Service sector includes the public administration, transport, communication, banking, education, health, trade, hotel and restaurant, insurance etc. In Mizoram, Public administration is the main sector in the service sector. Service sector always accounted for the highest contribution to the state’s economy for a number of years. Infrastructure has played a key role in a developmental process of any country. The four layers of connectivity (viz. economic connectivity, physical connectivity, electronic connectivity and knowledge connectivity), good banking facility, quality education, better health services, favourable law and order condition etc are the key ingredients for a healthy and sustain economic growth. The absence of these services quickly and radically reduces quality of human life and their productivity. In certain area, Mizoram occupied a place of pride in national level. These areas include literacy, village electrification, provision of safe drinking water, infant mortality rate etc. However, in other areas Mizoram is still lacking behind as compared to other states.

The contribution of tertiary/ service sector to the state economy is illustrated in the following table. The table reveals that its contribution is hovering around 58% to 60% over the years. It was 59.90% in 2004-05, 58.07% in 2005-06, 59.64% in 2006-07, 59.00% in 2007-08, 59.44% in 2008-09, 59.96% in 2009-10 and 59.73% in 2010-10 to the Net State Domestic Product (NSDP).

The state government employed 53,653 persons as on 31.3.2010 consisting of Group A – 4,153; Group B – 17,184; Group C – 21,425; Group D – 9,829 and MR, Contact, Co-terminus and Officiating etc- 1,062 persons1. As on March 3, 2011, there are 46915 regular employees with 2421 Contract and 8410 MRs employees while there is 7173 vacant posts. Under various boards, Council and authorities there are 6663 regular employees while 1636 posts are laying vacant. 17,362 employees2 got salary under the Plan expenditure/ head as on April 2012 and the total salary payment under the Plan head for the year is Rs 125.93 crores. The lion’s share of the budget has been incurred for maintenance of government machinery. 38.58 % of the total budget was incurred for salary of government employees, 36.10% for developmental works and 25.31% for maintenance of government

1 Statistical Abstract 2011, Govt. of Mizoram 2 Group A - 1,476; Group B - 4,794; Group C - 1,043; Group D - 1,415; MR - 6,938; Work Charge - 717 and Contract - 979

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government machineries leaving 17.28% only for developmental works. Again, the percentage share of salary is 39.75% for 2012-’13 year (BE), however, the actual payment can be known only after the financial year (RE). The actual payment for the salary is expected to rise beyond the earmarked figure of 39.75%3. At the same time, as on 31st March 2012, there are 15,877 persons who enjoyed pension/ family pension from Mizoram government, and Rs 272.80 crores has been earmarked for the pension bill during 2011-12. In 2009-10, the state government spends Rs 1080.60 Crores for payment of salary of her employees. Apart from the salary, various components like MR, wages, rent for offices, vehicle expense, TA, stationary etc consumed a large part of the budget leaving a merge pie for economic development. For 2012-13 (BE), Rs 2057.76 is earmarked for salaries (Rs 1615.64 crore under Non Plan, Rs 416.15 under Plan and Rs 25.97 crore under CSS/NEC/NLCPR), and this salary component constitutes 39.73% of the total budget of Rs 5176.25 crore. Less than 20% of the total budget has been spent for the development works while more than 80% is used for running the government machinery like salary, wages, rent, vehicle maintenance, TA, MR, OC/OE, minor works, office furniture etc. At the same time, the contribution of public administration to the state economy was the highest as depicted in the table. It was hovering between 15% and 19% over the years.

Road communication is the most important mode of carrying goods and passengers within the state, inter-state and international borders along the Bangladesh and Myanmar. Therefore, roads serve as the most important means of communication, transportation of goods and passengers, and the lifeline of the State’s economy. The total length of all types of roads in Mizoram up to 31.3.2009 is 7805.46Km and road density is 37.03 Km/100 Sq Km. approximately, whereas the total length of roads in the beginning of 11th Five Year Plan (i.e 2007) was 6059.83 Km which was 28.36 Km/ 100 Sq Km. The density of road in Mizoram is still very low as compared to the average national level of 96.57 Km/ 100 Sq Km. There is a need for a quantum leap of investment in road sector to catch up with the national level of road density. Details of road density and

3 Budget-a mipui chan, PRISM Publication

Six (6) National Highways is passing Mizoram. NH No. 54 has been taken over by Mizoram PWD from BRO since 1st April 2010, 2-laning Projects with an investment of Rs. 90.55 crores on various National Highways viz. NH-154 (Bairabi- Bilkhawthlir), NH-54 (Aizawl-Silchar) and NH-44A (Aizawl - Mamit - Tripura) of approximately 210.00 kms is in progress since the last 5 (five) years and is expected to be completed shortly. A new 2-lane Highway of about 100.00 kms under Kaladan Multi Modal Transport Project costing Rs.502.24 crore is being undertaken and work is in progress, and it is targeted to be completed by 2014.

