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Meghalaya presents Rs.419 crore deficit budget
Correspondent SHILLONG, MAR 21 (NPN):
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Published on 22 Mar. 2011 12:18 AM IST
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The Meghalaya government on Monday presented Rs.419 crore deficit budget for the financial year of 2011-12.
Presenting the budget estimates for the current financial year, Chief Minister Mukul Sangma indicated that the government will be able to raise resources from various sources. He said as per the recommendation of the task force committee on the mobilization of additional resources that the deficits can be reduced by imposing cess at Rs.20 per metric ton on cement for social sector and also the introduction of ad valorem system to taxation and holograms in sale of liquor to check revenue leakages, revision of registration fees, rationalization of motor vehicles taxes and fees, revision of registration fees and the court fee stamps.
Sangma, who also holds the Finance portfolio, said the additional resources mobilization includes the increased of VAT rates from 4 to 5 per cent and 12.5 to 13.5 per cent and streamlining the collection of Meghalaya Tax on Luxuries (Hotels and Lodging Houses) by way on ensuring registration of all hotels and lodging houses.
Through these additional resources, the Chief Minister said the government is expected to yield an additional revenue of Rs.50 crore annually, besides that the state is also expecting the centre to release over Rs.100 crore compensation for the loss incurred by the state on account of implementation of VAT during years after it was enacted.
To further augment revenue generation, Sangma said the government would introduce ad valorem system levy on beer, wine, and rum drawn by license, enhancement special duty on the bottle in origin products from Rs.450 to Rs.1,232 per case and impose fee on extra neutral alcohol by bottling plants at Rs.1 per bulk litre, which the government is expecting to generate Rs.1.05 crore annually as annual revenue.
Royalty rates on timber products and minor products and upward revision of the export fees on forest products was also being proposed, he announced.
The government also proposed to take the up the revision of royalty on coal with the government of India which is due in 2011-12, he said.
The Chief Minister informed the House of the government’s proposal to implement the Goods and Services Tax once the parliament approves the constitutional amendment for its implementation.
Informing the House that the Planning Commission is yet to fix the annual Plan size for Meghalaya, Dr Sangma, who also hold the Finance portfolio said that the state government is present a tentative State Plan Budget of Rs.2727 crore for the year 2011-12.
In his budget speech, the Chief Minister also presented a tentative budget of Rs.102.60 crore from the North Eastern Council funded schemes, including Rs.337 crore under Non-Lapsable Central Pool of Resources.
Sangma said that the government proposed to continue with the implementation of new programmes that have been initiated such as the Integrated Basin Development-cum-Livelihood Programmes for which an amount of Rs.20 crore has been allocated, setting up of two institutes - Institute of Governance and Institute of Entrepreneurship for which and amount of Rs.5 crore each has been provided.
He also said that promotion of value chains for sustainable livelihood which has been earmarked at Rs.5 crore was another important programme besides other important initiatives which include promotion of ‘Green City’ and ‘Energy Efficiency” proposed to be taken up during 2011-2012 by using LED bulbs and harnessing solar energy.
He also highlighted the priorities of the Meghalaya United Alliance (MUA) government in Health and Education, Power generation, transmission, grid connectivity and rural electrification.
Agriculture and allied sectors with emphasis on Horticulture, including post harvesting management and processing, roads and Bridges for ensuring better connectivity has also been listed as state’s priorities.

 
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