Nagaland meets capital expenditure target for first quarter
Kohima, Sep. 14 (EMN): Nagaland is among 11 states in the country that achieved the target set by the Ministry of Finance for the capital expenditure in the first quarter of 2021-22.
As an incentive, these states have been granted permission by the department of Expenditure to borrow an additional amount of INR 15,721 crore, and Nagaland is eligible to borrow an additional INR 89 crore.
The other states that achieved the target are Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Manipur, Meghalaya, Rajasthan and Uttarakhand.
The additional open market borrowing permission granted is equivalent to 0.25% of their gross state domestic product (GSDP), according to the Ministry of Finance. It expressed hope that the additional financial resources would help the states in pushing their capital expenditure further.
Meanwhile, Andhra Pradesh has been permitted to borrow an additional amount of INR 2,655 crore; Bihar INR 1,699 crore; Chhattisgarh INR 895 crore; Haryana INR 2,105 crore; Kerala INR 2,255 crore; Madhya Pradesh INR 2,590 crore; Manipur INR 90 crore; Meghalaya INR 96 crore; Rajasthan INR 2, 593 crore and Uttarakhand- INR 654 crore.
The ministry stated that the target for incremental capital expenditure for each state to qualify for this incremental borrowing was fixed by the department of Expenditure.
To become eligible for incremental borrowing, states were required to achieve at least 15% of the target set for 2021-22 by the end of first quarter of 2021-22, 45% by the end of second quarter, 70% by the end of third quarter and 100% by March 31, 2022. The next review of capital expenditure of states will be undertaken by the department of Expenditure in December, 2021. In this round, capital expenditure achieved by the states till September, 30 2021, will be assessed.
Meanwhile, a third review will be done in March, 2022 on the basis of capital expenditure incurred by the state during the first three quarters of the year 2021-22.
Subsequently, there will be a final review of actual capital expenditure by the states in the month of June, 2022.
Any shortfall in actual capital expenditure for the year 2021-22 by the state in comparison with the targeted capital expenditure for the year 2021-22, will be adjusted from the borrowing ceiling of the state for the year 2022-23, it informed.
Meanwhile, according to its vision 2030 document, Nagaland aims to improve services, programmes and infrastructure by increasing capital expenditure aligned to ‘Nagaland Vision 2030’ besides encouraging intrastate-level innovation, technological development and capacity by reducing fiscal deficit and also converge activities under various programmes of the government.
The state government had set a target to reduce deficit to 3% of GSDP by 2030 and increase state-level income generation to empower self-sufficiency.