CM presents Rs 8,434.64 cr budget estimate for 2012-13
PCI refuses to consider Rs 600 cr deficit: Ibobi
Source: Hueiyen News Service

Imphal, July 02 2012: Chief Minister of Manipur Okram Ibobi, who also holds the charge of Finance today, presented a Budget estimate of Rs 8,434.64 crore for 2012-13 in the State Assembly.

Out of the Budget Estimate of Rs 8,434.64 crores, Rs 3,500 crore is under plan, Rs 4,366.14 crore under non plan and Rs 568.50 crore under Central Sponsored Schemes (CSS), Central Plan Schemes (CPS) and NEC Schemes.

Presenting the Budget estimate, the Chief Minister explained that out of the total expenditure estimate, Rs 604.29 is charged expenditure while the remaining Rs 7,830.35 crore is voted expenditure.

He further said that the Normal Central Assistance has been estimated at Rs 840.35 crore and Special Plan Assistance (SPA) at Rs 450 crore.

The SPA estimate is meant for important development projects which need special attention.

The Chief Minister informed the House that Planning Commission has refused to consider a deficit of around Rs 600 crore, which the state government faced in the beginning of the new term.

Keeping in view of the matter, paying special attention in both plan and non plan expenditures to prevent similar fate in the current fiscal year is very important.

In order to meet the challenges in both plan and non plan expenditures, the state government has chalked out different strategies to increase its own revenues from different sources.

In this regard, government has revised the rates of Value Added Tax, State Excise Duties, Forest Royalties, Goods and Passage Taxes, Motor Vehicle Tax and License Fees on Government Accommodation.

Minimum Guidance Value for different categories of land has also been notified.

Moreover, the government is planning to produce a Bill in the current Assembly session to revise the Provisional Tax rate, the Chief Minister disclosed.

Government will also be giving prime focus in cutting down un-productive and non plan revenue expenditures, completion of developmental projects in possible minimum duration and expenditure, proper use of limited resource and realisation of due power bills to repay debts in this current year as a way to improve the economy of the state, he added.

Pointing to increased in expenditure which has become quite a menace in the state economy, the Chief Minister recalled how the government managed to meet expenditure in Committed Liabilities (Salary and Wages, Pension, Interest Payments) in the first three months of the new government with an overdraft of around Rs 495 crores which resulted in a negative opening balance of around Rs 600 crores in the state account.

The Chief Minister reiterated that as assured during passing of Vote of Account, the full budget estimate has reflected the promises of giving more weightage in power, water and transports sector.

A provision to develop critical infrastructures under SPA has also been formed.

Government would be sanctioning Rs 80 crores for development of tribal areas which includes tribal growth infrastructures, Rs 15 core for constructing barrack type quarters for Primary teachers under ADC and Rs 120 crores for development of road transport in both hills and valley.

The Chief Minister further said that the revenue account of the state government is expected to be surplus for nine consecutive years while there are high possibilities of a fiscal deficit of Rs 472.31 crores in the current fiscal year.

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