Kohima, Sep 27 (IANS): Nagaland Chief Minister T.R. Zeliang has expressed confidence that the Narendra Modi-led central government would bail out the cash-strapped state which is groaning under a deficit of Rs 1,234 crore.

"We have apprised Prime Minister (Narendra Modi) and Finance Minister (Arun Jaitley) of Nagaland's financial constraints and the huge deficit that we have incurred. We have requested them to waive off the deficit," Zeliang said in an interview with IANS here recently.

The five-time legislator, who is heading the Naga People's Front-led Democratic Alliance of Nagaland coalition government, said the deficit of Rs 1,234 crore was a result of the "adverse recommendations" of the 13th Finance Commission.

Nagaland has over one lakh government employees whose salary constitutes about 65 percent of the total government expenditure, whereas the 13th Finance Commission recommended that no state should spend more than 35 percent on this account. It is practically impossible for us to achieve. Therefore a huge deficit has resulted which we could not bridge with our own resources, Zeliang explained.

"We have high hopes that the new government under the dynamic leadership of Modiji will rescue us by waiving off this deficit. The NDA government under Atal Bihari Vajpayee had bailed out Nagaland by waiving off a deficit of Rs. 365 crore," the chief minister added.

Zeliang, who also holds the finance portfolio, said that his government is planning to streamline its policies to plug the tax leakages and adopt new taxation strategies to generate more financial resources.

"Oil and natural gas is one of the areas where we can generate sizeable revenue," he said.

Zeliang, who took over as chief minister five months ago from Neiphiu Rio, who was elected Lok Sabha member from Nagaland parliamentary seat, said that his government has adopted measures to ensure rapid socio-economic development in the impoverished Eastern Nagaland.

"We have serious concerns on development of Eastern Naga areas. Being in far flung area, these are economically and educationally backward. We will try our best to bring some kind of special package to develop these backward areas," he said.

Further, he said that the government has proposed construction of four important roads - Chin Mahow to Yangchong, Pangsha to Hempu, Avangkhu to Leshi and Monyakshu to Yanching - to connect remote villages in Eastern Nagaland with Myanmar.

"Once these four roads are complete people living on both sides of the border will benefit socio-economically through trade and commerce. Our people in Eastern Nagaland and the Nagas living in Myanmar will be connected," he said.

The government has also envisaged a trade centre in Noklak and Pangsha along the India-Myanmar border, he said.

"This proposed trade centre will be a corridor for not only Myanmar & Nagaland, but for South East Asia too. Such trade centres can be established at 4-5 other important points. Similar centres are also being planned in Panshas and Avangkhu areas," he said.