‘Post ban, state addressing revenue gap’

CM-todaySHILLONG, MAR 13: Meghalaya chief minister Mukul Sangma told the ongoing budget session of the assembly that the state government is taking number of initiatives to address the ‘revenue gap’ that arose after the NGT ban on coal mining in the state.

Replying to a query from UDP legislator Paul Lyngdoh on Friday, Sangma said as the state’s exchequer was affected by NGT ban, the state government has adopted measures to mob up its  resources mobilization by and re-strategizing realization of revenue collection.

Lyngdoh wanted to know how the state government going to deal with the gap between its demand and the expenditure projected at Rs 52,000 crores as the award given by the 14th Finance Commission stood of Rs 1700 crores, the lowest among NE states

On the course of his reply Sangma said number of initiatives has been taken but few of these measures have to be place before the cabinet for its approval. He informed that the details of the measures will be placed before the assembly during the current budget session.

Sangma  also informed that the Finance Commission award of Rs 1700 crores was to meet the revenue gap workout by the commission which also meant that state is given the least amount, as the specific deficit gap of state is much lower compared to other states.

In its effort to mob up additional revenue, Sangma said that the state government has also made 20 percent cut on non-plan expenditures for all the departments.  He informed that in the  preceding years a 10 per cent cut was imposed on different departments but this time the state government decided to impose 20 percent cut.

Sangma, however, informed that the finance department is examining the proposal put by some departments for exemption of the 20 percent cut on a case to case basis.

Stating that the state has been able to maintain fiscal discipline, Sangma said, “We are trying to bring down the fiscal deficit of the state to level below 3 per cent,” adding “The fiscal deficit of the state is projected at 2.08 per cent of GSDP as per Budget Estimates, 2014-2015.”

According to Sangma, the fiscal deficit of the state in 2011-12 was at 6.19%.

On the schemes taken up under the 90:10 share between the centre and state government, Sangma informed that the issue was taken up with the centre with regards to the guidelines of the centrally sponsored schemes that has to be based on  the need and challenges of the state.

On the issue of roads in the state, Sangma informed that maintenance of created assets as far as road is concerned, which links the growth and development of the state, it  is being taken care off  from the state Plan.- By Our Reporter

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