Shillong: Meghalaya Chief Minister Mukul Sangma on Friday said his government has affected 20 per cent cut in non-plan expenditure as an initiatives to address the revenue gap arising out of the National Green Tribunal's (NGT) ban on mining and transportation of coal.
"In view of the state's exchequer (being) affected by the NGT ban, the state government has adopted measures worked out and mopped up our resources and restrategising realisation of revenue collection," Sangma told the Assembly today.
As one of the measures to maintain a rational and healthier fiscal health, he said the state government has affected a 20 per cent cut on non-plan expenditures after the ban of coal mining and transportation.
"In the preceding year, a 10 per cent cut was imposed on different departments, but this time we decided it will be 20 per cent," he said.
The Chief Minister said the Finance department was examining proposals by some departments for exemption to pay the 20 per cent cut on a case to case basis.
"The measures have to be placed before the cabinet for its approval. The details will be made known in the budget to be brought before the House," Sangma said.
The Chief Minister was replying to a query raised by opposition United Democratic Party legislator Paul Lyngdoh on the fiscal health of the state after the NGT ban on mining and transportation of coal, which was the main source of revenue for the state.
Lyngdoh also sought to know as to how the state government was going to match the huge gap between the projected Rs 52,000 crore expenditure and Rs 1,700 crore awarded by the 14th Finance Commission, which he said was the "lowest among the NE states".
The fiscal deficit of the state for 2014-15 is projected at 2.08 per cent of GSDP as per budget estimates, Sangma said, adding that the state has been able to maintain its fiscal discipline.
"We are trying to bring down the fiscal deficit of the state to below three per cent," he said, adding that his government has been able to do that from 2011-12 onward when the fiscal deficit of the state in 2011-12 was at 6.19 per cent.
"In 2012-13, the fiscal deficit was 2.8 per cent and in 2013-14 it came down to 1.74 per cent and the projected deficit for 2014-15 is 2.08 per cent," he said.
On the schemes taken up under the 90:10 share with the Centre, the Chief Minister said the issue has been taken up with the Centre regarding to the guidelines of the schemes.