Thrust on social services and agri-allied sector
Karaiba Chawang
Kohima | March 20
The Nagaland budget for 2006-07 is devoid of any fresh taxes but emphasizes on improved realization of revenue by means of expanding the area of operation and plugging the leakages.
Presenting the budget for the year 2006-07, state chief minister Neiphiu Rio, who also holds the finance portfolio said that the estimate gross receipts is Rs 3599.61 crore. The gross expenditure has been estimated at Rs 3473.83 crore for the financial year resulting to a surplus amount of Rs 125.78 crore.
He said the current year’s transaction is estimated to result in positive balance of Rs 98.78 crore after 27 crore for public account is deducted from the surplus amount. However, because of the estimated negative opening balance of Rs 263.50 crore, the year 2006-07 is estimated to close with a negative balance of Rs 164.72 crore which is the deficit. “I do not propose to introduce any new taxes, but would emphasize on better realization of revenue by means of expanding the area of operation and by plugging the leakages”, he said.
The main thrust of this year’s budget is on Social Services and Agri-allied sector, Rio said. There is a step-up of 30% for social services, while for Agri and allied sector, a 12% step-up has been indicated for the current fiscal year. The budget gives a major thrust on agriculture and allied sectors by enhancing the plan allocation by 10 percent. Besides this, the budget also earmarked Rs 17 Crore for agriculture and allied sector to undertake the activities connected with ‘The Year of Farmer’ during the calendar year 2006.
Internal revenue target has been kept at Rs 210.21 crore, as against the BE 2005-2006 target of Rs 185.04 crore, which indicates the growth rate of 13.60%. “We are confident that it will be achieved. We are doing very well 2-3 areas like lottery, power etc.” said H.K. Khulu, Finance Commissioner.
The major chunk of revenue will come from power tariffs and minerals such as coal, oil, cement etc. Rio said the state has already formulated state coal policy, besides exploration of oil at Champang area is also in the offing and the negotiation with the ONGC and One Assam Company is on.
From the current year, Development of Under Developed Areas and Development of Backward Areas programme schemes have been clubbed together under the nomenclature of Development of Backward Areas Programme with an allocation of Rs 21.25 Crore.Rio said the focal point of the DBAP’s activity is to improve education, health, agriculture and allied activities and capacity building. To strengthen the institutes of local self Government a grant of Rs 6 Crore from the Twelfth Finance Commission will be utilised by the Municipalities over a five-year period. The budget proposed that 50 percent of the fund will be utilized for solid waste management in the towns. The budget also made Rs 40 Crore available to the villagers to improve water supply and sanitation.
The Chief Minister also proposed in his budget speech to pursue modernization of district administration. Rio proposed an outlay of Rs 12.51 Crore during 2006-07 for administrative Housing in the districts. Besides this, a separate outlay of Rs 2 Crore has been allocated to the three new districts of Peren, Kiphire and Longleng for infrastructure development.
Recognizing the urgent need for a good convention centre in the state capital Kohima, the budget proposed to construct a Convention Hall near Secretariat Complex. This construction will be undertaken under the special development package for the capitals of the North Eastern States launched by the Centre. The budget also accorded priority to development of Nagaland State as a viable tourist destination. For this, focus will be given on construction of tourist facilities in the rural areas.
For educated unemployed youths in the State, Chief Minister in his speech said that greater efforts will be made to promote well-being of the youth. He said, an action plan has already been forwarded to the DONER for implementing various activities to generate jobs for the youth under the PM’s package
Rio said that this is the fourth budget that his government is presenting to the people, and holds special importance as it is the terminal year of the10th Five year Plan.
MAIN HIGHLIGHTS OF CM’s BUDGET SPEECH
• Adequate funds, totaling around Rs 17 crore have been earmarked and allocated to Agri and Allied departments for implementing the activities connected with the year of farmer.
• Vegetables villages in all districts have been identified for the year round cultivation to meet local demands as well as to cater to the off season demands of the other states for income generation.
• Rs 540 lakhs has been earmarked during 2006-07 to provide encouragement to Micro Financing in the un-banked blocks.
• Active steps taken to develop bamboo raw material in 65 villages, and train rural youth and entrepreneurs in bamboo applications.
• Actively promote border trade with Myanmar, and seek to extend trade to south East Asian countries as parts of its “look east policy”.
• Actively pursuing for resumption of oil development activities in Nagaland that had been suspended for the last more than 10 years.
• Campus recruitments by corporate and MNCs in Nagaland in near future.
• Rs 40 crore for rural sanitation and water supply over a five year period @ Rs 800 lakh per year.
• Rs 6 crore for municipalities over a five year period @ Rs 120 lakhs per year.