The implementation of World Bank Funded, Mizoram State Road Project was started from the last quarter of 2001-02. The final sanction amount of this project is Rs. 541.30 crores, the project includes the main project i.e. Aizawl-Lunglei Road via Thenzawl (168.00 kms) improvement and re-surfacing of the following roads:- (1) Kawlkulh - Ngopa Road, (2) Khawzawl-Biate Road (3) Chekkawn-N.Vanlaiphai Road (4) Lungsen-Chawngte Road (5) Zobawk-Haulawng Road, (6) Damdiai-Sialsuk Road, (7) Selesih-Thuampui Road and (8) Road Project under NEC There are 7 (seven) nos of on-going projects with a total sanctioned amount of Rs. 201.03 crores under NEC which are spilled over from 10th Five Year Plan. These are expected to be completed within 2012. Besides there are 3(three) numbers of road projects approved and being implemented during 11th Five Year Plan with a total approved cost of Rs. 214.03 crores. The project is targeted to be completed by March 2011.

2000-01. The main objective of the programme is to provide connectivity to all habitations with population of 250 & above for desert and hilly area, and 500 & above for plain area by way of making all weather road to promote their socio economic development. The scheme is a 100% Centrally sponsored scheme.

At present, a large number of private transport operators are in operations. The Maxi Cab service has taken possession of the earlier Bus services in almost every route, superseding the services of buses for passengers travelling throughout the length and breadth of Mizoram and to the neighbouring states. Till 2008-09, there were 1297 nos of Maxi Cab and 2901 nos of Trucks & Lorries on roads. The number of Motor Cab (Taxi) and Commercial Auto Rickshaw registered and servicing were respectively 4697 and 2103 up to 2008-09. The estimated contribution made by Transport (other than Railways) to the GSDP during 2008-09 is Rs. 76.36 crores.

The State Transport Buses carrying passengers and mails are plying in various routes, even to the far flung remote areas of the State in the interest of public service where private operators are reluctant due to uneconomical nature of operating a bus service. As on December 2010, the total strength of MST fleet was 53. In the meantime, regular routes covered by MST Buses are 17. During 2009-10, these Buses performed 6,028 trips travelling 12.21 lakh Kms. carrying 1,12,919 passengers. The revenue earned during 2009-10 was Rs. 198.44 lakhs against the target of Rs. 188.00 lakhs.

The total number of motor vehicles on road in the State up to the end of 2009-10 for both private and government vehicles was 80,135, the number of vehicles on road has increased by 10,304 (14.75%) over a period of one year as against 69,381 at the end of the previous year. Of the total number of vehicles in operation during 2009-10, 52.33% are two-wheelers while 36.94% were light motor vehicles (Motor Cab, Maxi cab, Motor Car, Jeep, Gypsy, Taxi etc), Truck and Lorries constituted 3.8% of all vehicles on road.

Railway line extends to Mizoram at Bairabi, near the Assam border measuring only 1.5 km from Katakal Junction. Passengers and goods arrive at this station once a day. Railways also play a vital role in carrying essential commodities to the State. Since all major towns are far off from Bairabi, the role of railways in the economy of Mizoram till today is almost negligible. The new railway line project from Bairabi to Sairang having a length of 51.38 kms was sanctioned in the railway budget 2008-09 at a total cost of Rs.510.34 crores. A Task Force on National Railway Project has also been constituted to function as a mechanism of continuous interaction between the Railway and the State Government.

