RBI cautions Nagaland on fiscal deficit

.....All rejoicings aside, , the RBI report sufficiently implies that Nagaland being a no-revenue state seriously requires a drastic paradigm shift in internal revenue generation or the deficit would pull her down the finances scrap yard. “All special category States with base fiscal deficit of less than 3 per cent of GSDP in 2007-08 could incur a fiscal deficit of 3 per cent in 2011-12 and maintain it thereafter. Manipur, Nagaland, Sikkim and Uttarakhand should reduce their fiscal deficit to 3 per cent of Gross State Domestic Product (GSDP) by 2013-14,” the study of Reserve Bank said.
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