Chief Minister of Nagaland, Neiphiu Rio who is also the Minister in-charge of Finance, presented the first budget of the 14th Legislative Assembly for the year 2023-2024 on the floor of the house of the Nagaland Legislative Assembly on 27th March 2023. Presenting the budget, Rio said the State Government aims to take Nagaland towards ‘A State of Excellence,’ and that the citizens must strive to excel in their chosen fields and careers and in doing so, push ‘Brand Nagaland’ and popularize ‘Naga soft power.’
Stating that the State Government will continue to keep the Naga political issue at the top of their agenda, Rio said the recognition of the unique history, culture and identity and our issue as political and the signing of the Framework Agreement and the Agreed Position, the Joint Statement made on 18th October 2022 at Kolkata, and the signing of the 'Nagas are moving ahead' at the meeting at Chümoukedima on 14th January 2023 are just some of the landmarks which the on-going dialogue has been successful in achieving.
Regarding the demand of the Eastern Nagaland Peoples' Organisation for a separate State, Rio said the State Government has already recommended the formation of an autonomous region for our brothers and sisters belonging to the Eastern Areas. The Chief Minister placed on record that while the developmental deficits and economic challenges of the Eastern Region needs to be addressed with serious intent, the State Government will stand for unity of the Naga people at all cost.
Rio highlighted that the following will be incorporated into Government plans and schemes in the area of capacity building in the coming fiscal:
·Scholarship for sponsoring doctors for further specialised education
·Exposure trips and study tour for progressive fanners
·Capacity building to promote indigenous products & entrepreneurs
·Scholarships and awards in the field of sports and games
·Capacity building and Chief Minister's Scholarships on music, arts and performing arts
·Capacity building and training for meat and dairy production
·Training centres and coaching institutes for students aspiring for civil services and common entrance exams
·Sponsoring for courses in institutions within & outside the state for specialised studies
·Introduction of Chief Minister's Journalism and Media Fellowship and study tour-cum-seminars for press and media fraternity
Rio also highlighted on the Chief Ministers' Micro-Finance Scheme which endeavours to provide affordable credit to entrepreneurs engaged in the agriculture and allied sectors and micro enterprises. The Nagaland Staff Selection Board (NSSB) has already started the process of recruitments to posts notified to be recruited by the Board, however, Rio pointed out that all the existing vacancies would not be filled up as the Government intends to gradually scale down the number of Government employees so that more funds can be set aside for developmental activities.
He stated that the State Government hosted the three-day Corporate Social Responsibility Conclave to showcase the State’s potential for investment absorption in human resources, tourism and hospitality, forest and environment, agro- based industries and organic produce. As on date, the funds actually received, formally committed, and the value of goods stand at about Rs. 82 crore.
The Chief Minister stated that all CSS implementing departments are now required to manage all receipts and expenditure as well as submission of Utilization Certificates through the PFMS portal, and under this new system, both the State as well as Central Government have the facility of viewing all transactions undertaken from the Single Nodal Account linked to PFMS. Central Share and State Share need to be released within thirty (30) days from the date of receipt of fund from the Central Government, failing which we shall have to pay penalty of 7 % per annum on the amount received, requiring all the CSS implementing Departments to ensure timely movement of files. Rio also pointed the trend of most departments paying less attention to their core activities and focusing more on construction of offices and residential buildings needs to be corrected.
The Chief Minister announced the Annual Development Outlay for the year 2023-24 fixed at Rs. 82,000 lakh, reflecting an increase of Rs. 4,500 lakh or 5.49% over the current financial year. Out of this, an amount of Rs. 25,000 lakh have been earmarked for State Matching Share for CSS programmes to ensure release of funds by the Central Government.
