NAGALAND BUDGET 2018-19: Rio Presents INR 1630.67 Cr. Deficit Budget - Eastern Mirror
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Nagaland

NAGALAND BUDGET 2018-19: Rio presents INR 1630.67 cr. deficit budget

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By Kohima Bureau Updated: Mar 24, 2018 1:07 am

CM presenting budget for 2018 19

Kohima Bureau
Kohima, March 23 (EMN): Chief Minister Neiphiu Rio on Friday presented an estimated deficit budget of INR 1630.67 cr. for the fiscal 2018-19 without proposing any new taxes, during the ongoing first session of the 13th Nagaland Legislative Assembly (NLA).
Presenting the maiden budget of the National Democratic Progressive Party (NDPP) led People’s Democratic Alliance (PDA), Rio, who also holds the finance portfolio, estimated total receipts at INR18232.51 cr. and total expenditure at INR 18305.40 cr. for the new fiscal.
He explained that with a negative opening balance of INR 1607.73 cr. and transaction for 2018-19 estimated to result in a negative balance of INR 22.94 cr., the year 2018-19 is estimated to close with a negative balance of INR 1630.67 cr.
The chief minister, in his speech lasting 110 minutes, said that the state’s projected share in Centrally Sponsored Schemes (CSS) is INR 3567.36 cr., of which MGNREGA alone is estimated at INR 1159.09 cr.
Other receipts from major schemes in CSS such as SSA and RMSA are projected at INR 406.95 cr. and NRHM at INR 173.34 cr. He also stated that INR 180 cr. was projected from NEC, INR 110 cr. from NLCPR and INR.115 cr. from Externally Aided Projects (EAP) during 2018-19.
Rio proposed a development expenditure of INR 4552.36 cr. including the projected CSS amount. He asserted that the state share to CSS projects continue to be a problem because of resource constraints. Nevertheless, he expressed optimism that the Central government was likely to consider 100% CSS funding for hilly states, particularly the northeast region.
The chief minister also pointed out that the state was plunged into a huge budgetary deficit due to the adverse award of the 13th Finance Commission (FC), standing at INR 1419.35 cr. as on March 31, 2015. This, he said, was coupled by non-release of full state specific grants amounting to INR 92.50 cr. although works were completed, and 40 projects approved by the erstwhile Planning Commission under SPA could not be fully released due to discontinuation of the commission, adding up more liabilities. “My government will endeavour from the government of India for release of INR 863.95 cr. which is pending under SPA,” he stated.
While acknowledging that even as the award of the 14th FC improved, he said it was just sufficient to meet the state’s revenue expenditure (RE) requirements, leaving insufficient resources for development requirements and clearing of liabilities created during the 13th FC.
With the 14th FC period to end in two years’ time, Rio pointed out that the centre has already constituted the 15th FC, which is expected to visit Nagaland within the next few months. He said the finance department has prepared requisite documents as well as memorandum to be submitted to the commission. He stated that the state government will raise the issues and specific needs of the state with the commission.
The main reason for the negative balance for 2018-19, he pointed out, is on account of the implementation of Revision of Pay (RoP) 2017 which was a huge financial burden, besides a negative opening balance of INR 1607.73 cr.
He said the percentage of non-development and salary had increased as the state government agreed to implement the new RoP 2017 in ilne with the 7th Pay Commission of the central government by giving notional fixation from June 2017 and actual cash payment from the pay of January 2018, to be impounded to the GPF accounts of the employees. As a result, he said a total amount of INR 1100.75 cr. was being spent, including for both serving employees (INR 854.94 cr.) and pensioners (INR 245.81 cr). “State government employees will have to be prepared to perform their responsibilities with sincerity and commitment, and not look for benefits,” the chief minister said sternly.
He also informed that despite huge investments by the government in setting up state corporations and undertakings, many were non-functional. Even during 2017-18, an amount of INR 44.34 cr. was spent by way of grant-in-aid to meet their establishment costs, Rio stated.
He proposed to have a serious look into the functioning of these corporations by setting up a committee and to close down non-performing ones by offering a one-time ‘golden handshake’ to its employees.
Budget 2018 19

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By Kohima Bureau Updated: Mar 24, 2018 1:07:26 am
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