The total number of Post Offices at the end of the year 2008-09 was 405. However, the number of post office as on March 2011 decreased to 400 as some post offices have been merged with the parent offices under the ‘matching saving scheme’. Some POs are being proposed to merge with revenue earning Post

4 This includes all types of vehicle registered in the state

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Bharat Sanchar Nigam Limited is the largest Telecommunication Services provider within the state of Mizoram. As on February 2011 there are 6,01,169 mobile phone connections in the state while there was 5,61,917 connection during February 2010 which is an increase of 6.98% from the previous year. Airtel has the majority of subscribers with 2,30,000 connections followed by BSNL with 1,32,436 connections. Detail district wise information is presented below.

The Secondary Switching Area (SSA) or Telecom District which is also the LDCA (Long Distance Charging Area) is made up of 9 SDCAs (Short Distance Charging Areas) and covers the entire Mizoram State. BSNL, Mizoram provide WLL (Wireless in Local Loop) telephone service through CDMA technology to the rural areas and scattered areas. connections are provided through WLL under USO funding. In this project one telephone connection rent free have to be provided at all the villages. Where the signals of WLL are not available VPT are provided with Direct Satellite Phone Terminal (DSPT). VPT have to be utilised by the villagers with a minimum call charges. Under this, 705 villages are provided VPT with WLL and 67 villages are provided VPT with DSPT.

The total bank branches functioning as on 31.3.2011 stood at 113 while there were 109 bank branches in February 2010, which is an increase of 4.59%. Up to February 2011, there are 62 branches of Mizoram Rural Bank, 29 branches of State Bank of India, 11 branches of Mizoram Cooperative Apex Bank Ltd., 2 branches each for UBI and Vijaya Bank. Bank such as IDBI, UCO, Bank of Baroda, Punjab National Bank, Syndicate, Central Bank of India, ICICI, Axis, HDFC Ltd and Yes Bank have one branch each. Developmental Financial Institutions like NABARD, SIDBI and NEDFi also have their presence in the State. The population served per branch comes to around 8175 in 2010 which is good when compared with the national average of 15,000. However, the location of branches in the State has been skewed in cities and urban centres. There are still many villages devoid of banking services even with a radius of 80-100 kms. The main reason being that there is generally small number of household in a village making branch banking unviable

The credit deposit (CD) ratio generally gives an idea about the extent to which deposit resources have been locally deployed to propel the economy. Though, in itself, it has its own limitations, nevertheless it gives a clue regarding the credit absorption capacity of the local economy provided other things remain favorable. The deposits, advances and CD ratio of the Commercial Banks, Rural Banks and Cooperative Bank in the State are given below.

The CD ratio in 2008-09 is 60.53% which declined to 51.62% in 2009-10. This is very low as compared to the national average of 75%. There are 36 ATMs in the State, of which 25 belong to State Bank of India and 5 belongs to Axis bank. 10 ATMs are in the rural area

Tourism exist a vast potential for promoting tourism in Mizoram. The picturesque landscape, the salubrious climate, the unique culture, the hills and forest could offer a vast scope for adventure-tourism, eco-tourism and the like. However, the State is yet to exploit these potential to transform Mizoram into an ideal tourist destination.

The state received 46,801 domestic tourists and 1,795 foreign tourists during 2008-09, as against 44,226 domestic tourists and 735 foreign tourists during the previous year (2007-08), there is a significant increase in the number of foreign tourists during 2008-09.

During the current 11th Five Year Plan State Government has undertaken development of 3 nos of Tourist Circuit & Destination viz. Sothern Tourist Circuit Phase II, Tourist Destination - Sakawrdai & Kanhmun through funding by Ministry of Tourism, Govt. of India under 100% CSS. The State Government has incurred an expenditure of Rs. 2874.95 lakhs for completion of these projects. The State Government has also identified another 5 nos of Tourist Circuit and destinations for which sanction has been obtained from Govt. of India.

The literacy rate of Mizoram has jumped from 36.23 % in 1951 to 88.8 % in 2001. The figure is further increased to 91.58% in 2011 occupying the 3rd position in the country. As per census of 2011, Serchhip district with 98.76% of literacy is the highest district literacy percentage all over the country. The male - female differential in literacy is very narrow figuring only 3.96% and 4.32% in 2001 and 2011 census respectively. 3.5.2 School Education: The main objective of School Education is the development of human resource to achieve academic excellence through education. Since the opening of the first experimental school in 1901 by the Christian Missionaries, the progress of education has been tremendous such that Mizoram occupied the 2nd and 3rd position in literacy percentage in 2001 and 2011 respectively. With continuing efforts made by the state government through SSA programmes, implementation of Mid-Day Meal scheme and Computer Aided Teachings (CAT), etc., there is a gradual advancement in the field of education.

