The Nagaland government has constituted the Third Nagaland State Finance Commission, as per the Finance Department Notification No. FRC-3/SFC/2022 dated 20.03.2023, under the chairmanship of Menukhol John (Retired Principal Secretary to the Government of Nagaland). The commission's mandate is to make recommendations covering a three-year period, commencing on April 1, 2023 to March 31, 2026, pertaining to the various matters, an official statement said.

The matters include the principles governing the distribution of the net proceeds of taxes, duties, tolls, and fees leviable by the state, which may be divided between the state and municipalities. The determination of taxes, duties, tolls, and fees that may be assigned to or appropriated by the Municipalities, as well as the grant-in-aid to the municipalities from the consolidated fund of the state. Measures required to improve the financial position of municipalities. The rates of various taxes, tolls, and fees that may be raised by the municipalities, along with the method of determining the same, the statement also said.
Any other matter referred to the commission by the government in the interest of sound finances of municipalities.

In formulating its recommendations, the commission has been asked to consider various factors, including the objective of balancing the receipts and expenditure of the state government and local bodies, generating surplus for capital investment, the resources of the state government, and demands thereon, particularly in respect of expenditure on civil administration, maintenance and upkeep of capital assets, maintenance expenditures on plan schemes, and other committed expenditure or liabilities of the state. The commission will also take into account the requirements of the municipalities, their potential for raising resources, and avenues for reducing expenditure, it added.

The commission has invited suggestions/views on the above-mentioned issues from the general public, institutions, and organizations. Interested individuals and entities can submit their suggestions/views to the commission through post, addressed to the member secretary, the Third Nagaland State Finance Commission, Directorate of Treasuries and Accounts Building, First Floor, New Capital Complex, Kohima, Nagaland, or via email to thirdnagalandfincom@gmail.com. The deadline for submission is September 15, 2023. The commission believes that the valuable input received will contribute to better service delivery by municipalities and town councils, the statement further added.