SHILLONG, MAR 23: Chief Minister Conrad K Sangma on Friday presented a Rs 1150 crore deficit budget.
“I am, therefore, presenting the budget of 2018-19 with a fiscal deficit of Rs 1150 crore which is around 3.32 per cent of GSDP,” Conrad said in his budget speech.
Estimating the total receipts at Rs 14,104 crore, he said the revenue receipts are estimated at Rs 12,531 crore and capital receipts at Rs 1573 crore.
The total receipts see a nominal increase of Rs 1594 crore from last year’s projected receipt.
The total expenditure is estimated at Rs 14101 crore of which the revenue expenditure is estimated to be at Rs 12,036 crore while Rs 2,065 crore as capital expenditure, he said.
The Chief Minister said that the spill over impact of the NGT ban on coal mining on the economy of the state is still restricting the state from realising its full revenue potential.
Stating that despite the above limitations in the collection of the state’s own revenue (both tax and non tax), he however said, “the state total receipt for 2018-19 will improve over 2017-18 on account of the comparatively higher share of central taxes earmarked at Rs 5059.77 crore for 2018-19.”
He also said that the recent relaxation on sale of liquor has slightly improved the revenue collection during the past one year.
Conrad said the advanced estimates for Gross State Domestic Product for 2017-18 is Rs 31,290 crore and increase of 10 per cent over last year’s current market price of Rs 28,445 crore which showed an increase of 9.5 per cent over last year’s figures.
He said the growth of tertiary sector is registered at 7.24 per cent and that of secondary and primary sector at 16.59 per cent and 2.71 per cent respectively.
The Chief Minister also informed that the per capita income of the state at current price for the year 2017-18 stands at Rs 89,432 showing an increase of about 5.04 per cent as compared to last year’s 8.26 per cent.
Spelling out the key measures his government will take to generate additional resources, he said that the government is taking measures to strengthen the enforcement machinery to realise higher revenue under GST, grant mining lease to minor minerals for generating revenue from royalty.
Assuring that the state will meet its committed and unavoidable expenditures, the chief minister said, “The government is committed to strictly implement and reinforce fiscal austerity measures and avoid all wasteful expenditures.”
He said that the system of revenue collection will also be reviewed and pro-active steps will be taken in tax-planning.
“There is scope for better collection in the coming years, in view of the major shift to the new tax regime of GST Areas which need more focus and improvement will be identified and remedial steps will be taken,” he said.
Conrad said that the government will continue to adopt a series of direct verification of case records of large tax payers, besides revision of assessment whenever necessary to increase government revenue.
“Besides, this more stress will be laid on scrutiny and assessment of returns of dealers under relevant Acts which have not been subsumed under the new regime in order to unlock revenue held up due to pending proceedings,” he said while pointing out that revenue collection on IMFL &MPGT Act during the year 2017-18 upto December 31, 2017 was higher as compared to the revenue collection for the same period during 2016-17.
He informed that in 2017-18, the state’s own tax revenue was Rs 1559 crore and state’s own non tax revenue was Rs 513 crore. “For 2018-19, the state’s own tax revenue is estimated at Rs 1716 crore and state’s own non-tax revenue at Rs 538 crore,” he said.
He also said the state will appropriately make submissions before the 15th Finance Commission to help improve the socio economic and administrative set up.
The Commission is set to submit its report by October 2019 and its five year award period will cover the year 2020 up to 2025.
The highest development plan outlay was allotted for Community & Rural Development at Rs 1457.94 crore which was however on the declining part compared to last year at Rs 1731.57 crore, while the least was given to Mining & Geology at Rs 3.67 crore.
The state government also pledged a development outlay of Rs 969.64 crore for education as against Rs 909.94 crore only last year, while Rs 613.31 crore for health and family welfare as against Rs 420.93 crore allocated last year.
There is a slight reduction in the development outlay for road and bridges which was at Rs 628.04 crore as against the last year’s allocation at Rs 712.8 crore.
The outlay for other key sectors include social welfare – Rs 537.72 crore, power – Rs 446.62 crore, water supply and sanitation – Rs 293.26 crore, agriculture and horticulture – Rs 252.26 crore, urban development – Rs 204.12 crore and soil & water conservation – Rs 183.07 crore.
By Our Reporter
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