Morung Express News
Kohima | March 16
The finances of the State during 2005-06 were very stable and through prudent financial management, the flow of funds to the executing departments has been made more systematic and regular.
“This has improved utilization of funds and execution of schemes, reducing the tendency of clubbing of plan expenditure at the end of the financial year,” Governor Shyamal Datta said in his address at the budget session.
The prudent fiscal management and polices of my government were appreciated and commended by the Governor, Reserve Bank of India, Datta said adding “this tribute, commendable as it is, casts an onerous responsibility for maintaining utmost discipline in the management of all financial transactions, and there be no complacency in this regard.”
Referring to the adoption Valued Added Tax in the state along with other states, Datta said “The new VAT regime is expected to reduce leakage of revenue and enhance the resource mobilization of the state, and efforts are underway to streamline the system for more efficiency and transparency.”
The enactment of the Nagaland Fiscal Responsibility and Budget Management Act, 2005 has been a right step towards enforcing discipline in financial transactions as the Act contains provision to outline a fiscal correction path and to monitor various fiscal indicators, Datta added.
Governor also informed that there was an enhancement in the credit deposit ratio in the state, from 15 per cent in 2002-03 to 27 per cent during 2005-06. “This is a commendable achievement and I am confident that the position will further improve, if the present atmosphere of structural reforms in financial management is maintained in the state,” Datta continued.
For the welfare of pensioners and family pensioners in the state, Datta said, “My government has revised the pension and family pension to 50 per cent and 30 per cent respectively of the Minimum of revised scale under the Nagaland ROP Rules 1999 for all state pensioners and Family pensioners irrespective of the date of retirement with effect from Ist June 1998.”
He also stated that the government has also implemented 5th Central Pay Commission recommendation for the merger of Dearness Allowance/Dearness Relief equal to 50 per cent of the existing pay/pension as Dearness Pay/Dearness Pension with effect from Ist April, 2004.
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