More than 90 per cent of the state's funds were granted by the Centre.
The state has been going through a bad financial condition not only because the Central government was yet to come clear on the NITI Ayog or discontinuation of the special category status from Nagaland, but also because "we are unable to generate our own resources," Swu said.
The Minister was addressing a gathering of students and villagers during the inaugural function of a four-day long 44th general conference of Sumi Aphuyemi Kiphimi Kuqhakulu (SAKK) at Asukiqa under Pughoboto sub-division, Zunheboto district of the state, some 70 km from the state capital.
The minister was of the view that the educated youths and government employees should go back to the villages and play pivotal role in reviving three basic things in the village councils - village councils need to be strengthened by reviving the system of accountability, transparency and honesty in carrying out different developmental programmes.
If such revival takes place and were established properly in the villages, the society would progress and develop, he said.
The conference would conclude on January 15.
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