Our Correspondent
Kohima | February 18
The Nagaland Fiscal Responsibility and Budget Management (Amendment) Bill, 2021 have been introduced on the floor of the House today.
The introduction of this bill was moved by Chief Minister Neiphiu Rio.
NLA Speaker Sharingain Longkumer informed that the consideration and passing of the Bill will be taken up on February 19.
Sub –clause (ii) of clause (2) of Section 9 of the Nagaland Fiscal Responsibility and Budget Management (Amendment) Act, 2005 provided for bringing down the fiscal deficit to 3 per cent of projected Gross State Domestic Product (GSDP).
In view of the serious negative impact of the resources of both the central and state governments due to unprecedented COVID-19 pandemic, the Central Government has decided to provide additional borrowing limit of upto 2 percent of GSDP for the year 2020-2021, Rio stated in the statement of objects and reasons.
Rio stated that the Fifteenth Finance Commission in their report have recommended fiscal deficit of 4 per cent for 2021-22; 3.5 per cent for 2022-23 and 3 per cent thereafter for the state government. Hence, the proposed amendment.
During 2019-20, in view of the adverse economic condition in the country, the revenue receipts had reduced leading to increased fiscal deficit in the state. Hence, the proposed relaxation by 2 per cent for 2019-20, Rio stated.
On financial memorandum, it stated that Nagaland Fiscal Responsibility and Budget Management (Amendment) Bill, 2021, if enacted and brought into operation in the state, shall not evolve any additional expenditure from the consolidated fund of the state.
