Tentative budget of Rs 8240 cr presented
Source: Hueiyen News Service

Imphal, February 24, 2014: Chief Minister Okram Ibobi, who is also in-charge of State Finance Department, presented the tentative budget for the next financial year 2014-15 amounting to Rs.8240.40 crore on the first day of 7th Session of 10th Manipur Legislative Assembly today.

Out of the total budget of Rs.8240.40 crore, a sum of Rs.7536.30 crore is voted while the remaining Rs.704.19 crore is charged.

As the plan size for the financial year 2014-15 could not be finalized due to the impending 16th Lok Sabha election, the State Government proposed a Vote on Account of Rs.2746.79 crore to enable the Government to discharge its responsibilities and to meet all essential expenditure during the first four months (April, May, June & July) of the next financial year.

Normal full budget for the year 2014-15 would be presented when the plan size is finalized after a new Government assumes office at the Centre.

Besides the tentative budget, Chief Minister also presented the Supplementary Grants of Rs.541.36 crore for the current financial year 2013-14 covering 35 demands and two appropriations.

Out of the total supplementary grants, a sum of Rs.9.14 crore is charged while the remaining Rs.532.22 crore is to be voted by the House.

Aggrieved Home Guards marching towards Assembly

The supplementary demands have been necessitated largely on account of the payment of salaries, higher allocation of fund under Northeastern Council (NEC), Non-Lapsable Central Pool of Resources (NLCPR) and release of more funds under Centrally Sponsored Schemes, Central Plan Schemes etc.

Presenting the tentative budget for the financial year 2014-15 in the House, Chief Minister Okram Ibobi said that the State has been able to sustain the growth momentum despite challenges posed by resource constraints and subdued growth outlook at the national level.

The State's economy is expected to grow by about 9 percent as per the latest Advance Estimates for 2012-13. With prudent financial management and more targeted sectoral investments in the private and government sector, the State's economy can be made to grow in a sustainable manner.

The State expects to maintain the growth momentum after the finalization of Annual Plan in consultation of Planning Commission, Ibobi noted.

He further said that the State's fiscal deficit has come down from 10.06 percent of GSDP in 2011-12 to 0.01 percent of GSDP in 2012-13.The State Government made effort to reduce borrowings and liabilities in the Public Account.

As a result, the State has been able to reduce the outstanding fiscal liabilities to 57 percent of GSDP during 2012-13 that is well within the ceiling of 60.10 percent of GSDP, as laid down under the Fiscal Responsibility and Budget Management Act.

On the resource mobilization front, the State Government has taken up number of measures during the last few years.

However, collection from sources like VAT is far less than the potential, Chief Minister stated.

Expressing optimism at the 14th Finance Commission, Ibobi maintained that the members of the Commission visited the State in the month of October 2013.The recommendations of the Commission would cover the five-year period from April 1, 2015 to March 31, 2020.The Commission is expected to submit its report to the Government of India by the end of October 2014.The State Government has submitted a detailed memorandum and made a strong plea to the Commission to provide adequate grants to meet non-plan liabilities.

Commenting on the plan performance, Chief Minister said that the current year plan outlay is Rs.3650 crore and this has to be adjusted downwards because of paucity of resources.

The downsizing of the outlay is primarily a result of the reduced flows from Centre for Additional Central Assistance for certain earmarked sectors.

However, it is the effort of the State Government to optimize the available plan resources and focus on key areas.

Development of infrastructure both in the hills and valley is a priority, he added.

Ibobi further maintained that the revised estimates for 2013-14 have been framed after careful consideration of the development priorities, likely availability of resources and the State Government's ability to spend funds during the remaining part of the financial year.

The Budget Estimates for 2013-14 had placed the total expenditure at Rs.9426.44 crore, but it has been revised to Rs.8613.37 crore showing a decrease of Rs.813.07 crore.

An amount of Rs.624.71 crore out of the Revised Estimates is charged on the Consolidated Fund of the State while the remaining amount of Rs.7988.66 crore is voted expenditure, he noted.

Dwelling on the Budget Estimates for 2014-15 (Vote on Account), Chief Minister said that the provisions under Plan are tentative because of non-finalization of the State's plan outlay for 2014-15. For the 2014-15 Budget Estimates, the total receipt is at Rs.7993.65 crore.

The revenue receipts are estimated at Rs.7447.43 crore and capital receipts including public account receipts at Rs.546.22 crore.

The revenue and capital receipts under Plan are tentative and these estimated would change after the Plan outlay for 2014-15 is finalized, Ibobi said.

Moreover, the total estimates of State's own tax and non-tax receipts assumed in the Budger Estimates are Rs.560.73 crore and Rs.284.08 crore respectively.

VAT, motor vehicle tax and professional tax are the State's source of own receipts.

Total receipt from VAT is estimated at Rs.439.90 crore while the receipt from share in Central taxes has been kept at Rs.1753.36 crore as per the Central Budget 2014-15.Non-Plan grants from the Centre including Non-Plan Revenue Deficit Grant under the 13th Finance Commission Award are estimated at Rs.1428.65 crore, Chief Minister stated.

He further noted that the total expenditure for 2014-15 is Rs.8240.40 crore.

Of this Rs.2643 crore is under Plan, which is tentative, and Rs.4975 core is under Non-Plan.

The balance of Rs.622.39 crore is under Centrally Sponsored Schemes, Central Plan Schemes and NEC Schemes.

Out of the Budget Estimates, an amount of Rs.704.19 crore is charged expenditure and the remaining amount of Rs.7536.21 crore is voted expenditure.

This consists of estimated Revenue Expenditure of Rs.6792.47 crore while Capital expenditure is estimated at Rs.1447.93 crore with the Plan component being tentative, Ibobi said.

Chief Minister also stated that a tentative plan outlay of the State would be Rs.2643 crore, but it is likely to change after discussion with the Deputy Chairman of Planning Commission.

Above all, the State's fiscal deficit based on initial and tentative estimates stands at Rs.514.48 crore which is 3.43 percent of GSDP, he added.