In a significant move towards fiscal discipline, the Mizoram government has accepted a comprehensive set of recommendations aimed at overhauling the state's financial management and accelerating development. The proposals were presented by a special study team to Chief Minister Lalduhoma in Aizawl.
Key Recommendations and Phased Clearance of Liabilities
The high-level team, led by the Chief Minister's adviser, TBC Lalvenchhunga, conducted a thorough evaluation of the state's financial practices. Their primary focus areas included examining committed liabilities, improving the quality of Detailed Project Reports (DPRs), enhancing Goods and Services Tax (GST) revenue collection, and reviewing deductions from contractor profits.
Chief Minister Lalduhoma commended the team's exhaustive work, stating that implementing these suggestions would lead to more effective administrative systems, prevent revenue leakage, and speed up developmental projects across Mizoram. He directed officials to ensure the swift execution of the approved recommendations.
A major concern addressed was the clearance of existing departmental liabilities. The study team proposed a structured, phased approach to settle outstanding dues. According to the plan, the Public Works Department (PWD) will clear its liability of Rs 5.83 crore within the current financial year. The Power and Electricity department has been given a two-year timeline to settle Rs 12.62 crore, while the Public Health Engineering (PHE) department will clear its substantial liability of Rs 58.07 crore over a period of three years.
Preventing Future Financial Strain
Beyond clearing old dues, the committee emphasized the critical need to prevent the accumulation of new liabilities. To achieve this, they recommended instituting strict control measures. One key proposal is making prior approval mandatory for all emergency works, ensuring expenditures are authorized and budgeted for in advance.
The team also put forward several other recommendations for strengthening governance. These include standardizing the preparation of Detailed Project Reports to ensure better planning and cost estimation, revising the PWD's Schedule of Rates (SOR), and taking concrete steps to strengthen GST collection mechanisms to boost the state's own tax revenue.
Study team chairman Lalvenchhunga confirmed that the state government has accepted all the recommendations put forth by his team. The briefing session was attended by key ministers and senior officials, including Power and Electricity Minister F Rodingliana, PHE Minister Prof. Lalnilawma, Planning and Finance Secretary Vanlaldina Fanai, and officers from the works and taxation departments, signaling a whole-of-government approach to the proposed financial reforms.
