Imphal, February 20: Presenting the Budget of the Government of Manipur for the financial year 2008-09 with a projected budgetary deficit of Rs 46.05 crores, Chief Minister O Ibobi Singh has, nonetheless, stated that the State's finances have shown considerable improvement during the recent years.

Explaining that the task of further reducing the deficit to a lower level as been extremely difficult against the backdrop of the Medium Term Loan of Rs 609 crores of 2004-05 and the unfilled opening deficit of 20070-8, the Chief Minister, however, expressed satisfaction that the deficit has been contained at Rs 46.05 crores in 2008-09, a level that is much lower than the level of the opening deficit of the year 2007-08 .

The Chief Minister maintained that the improvement in the finances have been largely the outcome of the robust efforts taken by the State Government to improve the flow of resources to the State and consolidate the fiscal situation.

Among the measures proposed by the Government to generate revenue, the Chief Minister said that with Value Added Tax (VAT) forming the largest component of the State's own tax revenue sources, the State Government has proposed amendment of the Manipur VAT Act this year to include tobacco in the list of taxable items at 12.5 percent.

However, indigenous tobacco products such as Tuibuk and Hidak for Hidakphu will be exempted from the tax.

Through this measure, the Government projected to net an additional tax revenue of Rs 5.2 crores per annum, the Chief Minister expressed confidence.

The State Government also proposes to reduce the show tax on cinema shows from the current high of Rs 100 per show to Rs 10 per show, in view of the need to support cinema service providers, the Chief Minister informed the House, adding the Government considering bringing video parlours and cable operators within the tax net as well.

Among other noteworthy features of the budget, out of the approved outlay of Rs 1660 crores for Annual Plan 2008-09, Rs 550 crores has been devoted to taking up important and priority projects in the State under Special Plan Assistance (SPA).

The balance Rs 1110 crores of the State Plan outlay is proposed to be spend on other schemes including those covered under Additional Central Assistance for which Rs 470.79 crores is earmarked.

Under the SPA, special provisions have been made for development of physical infrastructure.

Towards this end, construction of roads and bridges has been allocated a sum of Rs 175 crores, and construction of infrastructure for district administration Rs 40 crores while another Rs 40 crores has been earmarked for development of health infrastructure including Rs 25 crores allocated for the In sectoral allocation, adequate provision has been made to provide State matching share for the Centrally sponsored schemes.

Some major ones are Rs 16.50 cores for the nutrition programme, Rs 5 crores for National Social Assistance Programme (NSAP), Rs 40 crores for Accelerated Rural Water Supply Programme (ARWSP), Rs 22.41 crores for Sarva Siksha Abhiyan (SSA) and Mid-Day Meal (MDM) programmes and Rs 9 crores for the National Rural Employment Guarantee Programme (NREGP).

Besides, provision of Rs 5 crores has also been made for the State share for Externally Aided Projects (EAP).

The EAP component in the State Plan is Rs 69.01 crores.

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