The Agri and Allied Sector has been provided with a total outlay of Rs. 5,426 lakh. Agriculture Department has been provided Rs. 1,736.09 lakh for construction of offices and quarters, of which Rs. 706.09 lakh is earmarked for core activities like agri farm roads, promotion of indigenous products and capacity building and exposure trips for farmers, and State Matching Share for CSS. Horticulture Department has been provided Rs. 590 lakh for construction of horti link roads, augmentation of marketing of horticultural produce, development of flower clusters and other core activities. Soil & Water Conservation Department has been provided Rs. 400 lakh for construction of Departmental Guest House and other core activities.
Animal Husbandry & Veterinary Services Department has been provided Rs. 470 lakh for various activities like strengthening of pig breeding farms and setting up feed and fodder manufacturing units through private participation and pig breeding farms in the district. Fisheries & Aquatic Resources Department has been provided Rs. 350 lakh for development of cluster-based fisheries and to institutionalised farmer's producers organisations.
Rio said Environment, Forests & Climate Change Department have been provided Rs. 420 lakh for setting up high tech nurseries to promote indigenous wild fruits in Nagaland. Cooperation Department has been provided Rs. 250 lakh for construction of office at Mokokchung. Land Resources Department has been provided Rs. 600 lakh for various departmental activities. Water Resources Department has been provided Rs. 354.48 lakh for various core activities. The Chief Minister said that Rural Development sector has been provided with Rs. 3,400 lakh for various activities. Department of Under Developed Areas has been provided Rs. 2,400 lakh for core activities and iconic projects.
Power Sector has been given a total outlay of Rs. 1,902.28 lakh. The Distribution and Revenue has been allocated Rs. 721 lakh while for Transmission and Generation, an amount of Rs. 1,181.28 lakh has been earmarked. New & Renewable sector has been provided Rs. 220 lakh for infrastructure works at the new Directorate Complex and for conversion of off-grid power plants in Government offices to grid connections.
Industries & Commerce sector has been provided with Rs. 913 lakh while Sericulture Department has been provided with Rs. 430 lakh. Department of Geology & Mining has been provided Rs. 150 lakh and the Nagaland State Mineral Development Corporation has been provided Rs. 318 lakh to facilitate shifting of the decorative stone plant from Chumoukedima to Ganeshnagar.
In the Roads and Bridges sector, Rio mentioned that an amount of Rs. 5,680 lakh has been provided for development and improvement of roads, rehabilitation of bridges and for construction of a Research Lab Centre at Dimapur. Mechanical Engineering Department has been provided Rs. 100 lakh and Road Transport sector has been provided Rs. 678.51 lakh for construction of 6 helipads in various parts of the State, for acquisition of new buses and preparation of DPR for a short landing strip. Motor Vehicle Department has been provided Rs. 412 lakh for construction of offices and installation of weigh bridges in various parts of the state.
Science & Technology Department has been provided Rs. 443.33 lakh while the Department of Information Technology & Communication has been provided an outlay of Rs. 416 lakh for activities like construction of the State Data Centre, website and software development. Tourism Department has been provided Rs. 1,055 lakh for the Hornbill and Mini Hornbill festivals, for various construction works and for participation in various fairs and festivals in the country.
Rio informed that Planning Machinery has been provided Rs. 578.66 lakh for activities like construction of quarters and infrastructure in various parts of the State. Department of Economics and Statistics has been provided Rs. 320.49 lakh. The Department of Food & Civil Supplies has been provided Rs. 300 lakh while Department of Legal Metrology & Consumer Protection has been provided Rs. 150 lakh. Department of Evaluation has been provided Rs. 270 lakh for various construction works and evaluation studies.
Rio stated that Department of School Education has been provided Rs. 3,056.11 lakh while the Department of Higher Education has been provided Rs. 1,123.07 lakh. State Council of Educational Research and Training has been allocated Rs. 510 lakh and the Department of Technical Education has been provided Rs. 172.37 lakh.
