Nagaland Chief Minister, Neiphiu Rio
Morung Express News
Kohima | March 28
Nagaland Chief Minister, Neiphiu Rio who is also the Minister-in-Charge of Finance said the last few years the quality of the state finances has shown substantive improvement.
Replying to the debates on the Budget for 2023-24 at the first session of the 14th NLA today, Rio maintained that despite the damage to the state economy due to the COVID-19 pandemic, the Budget of 2022-23 showed a positive balance of Rs 150.30 crore in the Current Account Transactions.
Even in the current budget for the year 2023-24, there is a positive balance of Rs 60 crore in the Current Account Transactions, which he said, is only due to the high withdrawals in GPF the current transactions show a minus balance of Rs 40 crore.
On deficit budget
Referring the news report indicating a closing deficit of Rs 1374.17 crore for the financial year 2023-24, Rio argued that due to the anticipated withdrawals of Rs 100 crore more than deposits in Public Account, the year 2023-24 is expected to end with a deficit of Rs 40 crore.
This amount, he explained is added to the Accumulated Deficit to arrive at the figure of Rs 1374.17 crore Closing Deficit. ‘When we compare this with the estimated closing deficit of Rs 2212.74 crore indicated in the Budget of 2022-23, there is a huge reduction in deficit by Rs 878.57 crore,’ Rio maintained.
The huge improvement was made possible on account of the huge release of CSS backlog as well as CD, claimed Rio while adding that in view of improved resources the state government was able to release the CSS backlog of Rs 728 crore during July 2022, and in the course of the year, an amount of Rs 150 crore of funds kept in CD. ‘Thus there was a huge reduction in liabilities.’
On reduction in budget size
While questions have been raised on the reduction of the Budget from Rs 24,239.50 crore in 2022-23 to Rs 23,085.66 crore for 2023-24, Rio justified the main reasons for this reduction as ‘we are estimating less borrowings of WMA by Rs 500 crore and have reduced our estimates of CSS receipts to make them more realistic.’
However, he added that in actuality there is an increase in expenditure by 7.10% of state own activities during 2023-24 over the budget of 2022-23. ‘Thus the reduction is more of a numerical correction rather a reduction in substantive activities,’ added Rio.
On completion of important projects
Rio informed the house that a DPR of Rs 177 crore was prepared, out of which Rs 20 crore has already been provided under Special Assistance during 2022-2 to make the main Athletic Stadium of the Multi Disciplinary Sports Complex (MDSC) at Dimapur functional. He also said that more allocation of funds will be considered in the coming days based on work progress.
Meanwhile, to facilitate timely completion of the New High Court building, he said Rs 30 crore has been provided under Special Assistance during 2022-23, and basing on the progress of the works, it shall examine providing of more funds in the coming days. The two multi-level parking in Kohima have been completed under Kohima Smart City Development Limited, and are ready for inauguration, he informed.
GST issues
On the GST issue raised by MAL Kuzholuzo Nienu, he clarified that Section 43 has been omitted in its entirety while Section 41 has not been omitted. Also on the issue of advance payment of GST on the bills to be released, Rio informed that the State Finance Department will examine it.
Petroleum Sector
While stating that Oil and Natural Gas exploration and extraction are very crucial for development of the State, Rio however, said that for many years Assam has been granting licences in DAB areas citing them as reserved forests.
On the objection and insistence by the Nagaland government, he said the Ministry of Home Affairs and MOPNG, Assam has agreed for sharing of Royalties in DAB areas ABC on a 50:50 basis for licenses already granted by Assam.
He said the state has also demanded that this dispensation should cover D, E, and F sectors of DAB as well. However, if this is arrangement is not possible, Rio said it has also agreed to keep the Royalty amounting in ESCROW Accounts till such time the matter is amicably resolved.
The state government, he informed has also taken a stand that DAB areas should be resolved first as Nagaland is already losing a huge amount of revenue.
The matter regarding resumption of oil exploration in rest of the State will be taken up later for which an MOU is to be signed between the State and Central Government whereby the rights of the State under Article 371(A) are adequately protected, he stated adding that it is currently awaiting the comments of central government and the learned advocate general.
Clarifying on the exploration activities at Tokishe and Nikike, Rio said that it has stopped all activities. He also informed that ONGC have requested permission to release the pressure accumulated inside to avoid bursting, since it will cause environmental damage.
Appointment of teachers
On the suggestion of appointing teachers to address shortfall under EAP programs, Rio pointed out that the ongoing Lighthouse Project funded by World Bank under the School Education Department is mainly for governance and management of School eco systems, and there is no scope for appointment of teachers under this scheme.
However, as many of the schools have Teacher shortages due to absenteeism, he said the department of School Education will undertake a rationalization exercise very soon to address the issue of Teacher shortages. ‘This issue will be addressed through the introduction of the “Teacher Attendance Monitoring App’ during the current year’ he informed.
On the suggestion of amending laws to re-designate the advisers as ‘Ministers of State’, Rio said it will have to be examined from a legal perspective to ascertain whether such a move is possible while reminding the members on the issue of ’Office of Profit’ that may ‘invite disqualification if we are not careful.’
Meanwhile, Rio welcomed the suggestion that Finance Department brief the members on financial issues adding that the State Finance Department is prepared to brief the members of the house in case they so desire, after the close of the financial year.
On the omission of JDU in his budget speech on March 27 relating to the letters of support extended by all political parties, Rio apologized stating ‘this is due to an inadvertent omission which is sincerely regretted. I request that this may be corrected in the records.’
The Chief Minister appreciated all members for their valuable views and opinions to add value to the debates and discussions on the floor of the House. He assured that he will look into the issues raised, and shall be given the importance they deserve, and appealed the members to continue to make positive contributions to the debates in the days to come.
