Nagaland CM clarifies on state’s increased deficit 

Nagaland CM clarifies on state’s increased deficit 
Nagaland CM clarifies on state’s increased deficit 

Nagaland Chief Minister Neiphiu Rio. (file Photo)
 

Blames reduction in state’s share of Central Taxes

 

Our Correspondent 

Kohima | February 15


Chief Minister Neiphiu Rio today said that the huge increase in deficit is on account of the reduction in the state share of Central Taxes in the Union Budget.


In his concluding remark on general discussion on the state budget here today,  Rio, who also holds finance portfolio, said that in the Budget Estimates of 2019-20 of the Union Government, the amount due to be transferred to the State of Nagaland as Share of Central Taxes for the year 2019-20 was shown as Rs. 4,206 crore.


However, in the Revised Estimates of the Union Budget presented on  February 1 2020, the Share of Central Taxes due to be paid to Nagaland has been reduced to Rs. 3,267 crore, which is less by Rs. 939 crore.


“Since we had already prepared our budget for the year based on the Budget Estimates of GOI, the reduced amount has become a deficit. Even then, because of improvements in our own revenues and savings, we managed to keep the deficit at Rs. 2,234.85 crore, he said.


Rio said that without improvement in the state’s revenue collections, the deficit would have actually been Rs. 2,551.01 crore.


“Had there been no reduction in our share of Central Taxes, our deficit would have been reduced to Rs. 1,296 crore,” Rio said.


He also pointed out that on account of reduction in the Share of Taxes by the Central Government, the neighbouring states Assam lost Rs 6243.45 crore, Arunachal Rs 2583.53 crore, Manipur Rs. 1163.34 crore, Meghalaya Rs 1210.59 crore, Sikkim Rs. 692 crore and Tripura Rs 1210.59 crore.


“It is not an isolated problem, and all states are likely to experience increase in their levels of deficit to the extent of reductions. It is clear that we are not going to get everything paid by the Central Government, and there is no guarantee that we will continue to get what has been budgeted. It is time we start taking steps towards self sufficiency not matter how small it may be,” Rio said.