Breaking News
Nagaland Post Logo
You are here:  Skip Navigation LinksHome » Show story
Outstanding loans Rs.4900 cr: FC
Dimapur, May 2 (NPN)
:
Published on 3 May. 2010 12:18 AM IST
Print  Text Size
 

Reacting to the statement of Congress member K.Therie that appeared in sections of the local press, addl.C.S. and financial commissioner Toshi Aier IAS, clarified that the Civil Deposit was not to the tune of Rs.1000 crore. In a communiqué, Toshi admitted that the outstanding loans of the government stood at Rs.4900 crore at the close of 2009-10.
On huge borrowings, he said it was unavoidable since the state’s own resources were limited. He said loans were to finance the state’s Plan programmes and fell within the Scheme of Financing the annual Plan as approved by the Planning Commission each year. He also clarified that state borrowings were with the consent of the Centre as per constitutional norms.
On Therie’s claim that the budget figure for 2010-11 should have been Rs.4458 crore, Toshi said the assumption may have arrived by adding the Annual Plan Outlay of 2009-10 to the central transfers under the 13th Finance Commission (FC) award and the State Own Revenue (SOR)
Further, he said central transfer under the award of the FC being net of receipts and expenditure as assessed by the FC, and that totaling of the award and Plan outlay does not necessarily give the expenditure budget figure. He said Therie’s figure would have been closer to the actuals if the 13th FC had fully met the state’s requirement of Non-Plan expenditure including the revision of pay.
He said Therie had not taken into account that for 2010-11, the 13th FC had “over assessed our revenue by Rs.33 crore” and “under assessed our Non Plan revenue expenditure by Rs.662 crore” besides ignoring the net deficit of Rs.94 crore under Power & Road Transport sectors.
Toshi said taking all these factors together, the expenditure budget for 2010-11 was estimated at Rs.6202 crore (Rs.5702 crore being net of Ways and Means Advance) passed by the assembly in March.
He wondered what Therie wanted to convey by stating that there was 84.40% increase in the 13th F.C. award over the previous 12th F.C. He said all funds available under the award by the 13th F.C. including state Plan and Centrally Sponsored Schemes were to be duly incorporated in the state budget and that expenditure due and possible was to be met out of available funds would be provided for.
He said funds to be provided under Non Plan for 2010-11 to meet salaries would be much larger than that provided by the 13th F.C. Toshi said Nagaland has been pleading for an adequate special grant from the Centre to cover the underassessment made by the 13th F.C. which stipulated that salary expenditure should not exceed 30% of the revenue expenditure net of interest payment & pension as against more than 70% at present.
He said if the state was to implement the 13th F.C. prescription, then one-third of the employees would have to be compulsorily retired with immediate effect and thereafter, around 3000 employees would have to be compulsorily retired every subsequent year.
He also clarified that the State’s Own Revenue resource was Rs.202 crore in 2005-06 and shown a steady growth each year to Rs.337 crore in 2008-09 taking the average annual growth to 8.92%.
Toshi also said Therie appeared confused with 13% departmental charges on capital expenditure. He said amount is not a revenue receipt but adjusted in accounts as reductior of Non-Plan revenue expenditure of a department which is duly incorporated in the budget itself.
He said such adjustments were legitimate accounts and cannot be termed as diversion of funds.

 
Comments:(0) Login or Register to post your Comment
(Available for registered users only)
 
 
 
News:
Date:
 
More News
  • 1
  • 2