Our Correspondent
Kohima | September 23
The State’s Gross State Domestic Products (GSDP) decreased by Rs 233.10 crore (0.76 per cent) from Rs 29, 535.93 crore in 2019-20 to Rs 29, 312.83 crore in 2020-21.
This was stated in the State Finances Audit Report of the Comptroller and Auditor General of India for the year ended March 31, 2021, tabled at the 12th session of 13th Nagaland Legislative Assembly in Kohima on September 22.
The report stated that during the last five years, there was a steady increase in GSDP from Rs 21,722.45 crore in 2016-17 to Rs 29,535.93 crore in 2019-20.
The GSDP negative growth rate for Nagaland (-0.76 per cent) was higher than the all India GDP growth rate (-2.97 per cent) in 2020-21.
Service sector was the major contributor of GSDP during the year with 55.57 per cent.
Agriculture Sector was the second largest contributor with 30.70 per cent while Industry Sector (10.97 per cent) and Taxes on products - Subsidies on products (3 per cent) were third and fourth respectively.
During 2020-21, the State had a Revenue surplus of Rs. 375.37 crore which was 1.28 per cent of GSDP. Fiscal deficit was Rs 1,300.94 crore during 2020-21 which was 4.44 per cent of GSDP and primary deficit was Rs 444.17 crore, 1.52 per cent of GSDP.
The State's Revenue Receipts (Rs 11,427.43 crore) increased by 0.04 per cent (Rs 4.14 crore) over the previous year (Rs 11,423.29 crore), mainly due to increase in Own Tax Revenue (6.73 per cent) and State's share in Union Taxes and Duties (4.35 per cent).
The State's Own Tax Revenue (Rs 1,022.74 crore) increased by 6.73 per cent over the previous year (Rs 958.23 crore).
State's share of Union Taxes and Duties (Rs 3,409.25 crore) in comparison to the previous year Rs 3,267.08 crore) increased by Rs 142.17 crore (4.35 per cent).
Revenue Expenditure was Rs 11,052.06 crore and it decreased by 5.03 per cent (Rs 584.96 crore) over the previous year (Rs.11,637.02 crore).
State’s Revenue
The State's Revenue Deficit in previous year turned into Revenue Surplus, which was Rs 2375.37 crore for the year, mainly due to decrease in Revenue Expenditure (5.03 per cent) and marginal increase in Revenue Receipt (0.04 per cent), according to the report.
Capital Expenditure which was Rs 1,671.93 crore for the year, increased by 38.60 per cent (Rs 465.61 crore) over the previous year's expenditure of Rs 21,206.32 crore.
It was mainly due to increase in capital outlay under General Services (147.16 per cent) and Economic Services (29.22 per cent).
State's Total Expenditure
The State's Total Expenditure for the year, which was Rs 12,729.60 crore, decreased by 0.96 per cent (Rs 123.00 crore) over the previous year (Rs 12,852.60 crore).
It was mainly due to decrease in Revenue Expenditure (Rs 584.96 crore) offset by increase in Capital Expenditure (Rs 465.61 crore).
The State's Fiscal Deficit (Rs 1,300.94 crore) decreased by 8.91per cent (Rs 127.28 crore) as compared to previous year (Rs 1,428.22 crore).
The Government was successful in maintaining Revenue Surplus as projected in FRBM Act during the year but the Fiscal Deficit-GSDP ratio and Outstanding Debt-GSDP ratio were above the ceilings prescribed under the Act, the report stated.
Based on the result of examination of misclassification during post audit, the Revenue Surplus would reduce from Rs 375.37 crore to Rs 186.19 crore and Fiscal Deficit would increase from Rs 21,300.94 crore to Rs 1,451.96 crore.
Recommendations
The State Government needs to keep up the trend of Own Tax Revenue collection achieved during 2020-21 by focusing on other potential areas, apart from State Goods and Services Tax to have a sustained increase in Own Tax Revenues.
The State Government needs to make efforts to achieve the projections on deficit and debt parameters, made in the Nagaland FRBM Act.
