Guwahati/Agartala:

Several northeastern states, including Tripura, Manipur, Mizoram, and Assam (southern part), remained cut off from the rest of the country by rail as railway tracks were waterlogged and damaged after landslides triggered by incessant rain in the aftermath of Cyclone Remal, officials said on Wednesday.

A Northeast Frontier Railway (NFR) official said that railway tracks were inundated due to heavy rains or damaged in at least ten places in the New Haflong-Bandarkhal section under the Lumding division in southern Assam’s Dima Hasao district, which is a connecting route to south Assam, Tripura, Manipur, and Mizoram.

“Our engineers and workers are working round-the-clock to restore rail services but heavy rain and adverse weather conditions badly affected the restoration work,” the NFR official told IANS.

He said that full-fledged work could not be started until the rain stopped.

The NFR had cancelled a large number of express, passenger and goods trains bound for south Assam, Tripura, Manipur, and Mizoram since Tuesday.

According to the NFR official, passenger and goods train services have been affected in the region since April 25 owing to heavy landslides causing damage to railway tracks in the Jatinga Lumpur-New Harangajao section under the Lumding division after heavy rains lashed the mountainous Dima Hasao district.

Considering the damaged railway tracks and weak soil in the region, the NFR recently operated a limited number of trains in the daytime on the hilly route, besides regulating long-distance and express trains. The disruptions in services caused a major shortage of transport fuel — petrol and diesel — and other essential goods in southern Assam, Tripura, Mizoram and Manipur. Due to the heavy rain and landslides, highway connectivity was also affected in these states, which are heavily dependent on fuel, essential items, food grains and other commodities from the outside.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Aizawl:

Assam Rifles and Mizoram Police in a joint operation have seized heroin valued at Rs 8.43 crore from Champhai district, an official said on Friday.

Assam Rifles sources said that acting on a tip-off, the joint team of para-military troopers and Mizoram police personnel seized the heroin on Thursday night from an abandoned car at Ngur village in Mizoram’s Champhai district, which is one of the six districts shared borders with Myanmar and the main corridor drugs smuggling.

The contraband was smuggled from Myanmar and was to be supplied to other states, a source said.

No arrest, however, was made in connection with the seizure.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Aizawl:

Supporters of students’ organisation Mizo Zirlai Pawl (MZP) on Friday held a demonstration in Aizawl, protesting against the Congress for fielding Meriam L Hrangchal in the Lunglei South constituency as she is a Mizo woman who married a person from outside the community.

The MZP had in December last year asked all political parties not to nominate any Mizo woman who is married to a non-Mizo person.

Protesting against the Congress, the MZP said it could not accept such a politician sitting in the state assembly and representing the people of Mizoram.

The MZP said that according to the Mizo Customary Law, published by the state Law and Judicial Department, if a Mizo woman marries outside the community, she should adopt the culture, tradition and identity of her husband.

Criticising the Congress, MZP president H Lalthianghlima said the student body is strongly against “a non-tribal in the assembly through his wife”.

“We will intensify our agitation to ensure that such Mizo women are not elected,” he said.

Three resolutions were passed during the protest meeting. Among these were an appeal to the people to not vote for Mizo women who marry outside the community and a pledge to fight for the protection of the Mizo identity.

Defying MZP’s diktat, Congress fielded Ms Hrangchal in the Lunglei South seat. She married local resident Dipen Zoliana, who belonged to the Gorkha community, but has adopted Christianity and Mizo identity.

State Congress president Lalsawta said Ms Hrangchal was given nomination as the party believes that she is an asset to the state.

Congress Vice President Lal Thanzara said that unless the Election Commission rejects her nomination, the party will not replace her as a candidate in the Lunglei South seat.

Following MZP’s appeal, the BJP on Thursday replaced its candidate in the Tuivawl constituency. It had previously fielded Judy Zohmingliani, who married a non-Mizo person. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Arvind Kejriwal’s Aam Aadmi Party has decided to make electoral debut in the northeast by contesting in the Mizoram assembly polls. Rajesh Sharma, AAP’s northeast in-charge, told reporters in Delhi today that the decision to expand the organisation and contest elections in the northeastern states was made on Sunday at a meeting with Mr Kejriwal. A coordination committee and a northeast cell will be formed for organisational expansion.

“AAP will also participate in the upcoming Mizoram assembly elections. The details of the number of seats contested and the constituencies will be provided by the state committee, and an announcement regarding it will be made soon,” Mr Sharma said.

People in the northeast are grappling with various issues, including education, healthcare, inflation, and unemployment, and they believe that AAP can provide solutions to these problems, he said.

The northeast faces a multitude of issues, including rampant corruption and nepotism. The Chief Ministers in these states often treat the state as their family estate, and government contracts are typically awarded to their family members and friends, he said.  

Government schools, hospitals, and roads are in poor condition and inflation is on the rise. Unemployment is a significant problem. Addressing these issues has become crucial, he added.

After witnessing the party’s track record in Delhi and Punjab, the people of the northeast believe that only AAP can accomplish these tasks, Mr Sharma said. So they want AAP to expand its organisation and participate in elections in all the northeastern states.  

In states like Arunachal Pradesh, Assam, and Manipur, where the BJP is in power, they have initiated divisive politics in a forceful manner, he said, “by dividing communities and stoking tensions, including conflicts like the Kuki-Meitei dispute”.

“This has left the people of the northeast quite distressed because they never support this kind of politics. That’s why the AAP is determined to expand its organisation with full force in the northeastern states,” he added.

Champhai, Miozram:

 A woman from Myanmar was arrested and heroin worth Rs 1.04 crore was recovered in Champhai by Assam Rifles on Wednesday.

