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State Plan Outlay delayed
Dimapur, May 4(NPN)
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Published on 5 May. 2010 1:01 AM IST
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Discussions between Nagaland chief minister Neiphiu Rio with Dr Montek Singh Ahluwalia, deputy chairman Planning Commission of India Tuesday to finalise the state’s Annual Plan 2010-11 remained inconclusive over the basic problem of negative Balance of Current Revenue (BCR).
Addl. C.S. & development commissioner Alemtemshi Jamir in a communiqué said the BCR arose due to huge Non-Plan salary expenditure for implementation of the 6th ROP w.e.f the current financial year which was left “uncovered” by the 13th F.C. award.
In view of the issues raised, the state’s Pan Outlay is delayed for some days, during which the PCI would discuss the matter with the finance ministry to address the problem, he said.
Alemtemshi explained that the state’s Non Plan revenue expenditure amounting to Rs.7131 crore over the five-year period of the award starting from April 1,2010 had been “under assessed” by the 13th F.C. due to the “normative approach” which stipulates that salary expenditure should be around 30% of revenue expenditure.
However, the state’s salary expenditure was more than 60% of the revenue expenditure, he said.
Alemtemshi said the Non Plan expenditure involved committed salary of Rs.4142 crore over the 5-year period while for the year 2010-11 alone, the shortfall in assessment of salary amounted to Rs.632 crore.
Both the PCI and Centre were informed, that if the state was to follow the stipulated formula of 30% of expenditure for salary, then around 36,000 employees would have to be retrenched and further around 3000 retrenched in subsequent four-year period.
Alemtemshi said such an option was “not tenable” as the government was the major employer and the level of development yet to reach a stage, where private investments would create employment opportunities for growing number of unemployed youth.
This matter was also placed by the chief minister before the prime minister prior to the meeting with the Deputy Chairman PCI, he said.

 
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