SHILLONG, MAR 18: Meghalaya chief minister Mukul Sangma said the budget presented on Wednesday reflected the investment strategy of the state government which is design to have an impact of economic stimulus.
Sangma told reporters after presenting the budget, “This will enable the state government to actually generate more resources without being dependent on the usual revenue which have been realizing from our mineral resources.”
According to Sangma, the investment strategy is design to have an impact of economic stimulus so that people earnings increases and capacity to spend increases in the long run.Stating that there is a new approach to the present budget, he informed earlier the transfer of resources to the state had both plan and non plan component.
With this recommendation of the 14th Finance Commission which has been accepted by union government, Sangm said, “the segregation between the plan and non plan will not be indicated in the budget in as far as the resources transferred to the state are concerned.”
According to Sangma, it has become important for the state to design an appropriate and balance mechanism in investment strategies.
Sangma said, “This is to ensure that the momentum of development which we have roll out at the investment and which we plan to rollout in the coming years are in sync with the promises that we have made to the people of the state vis-à-vis the targeted growth which we set for ourselves.” He added that this will also help in an efficient fiscal management in respect of administrative cost which otherwise usually referred to as non plan expenditure.
Sangma further stated this is the most challenging aspect as we will transit from the earlier financial structure to this new structure.
Informing that the modalities are being workout, Sangma said, “There is a need to balance and adopt comprehensive approach in our strategy for investment to take care of the developmental initiatives and further carry them forward.”
Sangma said the state has workout a model where it will be called as a development plan money and administrative expenditure.
Since it is the beginning of the award period of the 14th Finance Commission, Sangma felt that it is important for the house and the people of the state to know about the new structure in as far as the devolution that has been recommended vis-à-vis parameters which are required to be adhered to by the state government.
“The parameters are laid in order to ensure that the state maintains its fiscal health in a manner that they do not land up having more than what the fiscal deficit is prescribed by the finance commission,” Sangma said while claiming that Meghalaya has been capable of maintaining that momentum.
Sangma informed that as far as Meghalaya is concern even in the preceding years the state has been able to adhere to those parameters and try to actually bring down the revenue deficit and tried to ensure that the fiscal deficit does not touch even that maximum limit indicated by respective finance commission and will continue to do so.
On the new measures needs to be adopted, Sangma said, “I have proposed new tax and tax measures. In addition to that the state government will continue to embark upon number of other additional measures as felt necessary for mobbing up resources.”- By Our Reporter
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