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The number of Primary Schools (Class I - IV) has increased from 1,084 in 1989-99 to 1,782 in 2009-10 and enrolment has increased from 98,023 in 1989-99 to 1,56,396 in 2009-10, the increase rate of enrolment is 5.41% over the years. The number of teachers in Primary Education has decreased from 8716 in 2008-09 to 8477 in 2009-10.

The number of Higher Secondary Schools (Class XI & XII) has increased from 86 in 2008-2009 to 95 in 2009-10. The enrolment has correspondingly increased from 14649 in 2008-09 to 17049 in 2009-10, which is an increase of 16.38 %. The number of teachers has also gone up from 1058 to 1224 during the last two years.

Up to 2009-2010, there were 3711 number of schools at different level of education in the State. Out of these, 37.75 % are owned and managed by Central/State Governments; 31.50 % are Private Un-Aided; 25 % are Private-Aided and the rest 5.75 % which comprised of Primary and Middle Schools are

The Teacher-Pupil Ratio means the average number of students per teacher at a specific level of education during a given school year. At present, one teacher is considered to teach approximately 18 students at Primary School, 9 students at Middle School, 13 students at High School and 14 students at Higher Secondary schools. The availability of trained teachers is one of the most important indicators of quality education. While the percentage of teachers trained in Schools under State Government and local bodies is as high as 81.8%, the percentage of trained teachers in private unaided School is merely 5.6%, and that of Private Aided School is 25.2%

GER means the total enrolment in a specific level of education regardless of age, expressed as a percentage of the eligible official school-age population corresponding to the same level of education in a given school year. An increase in GER indicates a decrease in the number of drop-out students and out of school children in the state.

Drop-Out Rate is the percentage of students/pupils who dropped-out from a given grade or cycle or level of education in a given school year. As per reconstructed Cohort method the dropout rate during 2009-10 has been worked out to be 18.7% for Primary School, 6.5% for Middle School and 11.8% for High School.

SSA is being implemented in Mizoram since 2001-2002 with the objective of providing effective and relevant elementary education for all children between 6-14 years of age group

The objective of the scheme is to achieve a Gross Enrolment Ratio (GER) of 75 % for Class IX - X within 5 years by providing a Secondary School within a reasonable distance of every habitation, to improve quality of education imparted at Secondary level by making all Secondary Schools conformed to prescribed norms, and to remove gender, socio-economic and disability barriers and to make universal access to Secondary level education by 2017, ie., by the end of 12th Five Year Plan and Universal Retention by 2020.

The State is having one Central University known as Mizoram University. At present, there are 20 Government Colleges, 2 Deficit Colleges, 2 teacher training colleges, i.e., College of Teachers' Education (CTE) and Mizoram Hindi Training College (MHTC) [where degree courses in education is imparted for both in-service and pre-service], Collegiate Boys' & Girls' Hostel at Aizawl and Shillong, etc., 2 Polytechnics, i.e., Mizoram Polytechnic, Lunglei (MPL) and Women Polytechnic, Aizawl (WPA).

In order to reform the system of education, Government of Mizoram set up the Mizoram Education Reforms Commission (MERC) to recommend ways and means to raise standard of education and improvement of quality. This Education Reform Commission is the 2nd reformed commission ever constituted in India since Independence, the first one is the Indian Education Reforms Commission (1966) which is also known as The Kothari Commission (1966). The Mizoram Education Reforms Commission (MERC) had submitted its report to the government on 30th July 2010 scrutinize and make recommendation to the Government from the Report of the Mizoram Education Reforms Commission, determine those actions which are necessary to be taken up on priority basis from the recommendation of the Commission, prepare road map for implementation of the report of the Commission. The Group of Experts had submitted its report to the Chief Minister on February 28, 2011.

Health Services has been provided by the State Government through a network of 370 Health Sub-Centre, 57 Primary Health Centres, and 12 Community Health Centre. Despite the expansion of health delivery system in the State access to quality Health Services need improvement especially in rural areas where there are no private health providers.

The three major causes of death (medically certified or not) are Cancer, Asthma & Bronchitis and Malaria.

