New Delhi, Feb 4: Nagaland Chief Minister Neiphiu Rio met with Union Finance Minister Nirmala Sitharaman in New Delhi on Tuesday to discuss the impact of the 16th Finance Commission’s fiscal recommendations on Nagaland’s finances.
 |
| Nagaland Chief Minister Neiphiu Rio greets Union Finance Minister Nirmala Sitharaman during their meeting in New Delhi. |
In a post on social media, Rio said he conveyed concerns over the Finance Commission’s proposal to discontinue Revenue Deficit Grants (RDGs) and the reduction in tax devolution for the state. He expressed gratitude to Sitharaman for understanding Nagaland’s position and for assuring full support from the Union Government.
The 16th Finance Commission - whose recommendations will guide central–state financial relations for the five-year period starting April 1, 2026 - has retained the vertical share of state tax devolution at 41% of the divisible pool, while discontinuing routine revenue deficit grants and emphasising fiscal discipline and outcome-based expenditure for states.
Rio was accompanied by other senior officials, including Deputy Chief Minister T.R. Zeliang, and held detailed discussions on how the changes could affect Nagaland’s fiscal planning, public services and development priorities. He thanked Sitharaman for her continued support and engagement on budgetary issues impacting the state.
ALSO READ: 79th Chakhesang Students Union General Conference Begins at Zuketsa
The meeting follows ongoing debates among states about the Finance Commission’s formula for tax devolution and grants, with several urging a higher share of central revenues to meet expanding developmental and welfare needs.
Rio’s engagement with the Union Finance Minister comes at a time when states are preparing for the upcoming fiscal year, and underscores Nagaland’s efforts to safeguard its fiscal interests within the federal framework.
