• Nearly 80% of expenditure for non-developmental purposes
• Only 50% of CSS fund availed
Our Correspondent
Kohima | March 28
Chief Minister of Nagaland Dr. Shürhozelie Liezietsu, who also holds finance portfolio, today presented the Nagaland State Budget with an estimated deficit of Rs. 1437.84 crores for the year 2017-18.
While the current year’s transaction is estimated to result in a positive balance of Rs. 220.04 crores, the CM said that due the negative opening balance of Rs. 1657.87 crores, the year 2017-18 is estimated to close with a negative balance of Rs. 1437.84 crores.
Overall, the budget envisages a total expenditure of Rs. 16,365.17 crores from the Consolidated Fund of Nagaland during 2017-18. Out of this, nearly 80% of expenditure or Rs. 12,644 crore is for non-developmental expenditure (Non plan expenditure) while the rest Rs. 3,720 crore is for development expenditure (Plan expenditure).
Main thrust area of development
The main focus of the budget for 2017-18 is towards uplift of the poor and rural population, the CM said.
“The thrust of development expenditure is on the social sector, i.e. education, health, water supply etc,” Dr. Liezietsu told media persons after budget presentation.
Out of the total outlay, 39% is on the social sector, followed by rural development at 19%, and at 13% for Agri & Allied sector, he added.
As regards the budget proposals, the budget estimated gross receipts at Rs. 16, 657.26 crores and gross expenditure at Rs. 16, 365.17 crores for the financial year 2017-18.
He further stated that the State now has a number of Centrally Sponsored Schemes (CSS) and other Central Flagship schemes funded by the central government, which will henceforth provide the main thrust for development works in the state.
Dr. Liezietsu further stated for the coming year 2017-18, the State Planning Board has approved a sectoral allocation of developmental funds to the tune of Rs. 3720.51 crores, out of which, the central sector, namely, CSS & Central Flagship Schemes etc. account for Rs. 3070.51 crores, while the state sector, or the State flexible fund accounts for Rs. 650 crores, which is only about 17% of the total development outlay.
Out of the State’s flexible fund of Rs. 650 crores, he added, 10% State’s share of the central sector schemes have to be met. “This also means that if we are to fully avail the Central sector scheme as indicated above, we have to earmark not less than 50% of our state’s flexible funds towards meeting the state’s share of central sector schemes, which is a tall order at the moment, as out of this state’s flexible fund, we have to provide funds for our priority state schemes such as LADP, VDB Grant-in-aid, UADP, and also for completion of ongoing works earlier undertaken under the state sector,” he said.
Negligible fund for works under State sector
Dr. Liezietsu noted there is very little fund left for undertaking new works under the State sector and stressed on the need to economize the State’s non-plan revenue expenditures, while improving revenue mobilization so as to make more funds available for developmental works.
“We have to be particularly careful not to engage any person in excess of the sanctioned posts,” the CM maintained.
It was also stressed that the government departments should now focus more on effective implementation of centrally funded schemes and compete with each other in availing such funds, instead of squabbling over the allocation of the rather small State flexible fund.
“This will be the best way we can take forward the developmental process in the state on faster track. I am bit worried by the fact that during 2016-17, out of the Central funded schemes of around Rs. 3344 crores indicated to the state by the Central government, we have been able to access barely 50% till date. I feel we need to do lot of rethinking on this, and chalk out new strategies to improve our performance in availing central funds earmarked for our state,” the CM said.
Meanwhile, reflecting the changed financial arrangement and following the system adopted by the central government, the budget documents now classify the expenditures broadly as “Revenue Expenditure” and “ Capital Expenditure” and not as Non-Plan & Plan Expenditures as was done before.
