Rio presents Rs 2358.81 cr deficit budget

Rio presents Rs 2358.81 cr deficit budget

Kohima, February 13: Chief Minister, Neiphiu Rio today presented a deficit budget of Rs 2358.81 crore.
Presenting the budget for the year 2020-21, Rio who is also the finance minister, said the current year’s transaction is estimated to result in a negative balance of Rs 123.96 crore. However because of the negative opening balance of Rs 2234.85 crore, the year 2020-21 is estimated to close with a negative balance of Rs 2358.81 crore.
In regard to the budget proposals, he said the Government is estimating the gross receipts at Rs 20826.02 crore and gross expenditure at Rs 21049.87 crore for the financial year.
Interestingly non-development expenditure surpasses development expenditure in the budget speech of the finance minister. But Rio said this is because of high percentage of Government employees, including the work-charged. The non-development expenditure show Rs 8715.30 crore and development expenditure, including Centrally Sponsored Scheme is Rs 6093.15 crore.
Rio said the current budget has been affected due to the recently tabled union budget which has shown a fall in tax collection by the Centre in the revised estimate of 2019-20. He said initially in the budget estimates of the Union Government the share of taxes for Nagaland was projected at Rs 4206 crore but in the revised estimates of the budget it has been reduced to Rs 3267 crore, a reduction of Rs 939 crore. The shortfall in tax collections of the Centre has affected all states, he added.
The chief minister said as a result the year 2019-20 is estimated to close with a deficit of Rs 2234.85 crore. But he said the State’s closing deficit has not deteriorated by the reduced amount in the share of Central taxes due to improvements in the mobilization of State’s own internal resources.
Meanwhile in an effort to increase revenue mobilization Government has decided to increase the rate of duty on petroleum products to 14.5% for diesel and 25% for petrol and other motor spirit.
Rate of road maintenance cess on petroleum products to Rs 2 per litre.
Rio said the Government is also examining few other options to generate more resources. He said levy a one-time tax of 3% of the original cost of the vehicle for the first 10 years on heavy machinery and non-transport vehicles and equipment purchased within the State as well as brought into the State for commercial activities.
For the next five years the rate of tax shall be reduced to 1.5%.
Those declared to be for exclusive personal use and agricultural tractors are exempted.
Also old vehicles or machinery of the above category not registered in the State and yet to complete ten years but plying in the State for commercial activities shall be required to pay a one-time tax at the rate of 3% of the original cost of the vehicle after allowing for depreciation.
Vehicles of the above category registered in other States but brought into the State for temporary commercial use shall pay entry fee at the rate of 1% of the original cost of the vehicle annually.
Increase of rates: (i) Duty on petroleum products is being enhanced from 10% for diesel to 14.5% and from 20.38% for petrol and other motor spirit to 25%.
(ii) Road Maintenance Cess on petroleum products is being raised from Rs. 1.50 paise per litre to Rs 2 per litre.
“We will also continue our efforts to streamline the revenue collection systems of the Government in various sectors to enhance efficiency and increase transparency,” the FM said. He said Government is also examining a few other potions to generate more resources for funding developmental activities and the exercises are expected to be implemented within the current financial year. (Page News Service)