacher can change hundreds of children, a nurse can protect entire families, an agriculture officer can raise village incomes, an engineer can build infrastructure that lasts, and a helpful officer can enable a young entrepreneur to create ten more jobs. A government salary is not only personal income; it is a public trust.

Hakchang: When Good Public Service Saves Public Money
Hakchang is a small village of about 300 households, yet 127 households send their children to private schools in town because the local government school does not meet the standard parents expect. These families collectively spend about Rs 4 lakh every month on fees, transport, accommodation, food and related costs. The direct annual expenditure is nearly Rs 48 lakh and can reasonably reach Rs 50–60 lakh when all associated expenses are included.

Had the government school functioned with the discipline, commitment and quality of a good private school, much of this money could have remained in Hakchang. It could have strengthened household savings and circulated through farming, shops, construction, transport, healthcare and village enterprises. A committed head teacher, sincere teachers and a responsive Education Department could help one small village retain nearly half a crore rupees every year. Multiplied across hundreds of villages, the contribution to Nagaland’s economy would be enormous. Public service must therefore be measured not only by attendance, salaries paid or funds utilised, but also by the value created and the private costs citizens are spared.

Every Department Must Become a Job Creator
Mizoram has not solved all its economic problems, and Nagaland need not copy another state. Yet Mizoram’s spending shows a clearer effort to connect public money with agriculture, skills, small businesses, markets and productive activity. Its Bana Kaih program (Rs 350 crores)or Handholding Scheme (150 crores), includes support for the procurement of agricultural and horticultural produce from small and marginal farmers. The lesson is that government spending should not end with government employment; it should create job opportunities outside government system.

The government cannot provide a permanent job to every educated young person. If it tried, salaries and pensions would eventually consume almost the entire budget. The sustainable answer is to use departments, infrastructure, knowledge and public resources to help people create their own livelihoods. Enterprise development cannot remain the responsibility of Industries and Commerce alone:

•     Agriculture and Horticulture can organise producer groups, nurseries, storage, processing, packaging, cold chains and reliable markets.

•     Animal Husbandry and Fisheries can support hatcheries, breeding, feed production, veterinary services, processing, cold storage and marketing.

•     Health can create work through home nursing, elderly and palliative care, rehabilitation, mental-health support, diagnostics, ambulance services, equipment maintenance and local food supply to hospitals.

•     Tourism can promote homestays, village guides, trekking, cultural programmes and local food enterprises; Education can introduce practical skills, apprenticeships, enterprise learning and financial literacy.

•     Public Works can train contractors, plumbers, electricians, artisans, machine operators and young engineers, while creating markets for locally produced bricks, blocks, furniture and construction materials.

Reliable electricity, roads, transport and internet connectivity will determine whether hundreds of these enterprises survive or fail. In this sense, every department can become both a wealth creator and a health creator—producing livelihoods, dignity, security and hope.

Political Will Must Lead the Change
This transformation requires deliberate and consistent political will. Elected leaders and senior officers must make job creation a responsibility of every department. Departments should receive clear, realistic targets not only for spending budgets, but also for creating livelihoods, supporting enterprises and increasing household incomes. Each department should be required to report: How many livelihoods did we help create? How many entrepreneurs did we support? How many farmers reached reliable markets? How many local businesses benefited from procurement? How many young people received practical skills and mentoring?

Departments should not be judged only by meetings held, buildings constructed or funds utilised. They should also be judged by the changes produced in people’s lives. Political will is equally necessary to ensure fair and transparent access to roads, electricity, internet, training, credit, technology, raw materials, schemes and markets. Citizens should not require political connections, favouritism or arm-twisting to receive what public policy already promises. When systems are fair and resources accessible, our people will find their own destiny. Government need not control every enterprise; it must open doors, remove needless obstacles and create an environment in which people can work, produce and prosper.

Build Markets, Mentoring and Local Circulation
Enterprise development cannot end with distributing subsidies, machines or loans. Young entrepreneurs need patient mentoring, affordable credit, bookkeeping support, quality control, dependable electricity, transport and market access. Government procurement can become a powerful instrument of job creation. Schools, hostels, hospitals, police establishments and offices buy large quantities of food, furniture, uniforms, stationery and other materials. Where quality and price standards are met, a reasonable share should be sourced from local farmers, self-help groups and youth enterprises. This would allow public money to circulate within Nagaland—paying farmers, transporters, artisans, shopkeepers and entrepreneurs—before it leaves the state.

Unemployment Is Also a Mental-Health Concern
Nagaland’s unemployment rate was reported at 7.1% in the Periodic Labour Force Survey 2023–24, against a national rate of 3.2%. Unemployment is not only an economic problem; it is also an emotional, mental-health and social problem. Parents sell land, borrow money and use lifetime savings to educate their children, only to see many return without meaningful work. Some prepare for government examinations until they cross the age limit. Others struggle silently with depression, anxiety, frustration and loss of self-worth, and some become vulnerable to alcohol, drugs, gambling or other destructive habits.

We should not claim that unemployment automatically causes conflict or insurgency; such problems have many complex causes. But a society in which thousands of young people feel excluded, humiliated and without a future becomes emotionally fragile. When hope in peaceful institutions weakens, anger, extremism and violence can find space. Creating work, dignity and belonging is therefore not only economic policy. It is also policy for mental health, social harmony and lasting peace.

A New Social Understanding for Nagaland
Nagaland does not need an angry debate between government employees and unemployed youth. Government employees should be respected, supported and fairly paid. At the same time, every public servant should recognise that public salary exists to serve the people. A teacher’s salary becomes development when children learn. A health worker’s salary becomes development when patients receive proper care. An agriculture officer’s salary becomes development when farmers earn more. An engineer’s salary becomes development when infrastructure is safe and durable. An administrator’s salary becomes development when citizens receive timely, fair and respectful service.

The issue is not salary versus development. The real issue is whether salary expenditure is producing development. The way forward is not to disrespect public servants, but to restore the dignity, purpose and accountability of public service. The 8–9% who receive salaries and pensions from public funds are in a unique position to productively serve the remaining 90% or more.

Nagaland has intelligence, land, community strength, faith institutions, natural resources and talented young people. Government cannot do everything, but it can create the conditions in which people do many things for themselves. The comparison with Mizoram is not an argument about which state is better. It is an invitation to ask whether more public money can be converted into productive assets, enterprises, livelihoods and hope.

For once, let us choose a different path—not government employment for a few, but opportunity, dignity and productive work for the many.

The issue is not salary against development. It is salary in the service of development.
 



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