Kohima | March 29 : The revenue receipts of the state increased by 318.87 crore (9.38 percent) from Rs.3400.89 crore in 2008-09 to Rs. 3719.76 crore in 2009-10 mainly due to increase in grants from Government of India (Rs. 336.39 crore), state’s own tax own revenue (Rs. 24.49 crore) and state’s share of union taxes and duties (Rs. 12.19 crore). The revenue receipts at 3719.76 crore was however, higher than the assessment made by the state government in its Fiscal Correction Path (FCP) for the year 2009-10 by Rs. 517.99 crore.This was stated in the Report of the Comptroller and Auditor General of India on state finances for the year end (31st March 2010- Report No.1) presented in the state assembly session today by Chief minister Neiphiu Rio.
Expenditure on salary, pension payment increased
The growth rate of revenue receipts was more than twice that of GSDP growth rate during 2005-06 to 2008-09. The growth rate of revenue receipts was however, less than the growth rate of GSDP in 2009-10. The state’s own tax buoyancy with respect to GSPD was 3.37 in 2005-06 which declined to 1.29 in 2009-10 indicating that the state’s own tax was not keeping pace with the GSDP of the state. The report said the revenue expenditure of the state, on the other hand increased by Rs. 362.90 crore (12.56 per cent) from Rs. 2889.54 crore in 2008-09 to Rs. 3252.44 crore in 2009-10, mainly under the head administrative services (Rs. 123.95 crore), interest payment and servicing of debt (Rs. 50.18 crore), pension and miscellaneous General services (Rs. 50.79 crore) education, sports, and art & culture (Rs. 64.94 crore) and agriculture and allied activities (Rs. 58.66 crore).
The revenue expenditure exceeded the assessment made by the state government in its FCP for the year 2009-10 by Rs. 579.05 crore.
Though the state achieved the total revenue collection target fixed by the TFC during 2005-06 to 2008-09, it could not achieve the target in 2009-10.Besides, the own tax revenue of the state fell short of TCF recommendations in all year from 2005-06 to 2009-10 whereas the non tax revenue was always much higher than the TFC recommendations mainly due to substantial receipts under power sector. The revenue receipts have shown a progressive increase over the period 2005-10 with marginal inter-year variations and changes in its composition i.e. the share of own taxes, non-tax revenue and central transfers during the period 2005-2010. The expenditure on salaries under non-plan and plan during the current year is Rs. 1405.90 crore and Rs. 36.95 crore respectively.
The increases in salaries by Rs. 193.46 crore over the previous years was mainly due to release of dearness allowance installments and incremental benefits. Salary and wages accounted for 38.79 per cent of the revenue receipts during 2009-10 . Salary expenditure was 55.26 per cent of revenue expenditure, net of interest payment and pension, which was within the ceiling of 61 percent targeted in Nagaland Fiscal Responsibility and Budget Management (NFRBM) Act, but was much higher than the norm of 35 percent recommended by the TFC.
The expenditure on pension has increased by 21. 88 per cent (Rs. 50.10 crore) from Rs.228.96 crore in 2008-09 to Rs. 297.06 crore in 2009-10 mainly due to introduction of new retirement policy from government employees. The pension payments were Rs. 31.06 crore less than the projection made in the FCP (Rs. 310.12 crore) while it was Rs. 5.12 crore less than the assessment made by TFC (Rs. 284.18 crore) for the year 2009-10. The state government has introduced the new pension policy only with effect from January 1, 2010.
Expenditure on salary, pension payment increased
The growth rate of revenue receipts was more than twice that of GSDP growth rate during 2005-06 to 2008-09. The growth rate of revenue receipts was however, less than the growth rate of GSDP in 2009-10. The state’s own tax buoyancy with respect to GSPD was 3.37 in 2005-06 which declined to 1.29 in 2009-10 indicating that the state’s own tax was not keeping pace with the GSDP of the state. The report said the revenue expenditure of the state, on the other hand increased by Rs. 362.90 crore (12.56 per cent) from Rs. 2889.54 crore in 2008-09 to Rs. 3252.44 crore in 2009-10, mainly under the head administrative services (Rs. 123.95 crore), interest payment and servicing of debt (Rs. 50.18 crore), pension and miscellaneous General services (Rs. 50.79 crore) education, sports, and art & culture (Rs. 64.94 crore) and agriculture and allied activities (Rs. 58.66 crore).
The revenue expenditure exceeded the assessment made by the state government in its FCP for the year 2009-10 by Rs. 579.05 crore.
Though the state achieved the total revenue collection target fixed by the TFC during 2005-06 to 2008-09, it could not achieve the target in 2009-10.Besides, the own tax revenue of the state fell short of TCF recommendations in all year from 2005-06 to 2009-10 whereas the non tax revenue was always much higher than the TFC recommendations mainly due to substantial receipts under power sector. The revenue receipts have shown a progressive increase over the period 2005-10 with marginal inter-year variations and changes in its composition i.e. the share of own taxes, non-tax revenue and central transfers during the period 2005-2010. The expenditure on salaries under non-plan and plan during the current year is Rs. 1405.90 crore and Rs. 36.95 crore respectively.
The increases in salaries by Rs. 193.46 crore over the previous years was mainly due to release of dearness allowance installments and incremental benefits. Salary and wages accounted for 38.79 per cent of the revenue receipts during 2009-10 . Salary expenditure was 55.26 per cent of revenue expenditure, net of interest payment and pension, which was within the ceiling of 61 percent targeted in Nagaland Fiscal Responsibility and Budget Management (NFRBM) Act, but was much higher than the norm of 35 percent recommended by the TFC.
The expenditure on pension has increased by 21. 88 per cent (Rs. 50.10 crore) from Rs.228.96 crore in 2008-09 to Rs. 297.06 crore in 2009-10 mainly due to introduction of new retirement policy from government employees. The pension payments were Rs. 31.06 crore less than the projection made in the FCP (Rs. 310.12 crore) while it was Rs. 5.12 crore less than the assessment made by TFC (Rs. 284.18 crore) for the year 2009-10. The state government has introduced the new pension policy only with effect from January 1, 2010.
