CM presents Rs 1,090 crore deficit budget

SHILLONG, MAR 14: Meghalaya chief minister Mukul Sangma on Monday tabled Rs 1,090 crore deficit budget for the state for 2016-17.  “I am presenting the 2016-17 budget with a fiscal deficit of Rs 1,090 crore, which is around 3.6 per cent of GSDP,” Sangma told the Assembly while presenting the budget on Monday.

Estimating the total receipts at Rs 10,173 crore from  Rs 9282 crore last year, he said the revenue receipts are estimated at Rs 8981 crore and capital receipts at Rs 1192 crore.

In the last financial year, the state’s own tax and non-tax revenue was estimated at Rs 1347 crore, the same was projected only at Rs 1735 crore for the FY 2016-17, Sangma said.

The revenue shortfall was due to the shrinking of resource base on account of the National Green Tribunal (NGT) ban on coal mining reducing the state’s own revenue, he said.

The total expenditure was estimated at Rs 10,103 crore, excluding repayment of loans and other liabilities, of which revenue expenditure is estimated at Rs 8,594 crore while capital expenditure at Rs 1,913 crore, Mukul said.

He also added the interest payment during 2016-17 is estimated at Rs 551 crore and pension payment at Rs 491 crore.

Stating that the fiscal deficit has also gone beyond the ‘comfortable’ limits due to  the NGT ban on coal mining, he however said that the debt-GSDP ration is well within the 31.7 per cent target set by the 13th Finance Commission.

Spelling out measures to generate additional resources, he said the government proposes to withdraw the remaining rebate of Rs 56 paise per litre allowed in respect of petrol and enhance the rate of VAT on petrol from 20 to 22 per cent.

The chief minister said VAT on liquor will be enhanced from the existing 20 per cent to 30 per cent besides increasing the import and export pass fee. “This measure is expected to generate additional revenue of about Rs 18 crore in the current financial year,” he said.

Announcing the creation of four new Community & Rural Development (C&RD) Blocks, Sangma said, “Bringing down inequality is crucial to our objective of ending poverty and building society capable of coping with unforeseen challenges of natural calamities and other crisis.”

The four new C&RD blocks include at Mawlai (East Khasi Hills), Bhoirymbong (Ri Bhoi), Dendema (West Garo Hills) and Rerapara (South West Garo Hills), he said.

It may also be pointed out the C&RD department has received the highest plan outlay at Rs 811.85 crore as per the budget estimate tabled in the assembly for 2016-17.

With an aim to fulfill the aspiration of the people, the CM said, the four new Civil Sub-divisions will be created at Mawsynrut in West Khasi Hills, Pynursla in East Khasi Hills, Chokpot in South Garo Hills and Raksamgre in West Garo Hills. Two new Administrative Units at Ranikor in South West Khasi Hills and Rongjeng in East Garo Hills will also be established.

Announcing a plan outlay of Rs 28.30 crore for improving the law and order scenario in the state, the chief minister said the 15 new police stations will be established at Diengpasoh (East Khasi Hills), Umsohlait (Ri Bhoi), Nonghyllam (South West Khasi Hills), Mawshynrut (West Khasi Hills), Lumshnong (East Jaintia Hills), Nartiang (West Jaintia Hills), Damal Asim and Hallidayganj (West Garo Hills), Salmanpara and Damalgre (South West Garo Hills), Gasuapara, Siju, Sangkhinigre and Silkigre (South Garo Hills) and Chiading (East Garo Hills)

The state government has also pledged a development plan outlay of only 677 crore as against Rs 681.88 crore for education last year, Rs 471.80 crore only as against Rs 555.2 crore last year for roads and bridges.

There is a slight improvement of the plan outlay for health where in a plan outlay of Rs 470 crore was presented with an increase of Rs 89.5 crore from last year.- By Our Reporter