Karaiba Chawang
Kohima | March 24
State Chief Minister, Neiphiu Rio, today presented an Rs 331.84 crore deficit budget for the year 2007-08, although, he called it pro-poor and a budget to boost the rural economy.
The Chief Minister estimated the gross receipt for the year 2007-08 at Rs 3998.56 crore and the gross expenditure at Rs 3983.68 crore. The current year’s transaction is estimated to result in a negative balance of Rs 91.02 crores. However, because of the estimated negative opening balance of Rs 240.82 crore, the year 2007-08 is estimated to close with a negative balance of Rs 331.84 crore, Rio said.
The Annual Plan outlay for 2007-08 has been fixed at Rs 900 crores, which indicates the step up of 18.5% over the previous year’s plan of Rs 760 crores. Rio attributed the liberal assistance of the planning commission to this substantial step up.
The Chief Minister also said that there has been substantial increase in expenditure, which is from Rs 660.49 crores during the Congress regime to Rs 1376.62 crores, which shows huge growth of 108.42 per cent, he said.
Sectoral break up of expenditure revealed that in the last seven years, expenditure in education sector has surged from Rs 60.36 crores to 121.91 crores, 115 percent, social welfare from Rs 32.08 crores to Rs 55.24 crores, 72 per cent, agri and allied from Rs 113.22 crores to 208.88 crores, 84 percent, backward area development from Rs 4.25 crores to Rs 54.13 crores, 1174 percent and transport and Communication from Rs 56.54 crores to 138.27 crores, 145 per cent.
Rio budget speech also placed the internal revenue collection at a target of Rs 225.18 crores, as against the year 2006-07 target of Rs 210.21 crores, representing a growth rate of 7.12 percent.
He also said that the DAN government efforts in revenue generation has yielded in substantial increases in state’s own revenue receipts of Rs 202.31 crores in 2005-06, a huge growth of 90.80 percent from earlier receipt of Rs 106.03 crores in 2002-03.
The planning Commission has opined that tax revenue of Nagaland should be at least 5 per cent of GSDP, and at present it is projected at Rs 7460 crores for the year 2006-07, however, this criterion may not be applicable in Nagaland as there is not income tax in the state, Rio said. For the year 2007-08, an increase of 11 percent over the revised estimates 2006-07 has been targeted in the state’s own tax and non-tax revenue. There is no new tax proposal.
However, Rio said that by the end of 11th Plan period, GSDP is expected to come up to Rs 10622 crores, and tax revenue to Rs 531 crores.
The Chief Minister blamed the prohibition Act, Supreme Court ban on felling of trees etc for the low generation of revenue.
Asserting that the government is constantly exploring ways and means to enhance the revenue mobilization, Rio expressed hope that coal sector and oil royalty will make substantial contributions to the state’s revenue. Other potential areas are under examination, Rio added.
Rio’s budget also made a commitment to follow certain fiscal corrective measures like the generation of sufficient revenue surplus, gradual reduction of fiscal deficit and gradual reduction in debt, GSDP ratio, and systematic reduction of dependence on borrowings for funding government expenditures as laid down in the “Fiscal Responsibility and Budget Management Act 2005”, amongst other things.
Later, Rio, speaking to media termed the budget as pro-people and pro-poor. He said that the budget is aimed at uplifting the rural economy of the state in general and economic condition of the backward and underdeveloped areas in particular. Besides social and infrastructural development, the budget focus will be on agriculture, horticulture, floriculture, tourism, handloom and handicrafts, youth empowerment and employment generation.
“Fund flows have become double, and you have seen the unprecedented development. We are grateful to the Centre for being generous with us”, Rio said, adding that he is completely satisfied with the achievement of his government in the last four years.
The chief minister also said that the government will be spending money mainly on capacity building and training before doling out the funds to them.
He also said that the government has announced the ‘buy back policy’ the ginger, and the government is providing even transportation cost to the farmers.
Rio also said that the budget will encourage private sector participation and rope in their resources and expertise to provide better and efficient services to the people. For which, referral hospital and Likimro Hydro project has already privatized. The department is also in the process of privatizing Kohima and Mokokchung tourist lodge, for which the tender has been floated. Besides, the government allotted land to two private parties to set up star hotels in Kohima, chief minister also.
Dotting his budget speech with Naga political problem, Rio said that factional feuds amongst the undergrounds groups have adversely affected the developmental process. However, he maintained that DAN will continue to pursue vigorously the cause of peace and harmony till honourable settlement acceptable to Naga people is achieved.
