Nagaland CM presents deficit budget, imposes new tax on heavy

Nagaland Chief Minister Neiphiu Rio on Thursday presented Rs 2,358.81 crores deficit budget

for fiscal 2020-21, proposing to impose a new tax on heavy machinery and equipment, besides raising duty rates on

petroleum products. Rio, who also holds the finance portfolio, said the

budget proposed to take up innovative steps in various sectors to meet the challenges of the changing time.

The expenditure for the coming fiscal is estimated at Rs 21,049.87 crores and the gross receipt is projected at Rs

20,826.02 crores, the chief minister said. He said because of the negative opening balance of Rs

2,234.85 crores, the year 2020-21 is estimated to close with a negative balance of Rs 2,358.81 crore.

Rio said new taxes on heavy machinery and equipment and increased duty rates on petroleum products would generate

additional revenue of Rs 33 crore annually. He proposed to levy a one-time registration fee at the

rate of 3 per cent of the original cost of a heavy machinery, such as an earthmover, for the first 10 years if it was

purchased in the state. For the next five years, those machinery and equipment

would be required to pay a tax at the rate of 1.5 per cent of their original cost.

However, Rio said, machinery used for personal use shall be excluded from this tax.

For vehicles of this category registered outside the state, the budget proposed to levy an annual entry fee at the

rate of one per cent of the original cost of the vehicle. Rio also proposed to enhance duty on diesel from 10

per cent to 14.5 per cent and petrol from 20.28 per cent to 25 per cent.

He also proposed to raise the rate of road maintenance cess on petroleum products from Rs 1.50 per litre to Rs 2 per

litre. For a resource crunch state which depends on funds

from the Centre, the chief minister said, the state government is actively examining a few options to generate more resources

for funding developmental activities. Rio said the current financial year had been estimated

to end at a deficit of Rs 1,611.68 crores. However, since the tax collection by the Central government has fallen, the

state's share of central taxes also reduced and the deficit of Nagaland jumped to Rs 2234.85 crores.

Addressing a press conference later, Rio said a special emphasis is being given to the area of sports and

related infrastructure, besides promoting music as an industry.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)