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Rio presents Rs. 494. 23 cr deficit Budget

Chief Minister Neiphiu Rio presenting Budget 2009-10 on day one of the 4th session of the 11th Nagaland Legislative Assembly, Tuesday. (DIPR)
Correspondent KOHIMA, JUL 7 (NPN):
Published on 8 Jul. 2009 12:49 AM IST
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Keeping the existing tax structure unchanged, Nagaland chief minister Neiphiu Rio on Tuesday presented a Rs 494.23 crores deficit budget for the year 2009-2010, much beyond its estimated deficit of Rs. 22.92 crore. Rio, in his budget speech which lasted for 45 minutes, however attributed the closing negative balance of Rs. 494.23 crore for the year 2009-10 to the estimated negative opening balance of Rs. 471.31 crore. The government estimated the gross receipt at Rs. 5238.37 crores and the gross expenditure at Rs.5276.79 crores under the consolidated fund, reflecting a deficit of Rs.38.42 crores. However, under the Public Account estimated a positive net balance of Rs.15.50.crore Briefing the media after the seventh successive DAN budget, Neiphiu Rio said that the budget was people friendly budget and with no new taxes. He asserted that the state government had given the road and communication sectors as the top most priority area while the emphasis would also be given on applying stringent measures to enhance more tax revenue collection during the year. Asked whether the state was properly utilization the state plan, Rio said that the utilization of plan was more than 90 % and hopeful that all departments would judiciously the funds. He warned that allocation would be reduced if any department failed to utilize the funds. The chief minister said that the target of internal revenue collection was pegged at Rs 320.95 crore against the target of Rs.259. 48 crore last year, representing an increase of 23. 69 %. He pointed out that the revenue collection had seen substantial increase from Rs.106.03 crores in 2002-03 to Rs.210 crores in 2006-07, representing an average growth of 24 % per annum. However, the tax revenue continued to be far below the 5 % of GSDP optimum which the Planning Commission felt Nagaland should strive to improve its revenue collection. The chief minister said that the 13th Finance Commission which recently visited the state would be deciding the grants to be given to the state in the coming five years from 2010-11 to 2014-15. Rio also said that for the implementation of 6th Pay Commission, the state government would pursue the prime minister, union finance minister, planning commission and the 13th Finance Commission for financial assistance. In this regard, he informed that the state government had appointed a Pay Fitment Committee to look into the modalities for adoption of the 6th central pay commission’s recommendations for the state government employees. The chief minister said that the increase of the annual plan outlay of the state to Rs. 1500 crore from Rs. 1200 crore in 2008-09 reflected a substantial growth of 25% which he added would help fund the increasing developmental needs of the state and infuse growth. He felt that the effort would require hard work and diligence from the government to utilize the amount properly. “We must be careful to note that if we fail to utilize it judiciously, we will not be able to justify further increase in plan size in future,” he said. The budget discussion will be held on July 9 and 10. A RECEIPTS (Consolidated Fund) (Rs. In crore) (i) State’s own tax and non-tax revenue 320.95 (ii) State’s share of Central taxes 541.34 (iii) Central assistance (grants and loan) 3055.60 (iv) Internal debt (including market loans, Institutional loans and W&M advance from RBI) 1315.86 (v) Recovery of loans & advances by State Government 4.62 Total 5238.37 B. EXPENDITURE (Consolidated Fund) (Rs. In crore) (i) Non-Plan expenditure (excluding servicing of debt) 1976.18 (ii) Servicing of debt (including W&M advance from R.B.I.) 1172.64 (iii) State Plan expenditure 1500.00 (iv) Expenditure on schemes sponsored by Ministry of DONER 88.30 (v) CSS and NEC sponsored schemes 539.67 Total 5276.79 C. PUBLIC ACCOUNT (Net) (+) 15.50 D. Net Current transaction (A-B+C) (-) 22.92

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