Says, budget is realistic and people friendly
Principal Correspondent
KOHIMA, JULY 22
NAGALAND Chief Minister, T R Zeliang without proposing any new taxes today presented Rs 1252.45 crore deficit budget for the fiscal 2014-15.
Presenting his maiden Budget for the fiscal 2014-15 on the opening day of the Nagaland Assembly budget session here today, Zeliang, who also holds the finance portfolio, estimated the gross receipts at Rs 12,127.59 crore and gross expenditure at Rs 12,431.57 crore.
He said that the current year’s transaction is estimated to result in negative balance of Rs 928.86 crore, however because of the negative opening balance of Rs 323.59 crore, the year 2014-15 is estimated to close with a negative balance of Rs 1252.45 crore.
He highlighted that the negative balance included Rs 303.98 crore excess expenditure from the current transaction and Rs 624.88 crore for public accounts.
Informing the House that the Government of India is yet to finalise the plan outlay of the state as Plan discussions have not been held with any state till now, he however said, the government decided to proceed with the tentative state plan outlay of Rs 2300 crore, an increase of nearly 10 per cent over the last year’s outlay of Rs 2100 crore.
“I do not propose any new taxes in this budget,” he said however maintaining that the revenue generated within the state needs to be augmented even without increasing the rates of taxes.
“This would be possible only when we effectively plug evasion,” the CM said.
Proposing new steps towards the direction, he said the first is to fix circle rates for property so the ad valorem stamp duty is levied on such minimum property rates.
He also proposed to amend relevant rules for compulsory billing and digitisation of sale transaction of that receipts from sales tax are increased.
Agriculture being the main stay for the state, the government allocated Rs. 154.79 crore to Agri and Allied sectors. He asserted that the government is presently focusing on increasing productivity and moving towards the committed target of “Food for all” by 2025.
He said that the Industries sector, under the overall guidance and supervision of Planning & Coordination Department, will focus on the setting of the Special Development Zone along the foothill areas. Mentioning, about demand for review of the March 24 Assembly resolution on NSDZ, he asserted that the customs, traditions, culture, heritage and the unique history of the people of Nagaland will never be compromised while making special efforts towards economic progress. He also said that implementation of the Nagaland Coal Policy is being streamlined, and royalty on coal has been enhanced to Rs. 290 per metric tonne. The state government is also actively working on implementing the Petroleum and Natural Gas framework and to take up pre-production, production and post-production activities.
The general and economic services sector have been provided with Rs. 639.81 crore while the social services sector have been allocated Rs. 445.09 crore.
He also informed the House about the recent announcement made by the Government of India that with effect from 2014-15 all flagship and direct funding programmes shall be routed through the Consolidated fund of the state i.e in the ‘Treasury Mode’ instead of releasing funds directly to the project implementing authorities, and mission etc. Zeliang opined this as a welcome decision stating that it would go a long way in bringing about the desired transparency and accountability.
He informed the House about the steps taken by the Finance department for incorporating funding under Central schemes such as NRHM, MGNREGA, SSA, RMSA, PMGSY etc. into the state’s budget.
He said that an outlay of Rs 1649.93 crore in respect of erstwhile flagship/ direct funding schemes has been provided. He said that these provisions have been temporarily incorporated under CSS nomenclature in view of lack of complete clarity.
The Chief Minister informed the House that the state government has appealed to the union Government for a one time grant of Rs 1234.45 crores for wiping off the huge cumulative deficit (2003-04 to 2013-14) so that state could start from zero deficit.
“I have enormous hope on the Union Government that the request would be sympathetically considered,” CM added.
Meanwhile, the Speaker Chotisuh Sazo informed that debate on the Budget will be held on Thursday and Friday, while it would be taken up for passing on Saturday. Members have been asked to submit cut motions by 12 Noon tomorrow while the assembly will resume on Thursday morning.
Meanwhile, terming the budget for 2014-2015 as realistic and people’s budget, Zeliang addressing a customary press conference after the Budget presentation at NLA, asserted “we will make the Budget 2014-15 real and not imaginary with the cooperation of the people”.
