Northeastern states aren’t comparatively rich due to several geographical, historical, political, economic, social, and cultural factors, most of which could have been surmounted with political will, realistic, pragmatic, and implementable policies, judicious utilisation of funds, and good governance.
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Among all Northeastern states, the average family in Nagaland, whether salaried or engaged in small private business, would probably suffer the most because the family budget has to stretch beyond food, rent, education, health, and other essential expenses
Monalisa Changkija
Northeastern states aren’t comparatively rich due to several geographical, historical, political, economic, social, and cultural factors, most of which could have been surmounted with political will, realistic, pragmatic, and implementable policies, judicious utilisation of funds, and good governance. However, here we are—with incomes incompatible with the cost of living. And now, with a needless war in West Asia, that incompatibility is even more pronounced, even as the value of the rupee declines, making it almost impossible to cook rice and roti. Indubitably, the impact of the said war has affected several countries, but for the Northeast, the impact would be bleaker, as we are basically dependent economies—perhaps with the exception of Assam.
However, among all Northeastern states, the average family in Nagaland, whether salaried or engaged in small private business, would probably suffer the most because the family budget has to stretch beyond food, rent, education, health, and other essential expenses, given that this demographic constitutes the vast majority of our population. Nagaland also has one of the highest unemployment rates in the country, which does not look likely to be addressed, much less resolved, any time soon. The outlook is bleak, and we are looking at escalating poverty if the root causes of our impoverished status are not addressed soon and if the war in West Asia is not halted at the earliest.
One of the reasons why Nagaland will suffer more is that there is one too many leaks in the family budget in the form of the perpetual cycle of extortion/taxation/donation/contribution. It is widely believed that extortion/taxation is carried out entirely by “national groups” or elements claiming to represent them. However, extortion has myriad faces here, and not all of them wear the “national groups” label. While technically some of these collections may fall short of the definition of extortion and thus be categorized as donations, in effect they are nothing short of extortion, albeit with a socio-cultural face. Recently, the state government banned check posts across Nagaland that had been set up by municipal and town councils to collect taxes on vehicles and even on goods for which GST had already been paid. One also recalls the State Forest Department having set up such posts. Thus, government departments, too, have been complicit in the collection of illegal taxes, donations, and contributions.
Other forms of extortion/taxation/donation/contribution include numerous membership fees collected by village, student, and women’s organisations, especially in urban areas, as well as “contributions” for annual village and range sports tournaments and fundraising for numerous events. Sometimes, fundraising is conducted by selling all kinds of food and other items door-to-door. Then there are clan membership fees, besides donations and contributions for annual general meetings, jubilees, and so on. Woe betide the family that is inter-tribal—then you pay double. We pay because we want to show allegiance to our village, clan, and causes, and we fear social stigma.
And then there is the church. Biblically, one is supposed to pay tithes—a tenth of one’s income. But over and above that, we also make donations and contributions for numerous church programmes and projects, including village or town churches and church-run school constructions. Envelopes are delivered to every home of a member family, clearly stating the purpose of the donation or contribution. The congregation does not complain—at least not publicly—because it is all for “God’s work,” and no one wants to incur the wrath of God. Some of these donations and contributions are annual. Some families contribute to several church construction projects—sometimes simultaneously. The church construction committee decides the amount to be paid depending on official rank and the size of businesses.
No one holds a gun to one’s head while collecting donations or contributions, but in a community where the collective is greater than the individual, the message is unambiguous—either you are one of us or you are not. Clearly, it is the community that financially supports social, cultural, and religious objectives, whether or not we believe they are necessary. Therefore, these contributions have been normalised as part of our societal life. It is also unclear whether these collections are made with government permission. Then again, governments are hardly likely to interfere because “it’s a part of our community life”—almost a tradition. However, district administrations have disallowed many calendar sales—often forced—and illegal lotteries organised by various elements.
We also have a distinct administrative set-up in which traditional village authorities wield significant power under Article 371(A), but there is ambiguity regarding the “financial powers” of student, women’s, church, village, and clan organisations, especially in urban areas. The fact is that all such unions operate under the aegis of village authorities and often on their behalf; therefore, their “financial powers” have effectively become a cultural free-for-all.
The absence of clarity on constitutional and legal boundaries has created loopholes that enable and embolden the proliferation and assertions of numerous organizations acting in the “interest” or “welfare” of one group or another. Unfortunately, no government here seems to have attempted to streamline or rationalise the “financial powers” of these organisations, mainly due to electoral considerations. Consequently, each family and household must augment income and stretch budgets. This creates scope for corruption, as well as illegal and fraudulent business practices.
Except for income tax, Nagas and other tribals pay all other taxes required by law; however, Nagas probably pay more than the equivalent of income tax through unwritten obligations. Herein lies one of the causes of our perennial impoverishment. Affluent individuals may not think twice about such contributions, but for those living on monthly paychecks, every paisa counts. We are often exhorted to save, but unless one has additional sources of income, saving remains an aspiration. Last year, a report noted increased investments in mutual funds in Nagaland, but it did not specify which class of people was investing.
Prices have been rising steadily over the past few years, compounded now by the war in West Asia—a region that shapes our energy security. Many countries will face similar concerns and will tighten their belts while plugging financial leaks. Alongside tightening our belts, it is urgent that we plug these gaping, income-draining holes. While this may not make us wealthy, it will reduce the leakage from family budgets in these uncertain times. There is also the need for fiscal discipline if we aspire to achieve some measure of economic equilibrium.
(The Columnist is a Dimapur-based veteran journalist, poet and former Editor of Nagaland Page. Published in the March 22, 2026 issue of North East Now)