Mukul tables deficit budget for 2017-18

SHILLONG, MAR 15: Meghalaya Chief Minister Mukul Sangma today tabled a Rs 1236 crore deficit budget for 2017-18.

“I am presenting the budget of 2017-18 with fiscal deficit of Rs 1236 crore which is around 3.8 per cent of the GSDP,” Sangma said in the Assembly.

Sangma said the total receipts are estimated to be at Rs 12,510 crore, which include revenue receipts of Rs 11,280 crore and capital receipts of Rs 1230 crore.

The total receipts witnessed a nominal increase from a Rs 10,173 crore projected receipt for 2016-17.

On the other hand, Sangma said the total expenditure is estimated at Rs 12873 crore of which the revenue expenditure is estimated to be at Rs 10,648 crore while Rs 2225 as capital expenditure.

The chief minister, who also holds the finance portfolio, stated that the state’s own resources have been adversely affected by the banning of sale of liquor near the national and state highways, which was as per the recommendations of the Supreme Court Committee on Road Safety, and the NGT ban on coal mining.

However, said that the advance estimates for Gross State Domestic Product for 2017-18 is Rs 29,566 crore and increase of 10.55 per cent over this year’s current market price of Rs 26,745 crore which showed an increase of 9.58 per cent over last year’s figures.

The Chief Minister stated that the per capita income of the state at current price for the year 2016-17 stands at Rs 88,497, an increase of 8.26 per cent increase over last year’s estimates of Rs 81,498.

Highlighting the measures to generate additional resources, Sangma said the implementation of the GST is expected to benefit consumer states like Meghalaya even as excise duty and VAT on liquor would be revised, increase tax on transportation apart from rationalizing tax structure on cigarettes and bidis.

There is also a proposal to revise late closing fee for bars and restaurants and also to reduce export fee for liquor produced in the state to boost export.

The exercise meant that various Indian-made foreign liquor, cigarettes and bidis will be costlier. So also the cost of dining at high end bars and restaurants are expected to go up considerably.

“For 2018-18, total revenue of the government is projected at Rs 2,072 crore, of which the state’s own tax revenue is estimated at Rs 1559 crore and state’s own non tax revenue at Rs 513 crore,” Sangma told the House.

The highest development plan outlay was allotted for Community & Rural Development at Rs 1731.57 crore as against Rs 811.85 crore only last year, while the least was given to District Council Affairs at Rs 1.05 crore from Rs 100 crore last year.

The state government has also pledged a development outlay of Rs 909.94 crore for education as against Rs 677 crore only last year, Rs 712.8 crore for road and bridges as against 471.8 crore only last year.

However there is a slight reduction in development outlay for the health and family welfare which was at Rs 420.93 crore only as against Rs 470 crore allocated last year.

The outlay for others include Key sectors of the Budget – Rs 450.20 crore, Social Welfare – Rs 386.10 crore, Water Supply & Sanitation – Rs 350.80 crore, Agriculture & Horticulture sector – Rs 287.94 crore and Urban Development – Rs 267.07 crore.

For the benefit of media personnel, the chief minister also announced the constitution of a Meghalaya Media Society to look into the welfare of journalists besides introducing a new scheme to provide accommodation facility for senior accredited journalists of Meghalaya.

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Budget Allocations 2017-18

Community & Rural Development – Rs 1731.57 crore

Education – Rs 909.94 crore

Road & Bridges – Rs 712.80 crore

Key sectors of the Budget – Rs 450.20 crore

Health & Family Welfare – Rs 420.93 crore

Social Welfare – Rs 386.10 crore

Water Supply & Sanitation – Rs 350.80 crore

Agriculture & Horticulture sector – Rs 287.94 crore

Urban Development – Rs 267.07 crore

Water Resources – Rs 199.20 crore