Our Correspondent
KOHIMA, JULY 23
Chief Minister TR Zeliang today presented an estimated deficit budget of Rs.1426.29 crores for the fiscal 2015-16 in the state Assembly on Thursday.
Presenting the budget, the Chief Minister who also holds the additional charge of Finance minister said the current year’s transactions are estimated to result in a negative balance of Rs.1308.32 crore based on the assumption that all civil deposits and backlog of CSS would be discharged during the current year.
With a negative opening balance of Rs.117.97 crores, he stated, the year 2015-16 is estimated to close with a shortfall balance of Rs.1426.29 crores. He estimated the gross receipts at Rs.12,041.83 crores and gross expenditure at Rs.12, 582.20 crores for the financial year 2015-16.
Zeliang informed that the target for internal revenue collection during the current year has been set at Rs.665.06 crores against last year’s Rs.593 crores, an increase of 12.15%.
The plan outlay for the year 2015-16 is assumed at Rs.3622.30 crores consisting of CSS, NEC, NLCPR and State Plan, he said.
Meanwhile, introducing measures to enhance revenue mobilization, the Chief Minister proposed to hike Value Added Tax (VAT) on several areas which will come into effect from August 1 next. These include VAT on tobacco and tobacco products from existing 18% to 25%, on basic goods from existing 4.75% to 5%, 13.25% to 14.5% on general goods, concessional rate on sales to and by CSD of armed forces from 4.75% to 5%, base tax rate on petroleum products from 4.75% to 5%, and existing rates for Amusement Tax on cable and DTH subscribers from Rs.20 to Rs.25. This hike, he indicated, is expected generate additional revenue of Rs.35 crore and 15 lakhs annually.
The Chief Minister also said the state government will be fixing base circle rates for land valuation in ‘Dimapur Mouza’ for different categories such as ‘special commercial’, ‘commercial’, ‘residential’ etc. so as to check rampant practice of undervaluation of transactions on land and property, which is happening mainly with the intent of evading payment of stamp duty. This exercise is also expected to bring substantial amount of revenue to the state’s exchequer, he stated and went on to add that the stamp duty will be fixed at a flat 3% to replace existing complicated slab system of calculation.
Also stating that coal extraction in the state has so far been done in a “faulty and disorganized manner” resulting in loss of huge revenue to the neighbouring state, Zeliang said amendment to the Nagaland Coal Policy and Rules were made to ensure that lease holders get registered with the taxes department so that they would be brought into the “tax net”.
The Chief Minister also highlighted the restructuring of the Plan process with the Centre replacing the Planning Commission with NITI Aayog. He said that much of the plan decisions are now within “our discretion” with the norms of funding brought about by the awards of the 14th Finance Commission and restructuring of the planning process.
Also expressing the need to ensure that the ‘Special Category’ status of the state is protected, he said the Union Home Minister has been apprised by the Chief Ministers of NE states about the same, including continuation of Norman Central Assistance (NCA), Special Plan Assistance (SPA), and Special Central Assistance (SCA). The net loss on account of discontinuation of these three assistance programme will likely result in overall negative impact on many small states.
He informed that no plan discussion with the Central government was made due the changes initiated in the entire Plan process and consequently during 2014-15, hardly any untied plan fund could be made available to the state except for CSS, flagship programs and SPA. He said this resulted in inability to provide state share to CSS and flagship schemes and many departments had to suffer while expenditure was incurred on unavoidable areas like LADP, work charged salaries and grants to state PSU and boards.
Zeliang pointed out that the state is not in a position to fund new projects and that it would have to concentrate on completion of ongoing projects only. “The main reasons for the high levels of Non-Plan revenue expenditure which is reducing our ability to fund developmental activities is the huge number of government employees,” he stated. Taking into account the changes in planning, he said the state needs to reduce avoidable expenditure, giving priority to the implementation of programs as per needs.
He also highlighted the need for new approach in the agriculture and allied sectors and the avenue to avail substantial benefit from new central flagship programmes.
In the journey of progress and development, Zeliang says the biggest challenge is the people’s willingness to adapt to changes happening around them.
