Transactions estimated to result in positive balance of Rs 225 cr

Our Correspondent KOHIMA, MARCH 17 Chief Minister TR Zeliang on Thursday announced that the transactions for the year 2016-17 is estimated to result in a positive balance of Rs.225 crores. Presenting the budget for the fiscal 2016-17 in the ongoing 11th session of the 12th Assembly, the Chief Minister who also holds the additional charge of Finance minister, estimated the gross receipts at Rs.13,870.98 crores and gross expenditure at Rs.13,645.98 crores for the fiscal year 2016-17, resulting in the unusual surplus balance. With a negative opening balance of Rs.1419.35 crores, he said the year is estimated to close with a shortfall balance of Rs.1194.35 crores. Zeliang stated in his budget speech that the target for internal revenue collection during the current year was set at Rs.665.06 crores as against last year’s, but owing to improvements made in some sectors, the figure has now increased to Rs.683.02 crores in the Revised Estimates (RE) for 2015-16, seeing an improvement of 15.18%. For the financial year 2016-17, the internal revenue collection is being estimated at Rs.776.90 crores, which is an increase of 16.82% over the previous year’s RE. The Chief Minister said the Annual Plan Outlay for 2016-17 has been projected at Rs.3924.47 crores, 8.35% higher than last year, consisting of Rs.2882.41 crores as CSS, Rs.117.06 crores as NEC, Rs.230.00 crores as NLCPR, Rs.115.00 crores as EAP and Rs.580.00 as untied or flexible fund. Out of the total amount of the Annual Plan Outlay, he informed that allocation for the Social Sector is Rs.1519.38 crores (38.72% of the total outlay), Rs.1903.01 crores for the Economic Sector (48.49%), and Rs.502.08 crores for the General Sector (12.79%). This, he said, was done in line with the change in pattern of fund flow from the Centre to the states which allows the states to decide their Annual Plan Outlay, after getting information from the Centre the amounts earmarked for the state under various CSS. Zeliang pointed out that in continuation with the process of rationalization and codification of the Demand of Grants from 2015-16, more improvements have been made in the 2016-17 budget where there is no separate column for Plan and Non-Plan funds but can be identified by use of the classification code. The process is expected to facilitate computerization of transactions in all DDOs and treasuries soon and will, in turn, help improve the quality of accounts, monitoring and control of expenditure, he added. With better monitoring and control in place and also with various austerity measures that are being worked out, the Chief Minister expressed hope of reducing the deficit by Rs.225 crores by end of 2016-17. “However, this will be subject to the Government of India providing us grant under share of Central Taxes as projected in our budget 2016-17, at the level of Rs.3016.31 crores,” he asserted. Stressing that the first year of the 14th Finance Commission award period is “certainly better and more realistic” as compared to the awards of the 13th Finance Commission, Zeliang reminded that the latter had ended with a huge deficit of Rs.1542.71 crores which resulted in beginning the current fiscal with serious cash management problems. He highlighted that despite the huge deficit, the state has been able to avert a severe financial crisis so far and managed to disburse all normal recurring expenditures like salaries, pensions, medical reimbursements etc, except for those employees appointed under CSS and flagship programs which is mainly due to non receipt of funds from the Centre. He also announced that almost all the proposals kept in civil deposit and backlogs during the year were released. Stating that this could be the first time in the recent history of the state to where the deficit could be reduced to the extent of Rs.123.36 crores, the Chief Minister acknowledged his colleagues and the departments particularly the Finance department for making it possible and added that he is projecting to reduce the deficit further in the coming year so that by the end of the 14th FC period, a manageable level of deficit is achieved. While acknowledging the 14th Finance Commission for considering the state’s case with practical approach, he asked all the AHoDs and HoDs to refrain from taking undue advantage of the generosity of the 14th FC and use funds judiciously with what is made available to the state exchequer. ‘Best budget over the years’ The Chief Minister TR Zeliang described the budget for the year 2016-17 which he presented in the floor of the House today as one of the best over the years. Addressing a press conference following the presentation of budget, he cited that most of the backlogs and civil deposits have been cleared and will be completed before the current financial year is over and for the first time, there is a positive BCR (balance from current revenue) for 2016-17. He explained that the main thrust of the present state government is to maximise development and ensure financial management. He also stated that there are talks that the “opposition-less” government has become complacent, however, the reality is that it has achieved many firsts besides being the first “opposition-less” government, including release of all pendency, coming out with positive BCR, bringing down the accumulated deficit etc. On the austerity measures that the government is proposing to take, the Chief Minister said these include disallowing departments having excess employees to recruit new employees even against resultant vacancies; rationalization of manpower management and relocation of employees from departments that have surplus to departments that require more manpower; examine the leave encashment facility. He had mentioned in his budget speech that the state government spends about 50.15% as salary for government employees and about 18.15% for pensions out of the total Non-Plan budget. The Chief Minister also pointed out that the ratio of government employee to the population is about 1:15, which is “perhaps the highest in the country”. He had also remarked that as part of the austerity measures, cabinet ministers, parliamentary secretaries and senior officers have voluntarily decided to forego the allowances of refreshments, newspapers and magazines. On whether the Special Category status for Nagaland is still intact, Zeliang said the status for north east states has been retained in the form of continuation of the 90:10 funding pattern for core CSS, while the funding pattern for optional schemes will be 80:20. He highlighted earlier in his budget speech that provision for continued funding of all CSS projects that have commenced during 2014-15 is still in existence as on March 31, 2015 for the next two years. “This will require us to take concrete measures to ensure that all such projects are closely monitored at the highest level, and their completion ensured within the funding period,” he stated.