Government to restrategise approach

Revenue Realization

Dr Sangma also said that the State Government has been able to maintain its fiscal deficit below 3 percent in the last three years

A CORRESPONDENT

SHILLONG, March 13: Chief Minister Dr Mukul Sangma today said that in view of the tiol Green Tribul (NGT) ban on coal mining and subsequent fall in the collection of revenue the state government has adopted measures to mop up resources.

“We have restrategised our approach for effective realizations of revenue collection and also taken measures for resource mobilization,” Dr Sangma told the Assembly today during the Question Hour.

On a specific question asked by UDP legislator, Paul Lyngdoh on whether it was a fact that the government has gone for 20 percent cut in non-plan expenditures, the Chief Minister said that even in preceding years it has gone for 10 percent cut.

“This is not the first time that the Government has imposed such a cut. Even in the past, the Government has imposed a cut of 10 percent from the non-plan expenditure,” Dr Sangma told the House.

The Chief Minister, however, said that the department can submit proposals for exemption of the 20 percent cut on the committed liabilities.

Dr Sangma also said that the State Government has been able to maintain its fiscal deficit below 3 percent in the last three years.

According to the Chief Minister, maintaining the fiscal deficit below 3 percent is in conformity with the Fiscal Responsibility and Budget Magement Act.

The fiscal deficit was fixed at 2.08 percent during 2013-2014, 1.74 percent during 2014-2015 and the fiscal deficit of the State is projected at 2.08 percent as per Budget estimates of 2015-2016.

When questioned by Lyngdoh, on what is the plan of action of the state government to tackle the demand gap of Rs 52, 000 crore but was awarded only Rs 1770 crore by the 14th Fince Commission, Dr Sangma said that the awarded amount is specific for revenue gap.

“It implies if we received less it is specific to the revenue gap and the lower allocation is because the economy of the State is much better in comparison with the other North East States,” Dr Sangma said.