“In yet another success in its crusade against smuggling activities, Assam Rifles under the aegis of Inspector General Assam Rifles (East), recovered 149 gms of heroin worth Rs 1.04 Cr in general area Mualkawi, Champhai on October 4 and arrested a Myanmar woman,” said a press release.

The operation was carried out by a combined team of Assam Rifles in Champhai and Customs Preventive Force, Champhai based on specific information.

The entire consignment of Heroin worth Rs 1,04,30,000 (Rupees One crore four lakh thirty thousand) and the accused have been handed over to Customs Preventive Force, Champhai for further legal proceedings.

The ongoing smuggling of contraband items is a major cause of concern for the state of Mizoram and India.

Assam Rifles rightly christened as the ‘Sentinels of Northeast’ have continued their efforts against illegal smuggling and have also doubled their efforts to nab the kingpins of the smuggling of contraband items in Mizoram.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Small States must prioritise raising their own revenue to reduce their dependency on the Union government

The fiscal situation of India’s States has garnered significant attention in recent times. Despite ample data on State finances, most of the analysis is centred around larger States. There needs to be more discussion on the fiscal position of small States (i.e. States with a population of less than 1 crore). Most of these small States have distinctive characteristics that limit revenue mobilisation. Recognising these disabilities, the Constitution has provided mechanisms to address them. But these States continue to rely heavily on the Union government for revenue. This dependence creates vulnerabilities for the States as well as the Union.

The total revenue receipts for a State constitute transfers from the Union government such as the State’s share in Union taxes including income tax, corporation tax, and grants, and the State’s own revenues from tax and non-tax sources. The State can raise its own taxes (own tax revenue or OTR) from professions, property, commodities, etc. It can mobilise non-tax revenue (own non-tax revenue or ONTR) from social and economic services, profits, dividends, etc.

The revenue receipts of each of the small States have increased. For six of the nine States, they have grown faster than the gross state domestic product (GSDP). But these increases are primarily due to Union transfers rather than States’ own revenues. In other words, dependence on the Union has not decreased. For three States — Mizoram, Sikkim and Tripura — the revenue receipts have grown slower than the State GSDP implying limited fiscal space to operate.

While the share of Union transfers in the revenue receipts of all States combined hovers between 40% and 50%, the ratio is quite large for the small States. Except for Goa, the Union’s share in all the other small States’ revenue receipts is more than 60% (2022-23 Budget Estimates). For five States, the share is around 90% (Chart 1).

Chart 1 | The chart shows the current transfers to the revenue receipts ratio. The figures are in %.

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The States’ economies have grown over time, but this has not necessarily translated into higher revenue mobilisation capacities. It is best reflected in the continued dominance (2014-2023) of current transfers in the revenue receipts.

The capacity of small States to raise their own taxes continues to be limited. Eight out of nine States fare worse than the all-State average OTR-GSDP ratio (Chart 2).

Chart 2 | The chart shows the own tax revenue (OTR) to gross state domestic product (GSDP). The figures are in %.

The distinctive characteristics of these States restrict economic activity and consequently make it challenging to generate tax revenue. However, what is particularly concerning is that the States’ ability to mobilise taxes has yet to show significant improvement over time. At best, it has fluctuated, with several States experiencing a peak in their OTR-GSDP ratio around 2017-18. The small States do relatively better in mobilising their ONTR, with six States performing better than the all-State average. However, States such as Manipur, Tripura, and Nagaland have consistently struggled in terms of their ONTR-GSDP ratio, performing poorly in comparison.

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The limited capacity of small States to generate their own revenues results in a heavy dependence on the Union government, exposing the States to various vulnerabilities. First, the States rely on the Union governments’ political goodwill. A sudden decline in Union transfers can adversely affect the States’ expenditures. In the last few years, there have been increasing disagreements concerning resource sharing (for example, GST compensation) between the Union and the States. Second, high dependence on the Union might imply less fiscal freedom for the States. A significant portion of the funds transferred by the Union is tied to specific purposes, limiting the States’ flexibility. In some instances, given their existing revenue situation, the States might be unable to match the transfers. Third, the lack of their own revenues can lead to weakened State capacity, affecting the delivery of social, economic, and general services. This situation becomes even more critical as many small States share international borders. The developmental concerns in these States can have implications for national security.

To mitigate these vulnerabilities, the States must prioritise identifying new sources of tax revenue or explore ways to leverage existing ones more effectively. A study by Manipur University evaluating the State finances of Manipur identified how its liquor prohibition policies have led to substantial revenue losses without significantly reducing the negative consequences of drinking. Another study of Arunachal Pradesh’s finances identified the potential to generate more revenue from transactions on land and sales tax.

Additionally, there is a need to improve the tax administration in the States. Not only will this lead to higher resource mobilisation, but it will also reduce the deviation of actual from budgeted tax revenues. The States can boost their collection of non-tax revenues by revising the existing charges and rates for various services and enhancing administrative revenue collection efficiency. Many state public sector enterprises in these States are not in good shape and do not contribute enough revenue. The States must consider revitalising and corporatising these enterprises to improve their revenue performance. Some States such as Mizoram have closed down loss-making public sector enterprises, recognising that these entities are a liability.

Sarthak Pradhan is an Assistant Professor at the Takshashila Institution. The research for this article was made possible by The International Centre Goa Research Grants. Email ID: sarthak@takshashila.org.in

Source: “State Finances: A Study of Budgets”, Reserve Bank of India

Also read: Data | Friction over revenue sharing formula: Why some States get more money from Centre

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