CM Neiphiu Rio Presents Rs 2679. 46 Crores Deficit Budget For FY 2021-22

Nagaland Chief Minister Neiphiu Rio Presents Rs 2679. 46 Crores Deficit Budget For the Financial Year 2021-22

Kohima, February 18 (NEx): The Chief Minister and Minister-In Charge Finance, Neiphiu Rio, during the ongoing Seventh session of the Thirteen NLA on Thursday, February 18, 2021, tabled a Rs 2,679.46 crore deficit budget for the financial year 2021-22.

CM Rio presented a Budget proposal estimating the gross receipt at Rs. 22,451.28 crore and gross expenditure at Rs. 22,816.61 crore for the financial year 2021-22; resulting a negative balance of Rs. Rs 365.33 crore for the current year.

The Rs 2,679.46 crore deficit includes the negative balance of Rs 365.33 crore for the year 2021-22 and the negative opening balance of Rs 2314.13 from the previous year.

The Chief Minister stated that the lockdown had severely affected the State’s finances and with the freezing of all economic activities during the lockdown period, transactions were largely restricted to essential commodities that were mostly non-taxable. As a result, both State tax revenues as well GST receipts (State and Central GST) were severely affected including Central Government’s revenues which in turn led to a fall in the State’s Share of Central Taxes.

Rio further added that going by present trends, the States revenues are expected to fall by Rs. 86.19 crore from the BE figure of Rs. 1,283.36 crore to 1,197.17 crore, which is a reduction of 10%. The State’s share of Central Taxes and Duties are expected to reduce by Rs. 1,341.99 crore based on the Revised Estimates figures of the Union Budget, however, with the resumption of normal activities, the State’s GST revenue has picked up, he added.

The Chief Minister informed that fearing a financial crisis, the Government decided to adopt austerity measures to curtail expenditure. The measures included freezing of three instalments of Dearness Allowances/Relief in line with the decision of the Central Government. Expenditure cut on items such as Motor Vehicles, Office Expenses, Travel Expenses and Maintenance under Non-Development were also done. The Government also decided to cut down the Developmental Outlay (State Programs) by 15% and all fresh appointments have been kept on hold except in unavoidable cases, he stated.

(With inputs from DIPR)