KOHIMA, March 23, 2018: Nagaland Chief Minister Neiphiu Rio, who also holds the finance portfolio today presented the state budget 2018-19, estimating the total receipts at Rs. 18,232.51 crore and total expenditure at Rs. 18,305.40 crore.
“The transaction for the financial year 2018-19 is estimated to result in a negative balance of Rs. 22.94 crore,” said Rio while presenting the budget at the first session of the 13th Nagaland Legislative Assembly here today.
Rio said the main reason for the negative balance is on account of the implementation of Revision of Pay (RoP) which will have a huge additional burden. In addition, with the negative opening balance of Rs. 1607.73 crore, the year 2018-19 is estimated to close with a negative balance of Rs. 1630.67 crore.
Rio said due to the adverse award of the Thirteenth Finance Commission, the state of Nagaland had a huge budgetary deficit of Rs. 1419.35 crore as on March 31, 2015. Further, during this period the central government did not fully release the state specific grants amounting to Rs. 92.50 crore, although the works were completed, thus creating liabilities.
Also, 40 projects which were approved by the erstwhile Planning Commission under Special Plan Assistance (SPA) could not be fully released due to discontinuation of the Planning Commission.
“My government will endeavor to seek from the Government of India for release of Rs. 863.95 crore, which is the amount pending under SPA,” Rio said.
Stating that at the close of the Thirteenth Finance Commission, the total budgetary deficit stood at Rs. 1419.35 crore and a total liability of Rs. 956.45 crore with sum total of Rs. 2375. 80 crore, he said “With this size of accumulated deficit, our government has been facing an uphill task of fulfilling the development requirements of the state.”
He said for the coming year 2018-19, the total estimated receipt is Rs. 18,232.52 crore, including Ways and Means Advances (WMA) of Rs. 4200 crore; out of which the receipts from the state share of central taxes is estimated at Rs. 3777.86 crore as against Rs. 3353.09 crore of 2017-18.
He said the state’s own tax receipts are estimated at Rs. 640.56 crore as against Rs. 570.70 crore of 2017-18 and Non-Tax revenue receipts are estimated at Rs. 347.45 crore as against Rs. 294.25 crore of 2017-18.
He said the percentage of Non-Development and salary has increased from Revised Estimate (RE) 2017-18 and most importantly from Budgeted Estimate (BE) 2018-19 as the state government has agreed to the implementation of the new Revision of Pay 2017 in line 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 which will be impounded to the GPF accounts of the employees.
“As a result of the implementation of RoP-2017, an amount of Rs. 178.24 crore has been provided in RE 2017-18 and for BE 2018-19, it will have an additional burden of about Rs. 854.94 crore for the serving employees and Rs. 245.81 crore for the pensioners; totaling to about Rs. 1100.75 crore,” he said adding that state government employees will have to be prepared to perform their responsibilities with sincerity and commitment, and not look only after benefits.
He said the total expenditure for the year 2018-19 is estimated at Rs. 18,305.40 crore including WMA from RBI amounting to Rs. 4200 crore; and estimated at Rs. 14, 105.40 crore without WMA.
Out of this Non-Development component comprises Rs. 7841.42 crore, servicing of debt comprises of Rs. 1711.62 crore and development component Rs. 4552.36 crore.
For 2018-19, Rio proposed a development expenditure of Rs. 4552.36 crore out of which the CSS is projected at Rs. 3567.36 crore.
Out of the total projection of CSS amount of Rs. 3567.36 crore, MGNREGA alone is estimated at Rs. 1159.09 crore, he said adding that the other major schemes under CSS are SSA, RMSA with a projected receipt of Rs. 406.95 crore and NRHM with Rs. 173.34 crore.
“We are projecting Rs. 180 crore for NEC, Rs. 110 crore for NLCPR and Rs. 115 crore for EAP during 2018-19,” he said and recalled that for many years, the state could not avail funding under Externally Aided Projects (EAP).
“However, with the active initiative and the co-ordinated efforts of the concerned departments, in 2017-18, the state could avail a total of Rs. 84.14 crore under EAP,” he said.
He said besides CSS, NEC, NLCPR and EAP, there are many other development activities to be undertaken.
“Although the need is huge, due to resources constraints, we are able to set aside an amount of Rs. 580 crore only including Negotiated Loan of Rs. 100 crore to be allocated to various departments, for taking up development works, and other welfare schemes such as LADP, CMCF etc,” he said.
This amount of Rs. 580 crore along with Rs. 180 crore from NEC, Rs. 110 crore from NLCPR and Rs. 115 crore from EAP, totaling to Rs. 985 crore, has been kept under Demand No 27- Planning machinery, to be allocated to the departments with the approval of the State Planning Board, he said.
The chief minister said a total of Rs. 168.64 crore have been earmarked under Non- Development for maintenance of existing government assets including roads.
NLA speaker Vikho-o Yhoshu informed that general discussion on budget will be taken up on March 24.
Source: The Morung Express
Featured image (courtesy): The Morung Express