Nagaland CM presents tax-free deficit budget

Nagaland Chief Minister NeiphiuRio on Thursday presented a deficit budget for the financialyear 2021-22 without proposing any new tax.

Rio, who also holds the finance portfolio, put forththe budget proposals estimating the gross receipts at Rs22,451.28 crore and gross expenditure at Rs 22,816.61 crorefor 2021-22.

The state government also estimated a deficit of Rs2,314.13 core by end of the current financial year of 2020-21,he said.

In his budget speech, Rio said that the COVID-19pandemic has adversely impacted the finances of the state withhuge shortfalls in revenues both its own as well as itsshare in central taxes and duties.

The state government was also compelled to investfrom unbudgeted funds to fight the pandemic and the additionalexpenditure on this is Rs 90 crore so far, he said.

The state's share of central taxes has been reduced inthe Revised Estimates of the Union Budget by Rs 1,341.99crore, he said.

''Our own revenues are also estimated to decline by Rs86.19 crore,'' he said.

The state government has taken various measures toreduce expenditure and managed to save around Rs 400 croreduring the year, the chief minister said.

''In view of the difficult situation that we are facingnow, I do not propose to raise any new taxes,'' said Rio.

However, ''we have to make all possible efforts toincrease revenue collections through measures such as betterenforcement and steps to check leakage of revenue,'' he said.

As a part of this exercise, he said instructions havebeen issued to all government departments not to award anysupply orders or works contract to firms or contractors whoare not registered with the Taxes Department to reduce scopefor evasion of taxes.

Efforts are also being made in sectors like forests,geology and mining to tighten control and supervision ofgovernment agencies over trade in minerals and various naturalresources, he said.

To support ideas and ambitions and innovations at alllevels and in order to push employment generation, thegovernment is keeping Rs 34 crore under the InnovativeProgrammes & Activities Initiative.

The chief minister fixed the State DevelopmentalOutlay for 2021-22 at Rs 700 crore, which is an increase of9.55% over the Plan size of 2020-21.

''This has been done even at the cost of increasing thedeficit, because we are passing through a time when theeconomy needs adequate capital investment to provide animpetus for the much needed growth to take place,'' he said.

Rio expressed hope that during 2021-22 the countryseconomy will bounce back to its full potential and Nagalandwill get an opportunity to make up for the time that has beenlost.

''For a resource-strapped state like ours, we areheavily dependent on Centrally Sponsored Schemes for most ofthe developmental activities,'' he said adding that to ensure asmooth flow of Central funds, he has allocated Rs 250 croretowards State Matching Share for Central Schemes includingthat of DoNER and NEC.

This will enable the state to access greater fundingunder CSS programmes to boost the pace of our development, hesaid.

Under 15th Finance Commission Awards, several projectsfor improvement of health infrastructure, road maintenance,construction of the high court complex, new Raj Bhavan, minilanding strips and improvement of facilities for fire servicesin districts will be taken up from 2021-22 onwards, he said.

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