Nagaland’s expenditure jumps to Rs. 5000+ crore: CAG report

Our Correspondent
Kohima | March 24

The Comptroller & Auditor General has stated that the total expenditure of the state has increased from Rs. 2, 932.00 crore (in 2006-07) to Rs. 5313.37 crore (in 2010-11). The total expenditure during 2010-11 at Rs. 5313.37 crore increased by Rs. 1,069.13 crore (25.19 per cent) over the previous year. The figures are stated in the expenditure audit report of the CAG for Nagaland state published for year 2010-2011. 

Out of the total expenditure in 2010-11, the report says, revenue expenditure was 78.79 per cent (Rs. 4186.31 crore) while capital expenditure was Rs.21.13 per cent (Rs. 1122.94 crore) and loans and advances was 0.08 per cent (Rs. 4.12 crore). “The break-up of total expenditure in terms of plan and non-plan reveals that while the share of plan expenditure constituted 37.84 per cent (Rs. 2010.41), the remaining 62.16 per cent was non-plan expenditure (Rs. 3302.96 crore). The increase in total expenditure during 2010-11 over the previous year was due to increased of revenue expenditure by Rs. 935.15 crore and capital expenditure by Rs. 133.41 crore and disbursement of loans and advances by Rs. 0. 57 crore,” states the CAG. 

Likewise, the report stated that the non-plan revenue expenditure (Rs.3302.86 crore) was lower by Rs. 80.04 crore (2.37 per cent) during the year as compared to the projection made by the state government in its Fiscal Consolidation Roadmap (FCR) for 2010-11 (Rs. 3382.90 crore). The capital expenditure (Rs. 1122.94 crore) was also lower by Rs. 101.16 crore (8.26 per cent) as compared to the assessment made by the state government in its FCR (Rs. 1224.10 crore).

During the year, the CAG findings stated, 94.07 per cent of the total expenditure was met from revenue receipts and the remaining from capital receipts and borrowed funds. “The general service expenditure increased by 15.91 per cent (Rs. 282.53 crore) from Rs. 177.28 crore in 2009-10 to Rs. 2058.81 crore in 2010-11.Social services expenditure increased by 35.25 per cent (Rs. 373.19 crore) and economic services increased by 29.36 per cent (Rs. 412.84 crore).”

The pattern of total expenditure in the form of non-plan and plan expenditure during 2010-11 shows that they contributed 62.16 per cent and 37.84 per cent respectively. The non-plan expenditure increased by Rs. 627.36 crore as compared to the previous year due to increase in revenue expenditure under general services, social services and economic services by Rs. 261.84 crore, Rs. 239.29 crore and Rs. 139.12 crore respectively offset by decrease in capital expenditure under general services and economic service by Rs. 12.89 crore.

Further, the report states that the Plan expenditure increased by Rs.441.20 crore as compared to the previous year due to increased in revenue expenditure under social services by Rs. 112.83 crore, economic services by Rs. 184.97 crore, plan capital expenditure under general services by Rs. 24.00 crore, social services by Rs. 21.07 crore and economic services by Rs. 101.23 crore offset by decrease in revenue expenditure of Rs. 2.90- crore under general services. 

The expenditure on general services and interest payments, which are considered as non-developmental, together contributed 38.77 per cent in 2010-11 as against 41.85 per cent in 2009-10 and 37.07 per cent in 2006-07. On the other hand, the CAG stated, developmental expenditure (expenditure on social and economic services together) accounted for 61.17 per cent in 2010-11 as against 58.06 per cent in 2009-10 and 62.93 per cent in 2006-07. “This indicates that the non-developmental expenditure had increased by 1.69 per cent in 2010-11 as compared to 2006-07 while the developmental expenditure had decreased by 1.76 per cent over the same period,” the Auditor General stated.

The CAG findings say that the Revenue expenditure of the state had increased by Rs.1965.03 crore (88.46 per cent) from Rs. 2221.28 crore in 2006-07 to Rs. 4186.31 crore in 2010-11 at a compound annual growth rate of 13.51 per cent. 

“Both non plan revenue expenditure (NPRE) and plan revenue expenditure (PRE) have shown an increase over the period 2006-11. Out of the total increase of Rs. 935.15 crore in revenue expenditure during 2010-11 over the previous year, increase in NPRE contributed 68.46 per cent (Rs. 640.25 crore) while PRE accounted for the remaining 31.54 per cent (Rs. 294.90 crore.”

The increase of Rs. 640.25 crore in NPRE during 2010-11 over the previous year was mainly due to increase in general education (Rs. 140.89 crore), police (Rs. 91.23 crore), pensions and other retirement benefits (Rs. 56.91 crore), medical and public health (Rs. 55.41 crore), power (Rs.51.93 crore), interest payments (Rs. 31.81 crore), public works (Rs. 20.98 crore).