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Rio presents deficit budget of Rs. 602.30 cr

Chief Minister Neiphiu Rio presenting the Budget.
Correspondent Kohima, Mar 24 (NPN):
Published on 25 Mar. 2011 1:06 AM IST
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State chief minister Neiphiu Rio who also holds the Finance portfolio Thursday presented a deficit budget of Rs. 602.30 crores for the 2011-12.
“The current transaction of the coming year 2011-12 is estimated to result in negative balance of Rs. 0.86 crore. However, because of the estimated negative opening balance of Rs. 601.44 crore the year 2011-12 is estimated to close with a negative balance of Rs. 602.30 crore” Rio stated in his budget address.
For the year 2011-12, Rio estimated the gross receipt at Rs. 6868.76 crore and the gross expenditure at Rs. 6856.32 crore for the financial year 2011-12.
Further he informed that the State Plan outlay for 2011-12 was yet to be finalized and the budget proposals contain estimated plan outlay of Rs. 1650 crore against the current year’s plan outlay of Rs. 1500 crore.
He further informed the house that the actual plan outlay for 2011-12 will be allocated to the departments and the details along with works programme would be placed before the House at the earliest.
Rio said that he expected a larger outlay in view of the Union Finance Minister’s Budget wherein it was proposed to provide Rs. 5400 crore as untied Special Plan Association (SPA) for special category states.
To augment the revenue receipts, Rio in his budget included upward revision of Value Added Tax (VAT) rates which is expected to fetch additional revenue of Rs. 15 crore and upward revision of fees for occupation of government accommodation which is expected to fetch additional receipts of Rs. 3 crore. “Decision has also been taken to levy application and processing fees for grant and renewal of arms licenses, partly as additional revenue mobilization, but mainly to discourage our people from acquiring more arms, in the context of our depleting fauna,” Rio said in his budget speech.
He also informed the House that his government has done fairly well in resource mobilization by registering impressive average annual growth of 15.62% during the last five years and due to the state’s meagre internal revenue, it could not meet even 10% of the state’s total expenditure from own resources.
He also said that the 6th Revision of Pay for the state government employees was implemented with effect from 1st April 2010. All salaries as per the new ROP were paid in cash with effect from 1st April 2010 alongwith one month’s salary arrears a bonus, he said.
Highlighting key developmental policies and programmes of the government, Rio said that the social services sector is being accorded highest priority in 2011-12.
Touching on the Agri and Allied sector, Rio informed the members of the House that about 56 roads with a total length of 280 km are scheduled to be completed by 2011-12, while another 15 would be taken up. Stating that the government is focusing on organic cultivation of high value crops with good potential, he re-iterated the commitment of the government is attaining the goal of “Food for all by 2010”.
In the area of Horticulture, Rio informed that the government would take up construction of warehouses in potential districts and areas, construction of Horti link roads and areas expansion of focused crops. To prevent waste and provide meaningful income to the rural people, the department would focus on home scale presentation of fruits and vegetables, Rio added.
In the education sector, he said the main focus during 2011-12 would be to further strengthen the communalisation programme by improving infrastructure, equipment and facilities, encouraging women participation and awarding best performing Village Education Committee. Rio also announced a new scheme for providing free uniforms to all primary school children was also being introduced from the current academic year under Sarva Shiksha Abhiyan (SSA).
In the Social Welfare Sectors, a total of 40,462 beneficiaries are expected to be covered during 2011-12, under the Old Age Pension Scheme, Rio informed. Under Rashtriya Swasthya Bima Yojana (RSBY) Scheme of Health Insurance Below Poverty Line (BPL) a target to cover 1,87,000 BPL families has been set during 2011-12.
In the health sector, Rio said that the Government was working to provide basic infrastructure and facilities to all Health Centres. He further informed that new programmes will also be started for disaster preparedness and setting up of a State Disease Investigation Laboratory and a Disability Unit at each district hospital.
On Public Health Engineering Sector, he said that during the year 2011-12, the department would implement metering of water supply in Dimapur and Zunheboto towns. Under Total Sanitation Programme, constructions of 42,000 numbers of Individual Household Latrines are targeted, he informed.
