Neiphiu Rio
Nagaland CM Neiphiu Rio presenting budget for 2019-20. Image - DIPR

Nagaland Chief Minister Neiphiu Rio, who also holds the finance portfolio, on Monday presented Rs 1,661.68 crore deficit budget for the year 2019-2020 without imposing any new taxes or placing any additional burden on the common people to generate revenue.

Tabling the budget on the 4th day of the third session of the 13th Nagaland Assembly in Kohima, Rio said the current financial year 2018-19 will close with an estimated deficit of Rs 1,661.68 crore.

He said the current year’s transaction is estimated to result in a positive balance of Rs 49.70 crore.

However, Rio said, because of the negative opening balance of Rs 1,661.68 crore, the financial year 2019-20 is estimated to close with a negative balance of Rs 1,611.98 crore.

An allocation of Rs 112.74 crore has been provided to the social sector which comes to 18.51 per cent of the total developmental outlay under State Resources (untied), he stated.

Rio announced introduction of new policies which include Nagaland Innovation Fund, Nagaland Investor Network, Entrepreneurship Incubators and Entrepreneurship Development Centres in schools.

In addition, several exercises in the field of skill development in both the rural and urban sector are to be undertaken, he said.

He said prior to introduction of GST in July 2017, the state’s tax revenue stood at Rs 510.76 crore, which is 19.60 per cent over the previous year.

After introduction of GST, the increase in revenue was Rs 638.29 crore during 2017-18, a growth of 25 per cent over the previous year.

The estimated target for 2018-19 was Rs 711.05 crore, a growth of 11.4% over the previous year, he said.

Rio said for the year 2019-20, the government is estimating a growth of 9.72 per cent over 2018-19.

He said it has been a difficult year confronted with many outstanding liabilities and court cases in connection with many ongoing projects, which had been left unattended for several years. He said the government will continue to make definite efforts to further bring down levels of deficit to devote more resources to developmental activities.

Rio also apprised the House the budget session has been advanced in view of the approaching Lok Sabha elections 2019.

Rio said the adverse financial position is mainly due to the huge number of government employees, whose salary requirements consume much of the funds that could otherwise have been used for developmental activities.

Bhadra Gogoi is Northeast Now Correspondent in Nagaland. He can be reached at: [email protected]