Meghalaya presents Rs 819 crore deficit budget for FY16
Meghalaya Chief Minister Mukul Sangma on Wednesday presented Rs 819 crore deficit budget for 2015-16, withdrawing exemptions on diesel and petrol and hiking taxes on cigarettes and other similar products.
Shillong: Meghalaya Chief Minister Mukul Sangma on Wednesday presented Rs 819 crore deficit budget for 2015-16, withdrawing exemptions on diesel and petrol and hiking taxes on cigarettes and other similar products.
The state government has also increased cess on minerals to mop up additional revenue.
"I am presenting the 2015-16 budget with a fiscal deficit of about Rs 819 crore which is around 2.8 per cent of the Gross State Domestic Product (GSDP)," Sangma told the Assembly while presenting the budget.
Estimating the total receipts at Rs 9,282 crore as compared to Rs 11,156 crore last year, he said revenue receipts are estimated at Rs 8,403 crore and capital receipts at Rs 879 crore.
The revenue shortfall was due to the impact of National Green Tribunal's ban on coal mining which reduced the state's revenue by Rs 600 crore annually, he said.
In last financial year, the state's tax and non-tax revenue was estimated at Rs 1,885 crore, Sangma said, adding that the same is projected at Rs 1,347 crore for 2015-16.
The total expenditure has been estimated at Rs 9,583 crore, excluding repayment of loans and other liabilities, of which revenue expenditure is estimated at Rs 7,621 crore and capital expenditure at Rs 1,962 crore, the CM said.
Stating that the fiscal deficit (2.8 per cent of GSDP) is anchored within an annual limit of 3 per cent as per the 14th Finance Commission fiscal roadmap, he said the state will be eligible for an 'additional borrowing limit' of 0.25 per cent of the GSDP.
Spelling out measures to generate additional resources, he said the government proposes to withdraw exemption of 50 paise per litre on diesel and 50 per cent of Rs 1.13 exemption on petrol, besides increasing tax on diesel from 12.5 per cent to 13.5 per cent.
Sangma said increasing the tax on cigarettes and other similar items by 7 per cent from the current 20 per cent and cess on cement clinkers is expected to generate additional resources to the tune of Rs 30.91 crore annually.
Sangma also said that the recent enhancement of tax from 13.5 per cent to 14.5 per cent under schedule IV of Meghalaya Value Added Tax Act will generate Rs 25 crore additional income apart from Rs 5.28 crore which is expected to be raised during the fourth quarter by increasing ad valorem levy and reclassification of IMFL (Indian Made Foreign Liquor) brands.
The state government has also pledged a development plan outlay of Rs 681.88 crore for education, Rs 555.2 crore for roads and bridges, Rs 509.9 for CnRD (Community and Rural Development), Rs 380.5 crore for health and Rs 147 crore for agriculture.