Department of Youth Resources & Sports has been provided with Rs. 1,025 lakh for various activities like capacity building for youth empowerment, tournaments and sports activities, capacity building for music and arts, and TaFMA and Hornbill related activities. The Department will also implement Chief Minister's Scholarship for music and arts. He informed that the Department of Art & Culture has been provided Rs. 350 lakh for Hornbill related and core activities. The Hornbill Festival, which is the Government’s flagship event under the slogan of ‘Land of Festivals’ will further be improved and internationalized with professional organization and promotion. As one of India's most popular tourism events, the Chief Minister said that this festival has become a priceless asset as it continues to brand Nagaland.
The Chief Minister stated that the Department of Health & Family Welfare has been provided Rs. 2,100 lakh for construction works in hospitals, construction of quarters and up gradation of health centres in the newly created districts. The Nagaland Institute of Medical Sciences and Research, Kohima, is awaiting the formal clearance of the National Medical Council to commence its academic session for the year 2023-24.
He informed that the Department of Public Health Engineering has been provided with Rs. 1,795 lakh for various water supply works and constructions. The Department of Public Works (Housing) has been provided with Rs. 3367.99 lakh for construction of offices, quarters and flats, which includes construction of Naga Patient Home at Vellore. The G.A. Housing has been provided Rs. 2,505.49 lakh for construction of DC, ADC and SDO offices, circuit houses, flat type quarters and other construction works in various parts of the State. The Police Housing has been provided with Rs. 919.60 lakh for Police housing and other constructions. The Justice and Law Department has been provided with Rs. 292.47 lakh for various construction works like judicial quarters, customary courts and district courts.
Home Guards Department has been provided Rs. 497.77 lakh for construction works and development of the Central Training Institute at Toluvi Dimapur. Jails Department has been provided Rs. 500 lakh for construction of jails and other works in jails in various parts of the State. Excise Department has been provided with Rs. 132.42 lakh for construction of a triple storied building for staff.
Urban Development Department has been provided Rs. 774.03 lakh for roads and infrastructure development activities. Municipal Affairs Department has been provided Rs. 230 lakh for procurement of urban sanitization machinery, Rio informed.
Information & Public Relations Department has been provided Rs. 310 lakh for construction of office buildings and quarters, and for multimedia mobile vehicles. Labour Department has been provided Rs. 330.50 lakh for construction of flats, labour welfare centres at Tuli, Doyang and Weziho. Employment, Skill Development & Employment Department has been provided Rs. 319.73 lakh for construction of staff quarters, skill development programs and for the ongoing construction of flat type staff quarters at Mokokchung.
He stated that the Department of Social Welfare has been provided Rs. 1,123.40 lakh for construction of offices, handicapped and blind schools and child welfare and destitute homes. Other activities include correctional services, prevention of drug abuse and procurement of Aadhaar kits for children. Women Resources Department has been provided Rs. 300 lakh for livelihood intervention and core activities.
Chief Minister Rio said the General Services Sector has been provided Rs. 4,126.48 lakh which includes Rs. 300 lakh to Printing & Stationery Department for construction of flat type quarters, Rs. 125 lakh to the Administrative Training Institute for improvement and expansion of the training complex, Rs. 720 lakh to the Nagaland Legislative Assembly Secretariat for construction of three residential quarters and refurbishing of the MLA Hostel. Rs. 968.08 lakh has been provided to Fire & Emergency Services for construction of staff quarters, garages, duty rooms, purchase of firefighting equipment and improvement of the directorate office complex. It also includes construction of rainwater harvesting facilities at Kiphire, Phomching and Wokha fire stations.
Treasuries & Accounts Department has been provided Rs. 136.74 lakh for construction of Sub-Treasury office at Chozuba and for capacity building activities. Border Affairs Department has been provided Rs. 185 lakh for the ongoing flat type quarter construction at Meriema. Parliamentary Affairs Department has been provided Rs. 50 lakh for parliamentary study tour. Taxes Department has been provided Rs. 491.54 lakh for construction of ongoing flat type staff quarters and for a new office building of Commissioner Taxes. Village Guards has been provided Rs. 275 lakh for construction of new barracks in three districts of Eastern Nagaland, for improving amenities at the Central Training Institute Dimapur and in two V.G. guest houses. Election Department has been provided Rs. 90.12 lakh for construction of central warehouse storage for EVM & VVPAT at Chumoukedima.
