Shillong, Mar 10: Chief Minister Conrad Sangma on Wednesday presented a fiscal deficit budget of Rs. 1,570 crore for 2021-22, which is around 4.07 percent of the Gross State Domestic Product.
Presenting the budget, the Chief Minister informed that the state total receipt for the current fiscal, excluding borrowings, is estimated to be Rs. 15, 262 crore.
However, the estimated total expenditure, excluding repayment of loans, is Rs 16, 832crore thus leaving a deficit of Rs. 1570 crore.
The Chief Minister, while presenting his Budget speech said that the revenue collection of the State would improve significantly in the next financial year.
Sangma informed that for 2021-22, revenue collection has been estimated at Rs 2,579 crore and Rs 694 crore under tax and non-tax respectively.
The Chief Minister informed that together with the centre’s devolution the state is expected to mobilise Rs. 3, 300 crore.
Sangma lamented that due to the pandemic the tax transfers from the centre have “reduced drastically.”
For the year 2020-21, the budget estimates were Rs. 5,999 crore, while the revised estimates were Rs. 4, 207 crore, a shortfall of Rs. 1792 crore.
“The projections for the devolution of taxes for 2021-22 are, however, encouraging,” Sangma said, adding that the 15th Finance Commission has recommended a total of 39, 012 crore for the state covering the five year award period 2021-26.
“This devolution has increased from 0.645 percent in the 14th Finance Commission to 0.767 percent in the 15th Finance Commission award,” Sangma informed.
He said that for 2021-22, the share of central taxes is estimated at Rs. 5, 105 crore and the revenue gap grant is at Rs. 1279 crore.
The own tax revenue of the state for the current fiscal is expected to touch Rs.2213 crore, which is a 11 percent jump over the previous financial year. The excise revenue for this fiscal is expected to be at an all time high of Rs. 350crore, a jump of 27 percent over the previous fiscal.
He also said that the prospects for non tax revenue collection remains encouraging for this fiscal and the State government is optimistic that from auction of coal the state would generate Rs. 350 crore.
Out of the total budget, Sangma has earmarked Rs. 820 crore for the health sector, which is a 13 percent increase over 2020-21.
Sangma has also earmarked Rs. 980 crore in which new schools and colleges would be established and existing schools and college infrastructure would be upgraded or repaired.
For development of the road and bridges in the State, Sangma allocated Rs. 1080 crore to the PWD department. Rs. 802 crore has been set aside for the PHE department, Overall Sangma has allocated Rs. 2491 crore for the development of the infrastructure sector in the state.