Morung Express News
Kohima | March 27
Chief Minister Neiphiu Rio today said that the total outstanding debt of Nagaland at the close of the next year is estimated to be around Rs. 3700 crores. “This is a huge amount but we cannot be said to be in a debt trap,” Rio said while replying to the budget adding that our current debt; GSDP ratio is below 44 per cent as against our FRBMA target of reducing debt: GSDP ratio to 40 per cent by the end of 2009-10.
“I reiterate that the loan is an integral part of the scheme of financing approved by the Planning Commission and that we do not borrow any amount beyond what is approved by the Planning Commission and the Ministry of Finance, Government of India,” said Rio.
Referring to the allegation that release of funds has been withheld so as to avoid overdraft and embargo, Rio said “This is entirely untrue. By the end of December 2006, more than 62 per cent of the available plan fund was released to the executing departments, which is a good achievement even by national standards.”
All schemes/works completed during the year have been paid for, Rio said adding no proposal for release of funds has been refused on account of non-availability of cash balance. On questioning as to why developmental expenditure as percentage of total expenditure has gone down since 2002-03 in spite of the fact that the effect of Fifth Pay Commission ROP had to be absorbed in 2002-03, Rio said “The developmental expenditure has not gone down, it was 31.56 per cent of total expenditure in 2002-03 and 39.52 percent in 2007-08 and the effect of 5th ROP was absorbed in 2002-03 and it continues to be a recurring burden (around Rs. 200 crore per annum) since then.”
“The increase in salary expenditure from Rs. 752.95 crore in 2002-03 to Rs. 1088.44 crore in 2007-08 has also been commented upon. This is quite normal,” Rio said adding that the annual growth was below 8 per cent which covers about 3 per cent annual incremental growth and average 5 per cent increase in DA expenditure.
Creation of new posts has been virtually stopped yet the increase in salary is a natural and an inevitable phenomenon, Rio added.
On questioning as to how deficit was continuing each year in spite of more than Rs. 350 crore plus award of the 12th Finance Commission, Rio said “It needs to be clarified that the Finance Commission recommends the grants on the basis of their assessment of the revenue gap of the state. That there should be no further deficit is the hypothesis which has not come true, especially in the case of TFC, for the following results; (I) TFC assessed our tax revenue based in potential but actual collection is about Rs. 65 crore less each year, (II) TFC estimated that there would be no loss under power and NST. The annual loss is in fact around Rs. 65 crore and (III) TFC estimated DA expenditure at 4 per cent per annum which in reality has crossed 7-9 per cent per annum which translate to about Rs. 40 crore additional expenditure per year.”
Rio stated that the C&AG Report 2005-06 is only laid before the House during the assembly session, adding that will be examined by the PAC. “Government will scrutinize and furnish replies,” Rio said adding that final action will be recommended by the PAC.
He said that it will be premature at this stage to comment on the Report of the C& AG 2005-06, adding “it would therefore be premature to go into this and also would be an infringement on the Authority of PAC.” Rio also claimed that the impact of Years of the Farmer has been substantial, adding the commercial scale productivity has been achieved in ginger, passion fruits, pineapple, banana and flowers. Exports have started in the State. In the last 2 years Multi National Corporation and others are stepping in to buy our agricultural products.
By 2015-2020, we expect industries especially agro based industries to emerge in the state, Rio added. Referring to the Vision 2020, Rio asserted that it should be the endeavour for all to try to implement the vision that has been laid down and constructive criticism, suggestions is welcomed and if necessary the vision documentation can also be reviewed.
Touching on Bamboo plantation programme, Rio said that it was the policy of government not to give blind subsidy for cultivation of bamboo but to set up Village Bamboo Development Committees to whom Village Bamboo Fund would be provided for use as a revolving fund for development of bamboo within their respective village jurisdiction and these are being made operational.
.jpg)
