Salary and wages account largest amount within revenue expenditure
Our Correspondent
Kohima | March 29
The Nagaland Economic Survey 2016-17 has informed that the budget 2016-17 estimated the total expenditure on consolidated fund at Rs. 13, 646 crore, which was 7.70% higher than 2015-16 (R.E) estimate of Rs. 12, 670 crore.
Increase total expenditure during 2016-17 (B.E) was mainly on account of the expected growth in both capital expenditure by 2.40% and revenue expenditure by 10.05% over 2015- 16 (R.E), the report stated.
Revenue expenditure, which accounts for 67.01% of the total budget expenditure in 2014-15 (Actual), has steadily increased to 69.33 % in 2015-16 (R.E) and is estimated to further increase to 70.84 % in 2016-17 (B.E). As a percentage of GSDP at current prices, revenue expenditure which accounted for 45.72 % in 2015-16 (Q.E) marginally increased to 45.77 % in 2016-17 (A.E).
Capital expenditure which is expenditure on capital works and investment in public assets is estimated to grow by 2.40 % in 2016-17 (B.E) accounts for 29.16 % of the budget expenditure and 18.84 % of GSDP 2016-17.
Developmental expenditure on revenue account
Out of the total revenue expenditure of Rs. 8784.21 crore in 2015-16 (R.E) and Rs. 9667.05 crore in 2016-17 (B.E), developmental expenditure which comprises of expenditure on social services and economics services accounted for 56.91 % in the revenue expenditure of 2015-16 (R.E) and 56.12% of revenue expenditure in 2016-17 (BE). In absolute terms, developmental expenditure for 2015-16 (R.E) was Rs. 4998.87 crore and during 2016-17 (BE) it is anticipated to increase to Rs. 5425.37 crore.
Non-developmental expenditure on revenue account
The non-developmental expenditure on revenue account which comprises of expenditure on general services of the government organization, fiscal services, interest payment and servicing of debt, administrative services, pensions and miscellaneous general services accounts for 43.09 % of revenue expenditure during 2015-16 (R.E) and 43.88 % during 2016-17 (B.E).
Salary and wages
Salary and wages which accounts for the largest amount within revenue expenditure increased from Rs. 3697.19 crore in 2015-16 (R.E) to Rs. 3972.49 crore in 2016-17 (BE). On percentage terms, salary and wages which alone accounted for 42.09% of revenue expenditure in 2015-16 (R.E) is expected to fall to 41.09 % during 2016-17 (B.E).
The percentage decline in salary and wages, despite increase in absolute mount spent on salary and wages is due to the increase revenue expenditure. As a percentage of total expenditure on consolidated fund, salary and wages accounts for 29.18% in 2015-16 (R.E) and 29.11 % in 2016-17 (B.E).
Pension and other retirement benefits
Pension and other retirement benefits which is the second largest component of revenue expenditure is estimated to increase from Rs. 1113.14 crore in 2015-16 (RE) to Rs. 1402.29 crore in 2016-17 (B.E). Pension and other retirement benefits as a percentage of revenue expenditure is estimated to increase from 12.17% during 2015-16 (RE) to 14.51 % during 2016-17 (B.E).
Interest payment
Interest payment which accounts for 7.49 % of revenue expenditure in 2015-16 (R.E) increased to 8.66 % in 2016-17 (B.E). In absolute terms, interest payment increased from Rs. 658.26 crore during 2015-16 (R.E) to Rs. 836.69 crore during 2016-17 (B.E) registering a growth of 27.10%.
Others
Others which comprises of travel expenses, office expenses, motor vehicles, rent rate & taxes, machinery & equipment, maintenance, material & supplies, rural development programme, special area programme, arms & ammunitions, ration & clothing (police, jails), advertisement & publicity, publication, legal fees, library, hospitality expenses, grant/assistance, discretionary grant of governor & ministers, etc. accounting for 37.75% of revenue expenditure in 2015-16 (RE) is estimated to decline to 35.75 % in 2016-17 (B.E). Others which amount to Rs. 3455.58 during 2016-17 (B.E) registered a growth 4.22% over that of 2015-16 (R.E) totaling to Rs. 3315.62 crore.