Zeliang projected hope for improvement in the state’s financial health and looked forward towards a new step to take place in the State.
When queried on his plans about the NLTP Act, Zeliang said that the Government has not contemplated to withdraw the Act as of now, due to the strong reactions from the Church, but he however mentioned that opinion of the people will be sought on this issue.
Asked whether the state government would extend support to the farmers suffering due to delay in monsoon, he said since the situation has been similar in the entire country and the Centre is contemplating to declare drought, the state government will also have make proper assessment and send the proposal for consideration.
Item wise receipts and expenditure for 2014-15:
A: RECEIPTS Rs. (in crore)
State’s Own Tax and Non-Tax Revenue 592.60
State’s Share in Central taxes 1202.83
Central Assistance (Grants & Loans) 7753.65
Internal debt (Including WMA from RBI) 2576.06
Recovery of loans and advances by State Government 2.45
Total 12,127.59
B: EXPENDITURES Rs. (in crore)
Non-Plan Expenditure (excluding servicing of debt) 5013.78
Servicing of Debt (including repayment of WMA) 2913.75
State Plan expenditure 2300.00
CSS (including erstwhile flagship programmes) 2204.04
Total 12,431.57
C: BALANCE (A-B) -303.98
D: PUBLIC ACCOUNT (NET) -624.88
E: CURRENT TRANSACTIONS (C+D) -928.86
Key highlights of Budget 2014-15:
Agri & Allied Sector – Rs. 154.79 crore
Rural Development – Rs. 57.72 crore
Irrigational & Flood Control – Rs. 201.50 crore
Energy Sector – Rs. 64.61 crore
Industries & Minerals – Rs. 40.70 crore (under State Plan)
Transport Sector – Rs. 137.99 crore
Science & Technology – Rs. 10.67 crore
General & Economic Services – Rs.639.81 crore
Social Service Sector – Rs. 445.09 crore
General Services Sector – Rs. 25.33 crore
Outlay of Rs. 1649.93 crore in respect of the eartwhile flagship/direct funding schemes.
Horticulture – Establishment of two Centres of Excellence at Kiruphema (flowers) and Pfutsero (temperate crops)
Revitalise Government citronella farms by encouraging farmers through buy-back policy.
Royalty on coal enhanced to Rs. 290/MT
District Legal Service Authorities to be set up in all the districts and commence work for setting up subordinate Judical Courts at the
Sub-Divisional level.
89 villages earmarked for providing water supply under CSS and State Plan.
Seven bills to be tabled in the House
THE five-day long fifth session of the 12th Nagaland Legislative Assembly (NLA), which is first budget session of DAN-III government under TR Zeliang got underway here today.
It commenced with Leader of House TR Zeliang and Leader of Congress Legislature Party Tokheho Yepthomi making obituary reference to the passing away of former member of Rajya Sabha Late Scato Swu on April 7, 2014 and Union Minister of Rural Development Late Gopinath Pandurang Munde on June 3, 2014.
During the question hour, besides others, issues pertaining to Mid Day Meal Scheme, amount kept under civil deposit, improvement and maintenance of national highways and circular road; construction of Pollution Abatement of Dhansari and Diphu Rivers at Dimapur town were covered.
Assent of the Governor to seven bills were read out by Assembly Secretary AE Lotha.
The bills include: The Nagaland Farmers’ Participation in Management of Irrigation Systems Bills; The Nagaland State Council of Higher Education Bill , 2014; The Nagaland Medical Council Bill, 2014; The Nagaland State Paramedical Council Bill, 2014; The Nagaland Board of School of Education Amendment Bill, 2014; The Nagaland Appropriation ( No.1) Bill, 2014 and The Nagaland Appropriation ( No.2) Bill,2014.
Chief Minister Zeliang laid Annual Report 2007-08 and 2008-09 of the Nagaland State Mineral Development Corporation Limited while annual Administrative reports for Urban Development and Art & Culture, Printing Stationery were laid by the Parliamentary Secretary Zhaleo Rio and Parliamentary Secretary Kropal vitsu respectively. The session will conclude on Saturday.
