Kohima, March 18 (MExN): Chief Minister Neiphiu Rio, who also holds finance portfolio, said that the total accumulated debt of the state government as on March 1, 2006 stands at Rs. 2895.71 crores. Replying this to MLA Taka Masa Ao, Rio said the government has been taking all necessary steps to avail of the debt relief recommended by the Twelfth Finance Commission.
The relief will be provided by the Ministry of Finance, after satisfying that the laid down conditions of maintaining the stipulated revenue surplus, containing the fiscal deficit at 2004-05 level etc. are fulfilled. The contemplated debt relief in the form of write-off of outstanding pre-31.3.2004 central government loans, is likely to be actually available only towards the close of the next financial years, after the AG’s Accounts for 2005-06 are published, the Chief Minister said.
On being asked whether the state government and all its departments were strictly adhering to the enacted fiscal responsibility legislation, Rio replied that the state government was making sincere efforts to adhere to the provisions of the Nagaland Fiscal Responsibility and Budget Management Act, 2005. However, he said this being a new concept, it will take a little time to firm up the details and put all the required mechanism in place for meaningful execution of the exercises required under the Act. All the departments were on the job and it is expected that the provision of the Act will be fully adhered to during the ensuing financial years and full reports, as required under the Act, will be presented along with the budget document starting with the next financial year, Rio said.
It may, however, be stated that the government was aware of its obligation, under the Act (i) to maintain the revenue surplus, (ii) to bring down the fiscal deficit to 3 per cent of GSDP by 31.3. 2009, (iii) to bring down the debt liability to 40 per cent of GSDP by the end of 2009-10, (vi) to contain the salary expenditure at 61 per cent of revenue expenditure etc. To achieve those objectives, the government is determined to gradually reduce the fresh borrowings, to pursue policy of restricting creation of new posts etc, during the coming years, Rio added.
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