5 Fortunately, the author is the Secretary of the Group of Experts (GoE)

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Hospital with bed strength of 1101 and 12 nos. of Private Hospital/Nursing Homes with total bed strength of 828. The number of patient treated in Government Hospital OPD had increased from 4,83,269 during 2004-05 to 6,64,082 during 2008-09, an increase of 37% within 5 (five) years. With the ever increasing patient load in all District Hospitals there is an urgent need to upgrade the District Hospitals. Construction of two Accident & Trauma Centre one each, at Kolasib and Serchhip has been completed. Up to 2008-09 there were 300 Doctors, 726 Nurses and 992 Health Workers catering to the health of the people in the state.

There is still now has no Medical College in the State either under the Central Government or State Government undertaking. There is one College of Nursing recently established affiliated to Mizoram University and one Regional Institute of Paramedical & Nursing Science (RIPANS) at Aizawl funded by Central Government.

01. Presbyterian Hospital, Aizawl Nursing School 120 02. College of Nursing, Aizawl 117 03. Nursing School/Civil Hospital, Lunglei 63 04 School of Nursing, Christian Hospital, Lunglei 74 05. Apollo Nursing School, Aizawl 113

RIPANS 115

Recently, the State Government has decided to established 1(one) ANM School and 4 (four) GNM Schools in four District Capitals. Under National Cancer Control Programme, Regional Cancer Centre had been constructed at Zemabawk and inaugurated on 19.9.2010. Around 40 patients are given Chemotherapy treatment every day.

Government of Mizoram is implementing the so called the Mizoram State health Care Scheme (MSHCS) in 2008 for all its population excepting Government Servants and their dependents. At the same time, RSBY and BPL Scheme for the unorganized sector under the Ministry of Labour & Employment being implemented all over the country is linked with the MSHCS from 2010. Under the two schemes, a BPL family can now avail the usual RSBY cover of Rs. 30,000/- and an additional cover from MSHCS of Rs. 2.7 lakhs, thereby, making the total cover upto Rs. 3.00 lakhs. Moreover, APL (Above Poverty Line) families could avail critical illness cover up to Rs. 3.00 lakhs under MSHCS.

National Rural Health Mission (NRHM) was launched in Mizoram on June, 2005 by setting up a State Health Mission brought the Scheme of Reproductive and Child Health (RCH-II) as well as National Disease Control Programme and various family related activities under its umbrella. There are now altogether 943 ASHA under NRHM. 815 numbers of Village Health and Sanitation Committee has already been constituted each under the Chairmanship of Village Council President. As many as 512 personnel have been recruited on contract basis for programme management support out of which 147 were recruited during 2009-10.

staff quarters, the State Government has released Rs. 55.05 lakhs as untied fund and Rs. 43.50 lakhs as Annual maintenance fund to 370 Sub-Centres, 57 PHCs and 9 CHCs during 2009-10. The State Government has also released Rs. 79.00 lakhs to 8 Districts Hospital and 9 CHCs under Rogi Kaligan Samiti (RKS).

The State Government emphasis on upgradation of AYUSH educational standards, quality control and standardization of drugs, improving the availability of medical plant material, research and development and awareness generation about the efficiency of the system domestically and internationally. The State Government has constructed AYUSH building at Civil Hospital, Aizawl and 10 (ten) bedded AYUSH IPD ward at seven other Hospitals.

Congenial law and order condition is pre-condition for economic growth of a country/ state. Mizoram is the most peaceful state in India. The state has 38 police stations, 13 out posts, 9 check posts and 95 Wireless stations in 2010-11. Aizawl district has the highest number of police stations with 9 PSs while Serchhip district has only 3 PSs. However, there are only 9.78 PSs for Aizawl district while 39.32 PSs for Mamit district for 1,00,000 population. The following table presents the overall scenario of the state.

The increasing tendency of percentage of salary and government maintenance bill from the total budget is economically unhealthy and untenable. This calls for urgent administrative reforms by way of- b) Abolition of vacant posts lying unfilled-up for 3 years with the exception of Education, Health and maintenance of law and order c) Intra and inter – departmental rationalization of manpower d) Review of expenditure on its effectiveness on project/ programme wise e) Review of entitlements of officials/ Public leaders f) Efficient use of available resources and,