Nagaland orders probe into ULB fund use amid salary delays, raises concerns over accountability, revenue gaps and governance issues
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KOHIMA — Nagaland government has ordered departmental inquiries into the utilisation of grant-in-aid by municipal councils following reports of employees going unpaid for months.
Advisor for Urban Development and Municipal Affairs Zhaleo Rio said the move comes amid recurring salary delays in urban local bodies (ULBs), including Dimapur Municipal Council (DMC) and Kohima Municipal Council (KMC).
Speaking to media persons on the sidelines of an event, Zhaleo said that the government had released a little over INR 5 crore to DMC and over INR 3 crore to KMC prior to the 2024 ULB elections to clear pending salaries after both councils sought one-time assistance.
“Within a few months, again, they are coming with the same problem. This government cannot tolerate,” he said, adding that such one-time grants cannot be extended repeatedly.
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On whether the funds were misutilised, Rio said there was “no proof” at present but that the department would examine the matter in detail.
“We can say they are not functioning effectively...But at least I can vouch with confidence that DMC, KMC, MMC — if they cannot survive, then something definitely is going wrong. And we are very serious about this,” he said.
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He noted that ULBs are expected to rely primarily on their own revenue generation, supplemented by state support and central funds, including those under the 15th Finance Commission.
While acknowledging constraints such as low revenue base in some towns, he said that councils should not run into deficits if they function effectively with transparency and accountability. He added that Mokokchung Municipal Council (MMC) was performing relatively better compared to others.
Zhaleo also pointed out that with 39 ULBs in the state, resources are thinly spread, limiting visible developmental work.
On the KMC chairperson and his deputy stepping down earlier this year, he said that the government has accepted it and the election of new leadership now rests with the councillors.