Our Correspondent
Kohima | March 17
Nagaland State Chief Minister, TR Zeliang, today presented a negative opening balance of Rs. 1419.35 Crore at the Nagaland State Budget presentation for 2016-17.
The CM however chose to gloss over the deficit by presenting and lauding a positive balance of Rs. 71.62 Crore from the current revenue. With an opening deficit of Rs 1542.71 Crore, the CM reveled in the fact that the enormous deficit had been reduced by a “projected” amount of Rs. 123.36 Crore, resulting in a current deficit of Rs 1419.35 Crore.
This was hailed as the “first time after many years” that the House has been able to present a full budget. This is the “first time in the recent history of our State where the deficit could be reduced to this extent during a single financial year,” he said.
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The CM attributed this to the replacement of the Planning Commission by NITI Aayog and the change in the pattern of fund flow from the Centre to the States. This, the CM stated, has enabled the State Government to release all pending civil deposits in the current financial year. “With the new system, for the first time after many years we are presenting a full budget for 2016-17 in the month of March,” he said.
The CM expressed hope that the current deficit would be further reduced by Rs. 225 Crore, which is the estimated positive balance by the end of 2016-17.
He aimed to do this with better monitoring and control and various austerity measures being worked out. This however will be subject to the Government of India providing grant of Rs. 3016.31 Crore under share of Central Taxes as projected in the present budget.
Even if the deficit is reduced, as estimated, 2016-17 would still end with a closing negative balance of Rs. 1194.35 Crore.
Meanwhile, the gross total budget presented by the CM was Rs. 13658.75 Crore. Gross receipts for 2016-17 have been estimated at Rs. 13,870.98 Crore and gross expenditure at Rs. 13,645.98 Crore.
The bulk of the estimated revenue depends on the Center releasing the State’s share in central taxes amounting to Rs. 3016.31 Crore; and central grants and loans amounting to Rs 6775.69 Crore. To this, the internal revenue collection of the state is being estimated at Rs. 776.90 Crore, receipts of internal debt (including WMA from RBI) at Rs 3299.20 Crore and loans and advanced recovery of Rs. 2.88 Crore.
The Annual Plan Outlay for 2016-17 has been projected at Rs. 3924.47 Crore. This consists of Rs. 2882.41 Crore as CSS, Rs. 117.06 Crore as NEC, Rs. 230.00 Crore as NLCPR, Rs. 115.00 Crore as EAP and Rs. 580.00 Crore as untied or flexible fund.
Out of this outlay, Rs. 1519.38 Crore (38.72%) has been allocated for the social sector; Rs. 1903.01 Crore (48.49%) for the economic sector; and Rs. 502.08 Crore (12.79%) for the general sector.
The CM specifically pointed out that necessary fund support has been given for introduction of post graduate courses at the Kohima Science College Jotsoma in Mathematics, Physics, Botany, Zoology, Geology and Anthropology from the next academic session.
The internal revenue collection during the current year was put at Rs. 665.06 Crore as against last year’s target of Rs. 593 Crore, an increase of 12.15 per cent. However, because of “improvements made in some sectors,” this figure has now increased to Rs. 683.02 Crore in the revised estimates for 2015-16, an improvement of 15.18%.
While the previous year’s budget had several tax increases, this year saw no new taxes. The CM however stated that the tax collection system in the State will be “improved.”
Further, in continuation of the rationalization and codification of the Demand for Grants from 2015-16, more “improvements” have been made in the 2016-17 budget, where there is no separate column for Plan and Non Plan funds, but which can be identified by use of the classification code. He added that an abstract of head-wise detailed fund provisions has been indicated for easy and ready reference.
This, he said, will facilitate the computerization of the transactions of all DDOs and Treasuries in the near future. He hoped that this would help improve quality of Accounts, improve monitoring and control of expenditure.
Measures to reduce overhead expenditure
To bring down overhead expenditures, the CM said various measures will be undertaken. He said departments having excess employees shall not be allowed to recruit new employees even against resultant vacancies as was done in the case of School Education Department. Another measure would be rationalization of man power management, and relocation of employees from departments that have surplus to departments that require more manpower.
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The State Government spends about Rs. 85.00 Crore annually for payment of leave encashment to retired employees. He observed that most of the retired employees get full benefits of 300 days of leave encashment although many may not be regular in their duties. “This has a huge financial impact on the State Government. The Government will, therefore, be examining the possibilities of either reducing the entitled number of days for leave encashment, or allowing retiring employees to avail the entitled leave before retirement,” he said.
Meanwhile, NLA Speaker Chotisuh Sazo said the general discussion on budget presentation will be taken up on March 18.