On Empowerment of Youth, Rio said that programme like the Year of Youth Empowerment, Year of Farmers and the current year declared as the Year of Entrepreneurs will be continued in the new financial year as it has benefited thousands of youths, in the hospitality and service sectors outside the state.
He also informed that the Veterinary and Animal Husbandry Sector, the Department has set an ambitious target of achieving production of 100 tonnes of meat, 129 tonnes of milk and 10 crore eggs during 2011-12. The department will also take up new community/village based projects and preserve the myriads of streams and rivulets and has also set a target of production of 7000 metric tones of fish during the current year, he said.
In the forestry sector, the department will focus on community biodiversity conservation projects for sustainable use and management of naturals forest resources. The Nagaland Bamboo Development Agency will establish tie-ups with the Nagaland Mini Tool Room Dimapur and execute an MoU with the Shriram Institute for Industrial Research Delhi for development of Bamboo products, Rio said. He further informed that the Nagaland Empowerment of People for Economic Development (NEPED) would be focusing on commercial production of hydrogers during the current year.
Highlighting on the Rural Development sector, the leader of the House, Neiphiu Rio informed that a total of 12,415 houses were constructed for BPL families in 1128 villages under Indira Awas Yojana (IAY). On the Nagaland Beekeeping and Honey Mission (NBHM) the leader of the house informed that by the end of 2020 an estimated turnover of about Rs. 130 crore is expected with a target production of 5000 metric tones of honey and 10 metric tones of beeswax.
During the year 2011-12, the department has set ambitious targets of setting up 900 apiaries in 35 villages, training of 1200 bee keepers and attaining honey production of about 200 metric tones through establishment of new colonies. Presently about 10 metric tones of honey produced in the state is being marketed outside to popularise and promote our produce, he added. Rio also informed the House that a Task Force to address concerns of climate change has been constituted headed by the Chief Secretary, wherein the Action Plan is expected to be completed by 30th April 2011.
Highlighting on the department of Under Developed Areas, Rio informed that during the current year, focus would be given to improving connectivity developing infrastructure in the social, education, agri and allied and health sectors and to raise standards of education and livelihood in the backward areas of the state.
On the road sector, the leader of the House said that the government gives high priority to the road sector over the years.
He revealed that the government was actively pursuing construction of two-lane for the National Highway -155 connecting Mokokchung –Kiphire -Meluri- Jessami and sanctions are expected soon. Further he disclosed that the state has taken up with the Government of India to declare the road from Tuesang to Tobu –Aboi- Mon-Tizit as National Highway .
The Chief Minister also announced that under the Special Accelerated Road Development Programme North East (SARDP-NE) , received sanction for the four new roads , that will provide two-lane road connectivity to the district Headquarters of Mon, Longleng, Phek and Zunheboto having a total length of 329 Kms with an estimated cost of Rs.1296 crore. He said tendering process by the ministry of Road and Surface Transport was completed and for which the state government has set up a Quality Control Board with specific terms of reference to ensure quality implementation of all projects in the state.
Meanwhile besides the presentation of Budget for 2011-12 and debate on the motion of thanks on Governor’s address other list of business on the 2nd day of the Ninth session of the Eleventh Assembly included, discussion on matters of urgent public importance under Rule 50, laying of Annual Administrative reports of 18 departments, introduction of Government Bill, presentation of supplementary demands for grants for regularization of excess expenditure for the year 2003-04, presentation of supplementary demands for grants for the year 2010-11 and laying of review of the trends in receipts and expenditure for the 1st 2nd and 3rd quarter of the year 2010-11, as required under section 11 of the Nagaland fiscal responsibility and Budget Management Act, 2005 by the Minister in-charge of the Department of Finance, Neiphiu Rio.
Meanwhile, Neiphiu Rio briefing media persons at the Legislators’ Home, right after presenting the budget said-- being a welfare state it is a people’s budget with the lion’s share given to the social sector. He termed the budget as a balanced budget targeting the common man with the allocation of social services sector (including Education, Urban Development, Social Welfare) standing at Rs. 404.59 crore (24.52%) and Agri & Allied (including Irrigation) at Rs. 355.18 crore (21.53%). The Chief Minister of Nagaland who also holds the Finance portfolios viewed that the state’s borrowing has cut down drastically. The overall debt now stands at Rs. 4873 crores, he informed.

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