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Nagaland’s GSDP increases by Rs 10,983 cr in 5 years

Nagaland News

KOHIMA, MARCH 23: Nagaland’s Gross State Domestic Product (GSDP) increased by Rs 10,983.88 crore from Rs 19,524 crore during the period 2015-16 to Rs 30,508 crore in 2019-20 at a Compound Annual Growth Rate (CAGR) of 11,80%.
During the 5-year period, the tertiary sector was the major contributor to the GSDP with 56% followed by the primary sector with 30% and secondary sector with 12%.
This was revealed in the State Finance Audit Report of the Comptroller and Auditor General of India for the year ended March 31, 2020, which was tabled in the ongoing session of the State Assembly.
The tertiary sector increased by Rs 6,045.07 crore during the 5-year period with public administration as the major contributor and also increase in trade, hotels and restaurants.
The State’s Revenue Receipts (Rs 11,423.29 crore) decreased by 0.12% (14.12 crore) over the previous year (Rs 11,437.41 crore), mainly due to decrease in State’s share in Union Taxes and Duties (13.85%).
The State’s Own Tax Revenue (Rs 958.23 crore) increased by 13.21% over the previous year (Rs 846.43 crore). State’s share of Union Taxes and Duties (Rs 3,267.08 crore) in comparison to the previous year (Rs 3,792.41 crore) decreased by Rs 525.33 crore (13.85%).
Revenue Expenditure was Rs 11,637.02 crore and it increased by 6.57% (Rs 717.04 crore) over the previous year (Rs 10,919.98 crore).
The State’s Revenue Surplus during the last 4 years turned into Revenue Deficit, which was Rs 213.73 crore for 2019-20, mainly due to decrease in Revenue Receipts (0.12%) and increase in Revenue Expenditure (6.57%).
Capital Expenditure, which was Rs 31,206.32 crore for the year, decreased by 24.39% (Rs 389.24 crore) over the previous year’s expenditure (Rs 1,595.56 crore). It was mainly due to decrease in capital outlay under General Services (60.49%) and Economic Services (31.04%).
The State’s Total Expenditure for the year was Rs 12,852.60 crore, which increased by 3% (Rs 331.79 crore) over the previous year (Rs 12,520.81 crore). It was mainly due to increase in Revenue Expenditure (Rs 717.04 crore) offset by decrease in Capital Expenditure (Rs 389.24 crore).
The State’s Fiscal Deficit (Rs 1,428.22 crore) increased by 31.96% (Rs 345.90 crore) as compared to previous year (Rs 1,082.32 crore).
The Government failed to meet the projections made under Nagaland Fiscal Responsibility and Budget Management (FRBM) Act during the year as it could not achieve surplus on Revenue Account and the Fiscal Deficit-GSDP ratio and Outstanding Debt-GSDP ratio were above the ceilings prescribed under the Act.
Due to short contribution to the National Pension scheme (NPS) and misclassification of expenditure, the Revenue Deficit was understated by Rs 33.80 crore and fiscal deficit by Rs 30.51 crore.
Meanwhile, the CAG has recommended that the State Government needs to keep up the trend of Own Tax Revenue collection achieved during 2019-20 by focusing on other potential areas, apart from SGST to have a sustained increase in Own Tax Revenues.
The State Government needs to make efforts to achieve the projections on major fiscal parameters, made in the Nagaland FRBM Act through prudent financial management, the CAG recommended.
(Page News Service)