Nagaland Budget 2019-20: Comparison With Preceding Years - Eastern Mirror
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Nagaland budget 2019-20: Comparison with preceding years

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By Raymond Ronamai Updated: Mar 01, 2019 12:28 am

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Raymond Ronamai
Dimapur, Feb. 28 (EMN): Budget, be it Union or State, has a reputation for being boring because of the big data involved; but this financial blueprint is something that every citizen should know as it gives a rough picture of how much money the government expects to raise during a financial year and how it intends to spend the same. It is a statement of the government’s receipt and expenditure for both the preceding and coming financial year.

Some may wonder what the Nagaland budget 2019-20, which was passed at the just concluded third session of the 13th NLA, has to offer as there is not much variation in the projected total receipts and expenditure from that of the previous years’ budgets. However, what sets a budget apart from the rest is the allocation of funds and the areas government tries to promote.

Eastern Mirror digs into this year’s budget by comparing with the budgets of last three years.

Flashback: What budget 2017-18 offered
The then Chief Minister Shurhozelie Liezietsu, who also held the Finance portfolio, presented an INR 1,437.84 cr. deficit budget (actual INR 1607.73 cr.) for the financial year 2017-18 with the gross receipt projected at INR 16,657.26 cr. and expenditure at INR 16,365.17 cr. It proposed to end the year with a positive balance of INR 220.04 cr. after deducting public accounts of INR 72.05 cr. However, it ended up with a negative closing balance of INR 1607.73 cr.

The thrust areas of Liezietsu’s budget were education, health and water. Out of the total outlay, 39% was on social sector; 19% on rural development; and at 13% on agriculture and allied sector. The CM said while presenting the last budget of DAN III government that nearly 80% of expenditure would be on non-developmental purposes and expressed anguish over under-utilisation of Centrally Sponsored Schemes with barely 50% of around INR 3344 cr. earmarked for the state during 2016-17 being availed.

Flashback: What budget 2018-19 offered
Chief Minister Neiphiu Rio presented an estimated deficit budget of INR 1630.67 cr. (actual INR 1,661.68 cr.) for 2018-19 with the estimated total receipts at INR 18232.51 cr. and total expenditure at INR 18305.40 cr. The transaction for the financial year was estimated to result in a negative balance of INR 22.94 cr. due to negative opening balance of INR 1607.73 cr. from the previous government and on account of the implementation of Revision of Pay (RoP) 2017 for government employees.

The PDA government’s maiden budget focused on repairing and building of roads, digitisation of government departments for transparency, introduction of mini-Hornbill festivals to boost tourism with INR two cr. kept aside for capacity building exercises for the tourism and tourism related industry. Thrust sectors of the budget include power, education, sports (proposed Nagaland sports policy, T Ao Regional Football Academy), and women empowerment (pink bus, 24-hour women’s helpline, centre for women entrepreneurs). Rio proposed to seriously look into the functioning of state corporations and undertakings, and shutdown non-performing ones.

How different is budget 2019-20?
Chief Minister Neiphiu Rio, who also holds the Finance portfolio, presented a tax-free deficit budget for 2019-20 with the expenditure estimated at INR 18,012.73 cr., total income projected at INR 17,604.48 cr. and Public Account (NET) at INR 457.95 cr. The current year’s transaction is estimated to result in a positive balance of INR 49.70 cr. but the year 2019-20 is estimated to close with negative balance of INR 1,611.98 cr. on account of the negative opening balance of INR 1,661.68 cr..

Away from traditional budgets
The PDA government’s budget for this financial year is different from that of the previous years’ on several counts. While not forgetting sectors like agri and allied, roads, social, rural development, energy, water resources, education, sports, transport, science and technology, and tourism that are seen in traditional budgets, this year’s budget ventured into some sectors like entrepreneurship and music considering the need to reduce over-dependence on government jobs.

Job seekers to job creators
Nagaland start-up policy has been framed to create a culture of entrepreneurship and promote innovation among the youth. It aims at assisting job seekers to become job creators by helping them in building start-up companies, and thus help create a sustainable economy for the state.

The policy sets a goal of at least 500 start-ups in the next five years with special focus on establishing innovative “Made in Nagaland” products and services. Eligible start-ups can avail concessions like GST reimbursement up to INR 5 lakh per annum for three years; 50% reimbursement of broadband cost; power subsidy up to INR 10 lakh per year; reimbursement of patent filing cost up to INR 2 lakh for domestic patent and INR 5 lakh for international patents; and assistance of INR 5 lakh for marketing and promotion for each start-up. To promote women entrepreneurs, 25% of start-up funds has been earmarked for women.

The Nagaland start-up policy also has provision for creation of innovation fund, investor network, entrepreneurship incubators, and entrepreneurship cells in schools. Incubators will be supported with financial assistance of INR 25 lakh as capital grants.

Music as an industry
The government announced its revamped policy of promoting music as an industry. The revamped music policy will engage the real stakeholders of the industry and undertake new initiatives of promoting all aspects of the music including capacity building, mentoring, promotion of bands and musicians, training music teachers and taking music and musicians from Nagaland to national and international platforms. It will also promote, preserve and popularise traditional music and folk songs. Artistes from the state will invited to perform at several major events both at home and abroad.

Four-year BA-B.Ed course
In education sector, the government has announced that it will introduce four-year BA-B.Ed course in all the government colleges in the state with the approval of the National College of Teacher Education. It was aimed at not only equipping those interesting in teaching to take up the profession soon after passing out of the college but also to solve shortage of trained teachers.

It may be mentioned that Union HRD minister Prakash Javadekar had announced in 2018 that the four-year integrated B.Ed course would start from this academic year (2019-20).

Rio stated in his budget speech that salary requirements of government employees consume much of the funds that could otherwise have been used for developmental activities. He urged the government servants to perform their duties conscientiously and enhance their productivity for the benefit of the people.

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By Raymond Ronamai Updated: Mar 01, 2019 12:28:50 am
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