Our Correspondent
Kohima | July 22
Nagaland Chief Minister Neiphiu Rio, who also holds the finance portfolio, today presented a deficit budget of Rs.603.64 crore. He explained that the current year’s transaction is estimated to result in a negative balance of Rs.5.94 crore. However, because of the estimated negative opening balance of Rs.597.70 crore, the year 2010-11 is estimated to close with the negative balance of Rs.603.64 crore, he said.
As regards the budget proposals for 2010-11, the estimate of gross receipt has been put at Rs.6416 crore and the gross expenditure at Rs.6434.83 crore for the financial year 2010-2011. Presenting the deficit budget, the Chief Minister proposed no new taxes for the current year but to stress upon better realization of revenues at existing rates. For internal revenue collection, the target has been put at Rs.369 crore as against the BE target of 2009-10 of Rs.321 crore, representing a growth of 15%, he stated.
“We will reward the departments or taxes department who reaches or overshoots the target and punish those who do not reach the target”, the Chief Minister cautioned while speaking to local media persons following his Budget presentation. Earlier during his Budget presentation the Chief Minister expressed concern that despite approaching the fifth decade of statehood, our resources can barely meet the salary expenditure for two months.
This, he said, is despite the fact that over the last ten years, the state’s own revenue has grown from Rs.88.70 crore during 2000-01 to Rs.321 crore in 2009-10. The government is, however, not satisfied with this otherwise impressive growth and has taken concrete steps to improve the state’s revenue further, he said and informed that he has held a series of meetings with revenue collecting departments to examine loopholes in the existing systems and take corrective measures and explore all possible options for mobilizing additional revenue for the state exchequer.
He also said the Cabinet has formally approved the measures suggested to improve revenue performance. He further assured that there will be strict monitoring of deductions and deposit of taxes by various departments.
Commenting on the current budget, he explained that a full budget could not be presented during the March session because the Annual Plan for the year 2010-11 could not be finalized with the Planning Commission pending the awards of the 13th Finance Commission and acceptance of the same by the Government of India.
He also explained that even after the recommendations of the 13th Finance Commission were accepted by the Central Government, finalization of the Plan Size for Nagaland for the year 2010-11 was delayed as it was found that the recommendations of the 13th Finance Commission resulted in an unfavourable award for the state.
The most serious problem, he said, was caused by the normative approach adopted by the 13th Finance Commission while assessing salary expenditure for the years covered by their award, he said pointing out that it fell far short of the actual requirement even on the pre-revised pay.
After meeting and explaining to him that the adverse situation faced by the state could not be overcome unless the Central Government made a special dispensation to meet the shortfall in salary expenditure, the Prime Minister graciously appreciated the position and assured that the Finance Ministry and Planning Commission would look into the problem as a result of which the State’s Annual Plan for 2010-11 could be finalized, he added.
Meanwhile, the Chief Minister has placed on record the state government’s gratitude to the Prime Minister, Union Finance Minister and the Deputy Chairman of the Planning Commission for appreciating the state’s difficulties, particularly its requirements on account of salary revision and generously considering its requests and also the Governor of Nagaland for his kind intervention on the state’s behalf.
Estimated Gross Receipts & Expenditures
The broad item-wise statement of the estimated gross receipts and gross expenditures are as under:
A. Receipts: (Rs. in Crore)
1. State’s own tax and non-tax revenue: 369.46
2. State’s share of Central taxes: 657.10
3. Central assistance (grants and loans): 4335.81
4. Internal debt (including market loans, institutional Loans and W&M advance from RBI): 1050.02
5.Recovery of loans and advances by state govt: 4.00
Total: 6416.39
B. Expenditure: (Rs. in crore)
1. Non-Plan expenditure (excluding servicing of debt): 2868.66
2. Servicing of debt (including W&M advance from RBI): 1218.27
3. State Plan expenditure: 1500.00
4. Expenditure on schemes sponsored by Ministry of DONER: 172.18
5. CSS and NEC sponsored schemes: 675.83
Total: 6434.83
C. PUBLIC ACCOUNT (Net): (+)12.50
D. CURRENT TRANSACTIONS (A+B+C): (-) 5.94
