The Government of Nagaland is planning to cut the salaries of its government employees to generate the funds required for development projects.
The people of this north-eastern state do not pay any income tax nor are they required to pay property tax. However, they benefit from all the facilities provided by the Government, just as the residents of other states of the country. The only professional tax that the people of Nagaland pay is a very small amount. Even though it has been suggested many a time that this amount should be increased, no action has been taken in this regard by the Centre till date. This is probably because an amendment will have to be made in the Constitution to make this happen, and that will require time and effort.
Therefore, left with no other option, the chief secretary of Nagaland has revealed that a salary cut is being considered for the government employees, so funds can be generated to develop infrastructure.
Nagaland has been trying to get investors to invest in the state, but owing to the special provisions (371A) and the protection given to tribal land, investors are discouraged. Land is not accepted as collateral, which is a big hurdle.
While support has been received from various political leaders for this suggestion, the proposal is yet to be finalised after considering the legal implications.