Home Department, Disaster Management has been provided Rs. 320 lakh for activities of the State Disaster Management Authority, capacity building and mitigation programs. Tribal Affairs Department has been provided Rs. 150 lakh for construction of staff quarters. Minority Affairs Department has been provided Rs. 315 lakh for construction of playgrounds, community halls, and amphitheatres.
Rio mentioned that other allocations include Rs. 12,500 lakh for State Matching Share to CSS. Another Rs. 12,500 lakh has been incorporated into the respective demands of CSS implementing departments, Rs. 2,500 lakh for land acquisition, Rs. 1,000 lakh for CMCF, Rs. 100 lakh for Monitoring Cell activities, Rs. 150 lakh for the GIS and Remote Sensing Centre, Rs. 180 lakh for SDG initiatives and Rs. 3,000 lakh for innovative programmes.
The Chief Minister highlighted on the gradual increase in the revenues in areas like State GST, which has increased from Rs. 788.37 crore during the pre-pandemic year 2019-20 to Rs. 1,092.21 crore during 2021- 22. The revenues from the Coal sector have also seen increase from Rs.53 lakhs during 2019-20 to Rs. 2.03 crore during 2021-22. During the current financial year, it has already reached Rs. 5 crore as per the latest details furnished by the department, and is expected to cross Rs. 8 crore by the end of the current financial year. Other areas of improvements in performance include the Forest sector that has seen a good increase in revenue from Rs. 13.72 crore during 2019-20 to Rs. 19.06 crore during 2021-22. Despite these encouraging trends, Rio informed that the State’s own revenues still account for only 12.36% of total revenue receipts, which is barely sufficient to cover the salary expenditure for two and half months.
Rio mentioned that over the 5-year period from the year 2020-21 up to 2025-26, the Revenue Deficit Grant will reduce by an amount of Rs. 910 crore.
Rio lamented on the huge loss faced by the Power sector. By the end of the current financial year 2022-23, the amount spent on power purchase is estimated to reach Rs. 580.89 crore while revenues may barely touch Rs. 280 crore. The last four years have witnessed a total loss of Rs. 1,079.74 crore in the Power sector. He also informed that an amount of Rs. 12.64 crore was spent by NST on fuel alone while the department was able to collect revenue of Rs. 6.50 crore only.
As regards the Budget proposals, CM Rio informed that for the financial year 2023-24, the gross receipts stand at Rs. 23,145.66 crore and gross expenditure at Rs. 23,085.66 crore. The closing accumulated deficit has reduced substantially from the estimated closing amount of Rs. 2,212.74 crore in Budget Estimates to Rs. 1,334.17 crore in the Revised Estimates. He added that since the current year's transactions are estimated to result in a negative balance of Rs. 40 crore, the year 2023-24 is estimated to close with an accumulated deficit of Rs. 1,374.17 crore.
The Chief Minister highlighted that on the receipts, State's Own Tax and Non-Tax Revenue stood at Rs. 1,950.56 crore; State's Share in Central Taxes, Rs. 5,812.05 crore; Central Assistance (Grants & Loans), Rs.8,050.63; Internal Debt (including WMA from RBI), Rs. 7,330.91 and Recovery of Loans and Advances by State Government, Rs. 1.51 crore which totals to Rs 23,145.66 crore. While the expenditure incurred includes Non-Development Expenditure (excluding Servicing of Debt), Rs. 11,491.76 crore, Servicing of Debt (including repayment of WMA), Rs. 7,325.27 crore and Development Expenditure (including CSS etc), Rs. 4268.63 which totals to Rs. 23,085.66 crore. The balance after expenditure stands at Rs. 60.00 crore. The Public Account (Net) stood at -Rs. 100.00 which brings the Current Transactions to – Rs. 40 crore.
