Our Correspondent
Kohima | July 7
Chief Minister Neiphiu Rio, who also holds the finance portfolio, today presented what he called, a “tax-free and people’s budget” with an estimated closing “negative balance” of Rs.494.23 crore. Speaking to newspersons after presenting the budget, Rio described the budget as the “peoples’ budget” aimed at ‘bringing accelerated development’ with 32% going to the social sector. He also termed the budget as a ‘tax-free budget’ proposing ‘no new taxes and no increase in existing taxes.’
According to his budget, the current year’s transaction is estimated to result in a deficit of Rs.22.92 crore. However, because of the estimated ‘negative opening balance’ of Rs.471.31 crore, the year 2009-2010 is estimated to close with a “negative balance” of Rs. 494.23 crore.
Explaining further, he said the gross receipt has been estimated at Rs.5238.37 crore, and the gross expenditure at Rs. 5276.79 crore under the consolidated fund, reflecting a deficit of Rs.38.42 crore. However, under the Public Account, the estimates have been put at a positive net balance of Rs.15.50 crore. Rio’s budget also proposes no new taxes. For the state’s internal revenue collection, he explained, estimates have been put at Rs.320.95 crore as against the budget’s estimated target of Rs.259.48 crore last year. This represents a growth of 23.69%, he asserted. Also, maintaining that the state’s average growth has shown 24% per annum, the chief minister however said the state’s tax revenue continues to be far below the 5% of GSDP and the Planning Commission has also impressed upon the state to strive to improve its revenue collection to 5% of the GSDP. Rio insisted that his budget was aimed at ‘improving the social sector’, health, power, water, housing, sports, development of backward areas and so on. It has also given highest priority to improvement of roads, he said.
Reacting to the Union Budget, Rio, while welcoming it, expressed dissatisfaction in two areas – Border Region Grant and the railways. He felt that the concern for the people of “backward” areas was not properly taken into consideration. Further, he felt that the state needs more coverage by the railways. Rio explained that he had already taken up the issue of connecting Dimapur and Tizit via Tuli paper mill, which he said, is an important economic belt and the lifeline for the people of six districts. He assured to continue to pressurize the Centre on the issue. The house will discuss the budget on July 9.
