Finance Minister tables deficit Budget Estimate for 2020-21

Finance Minister tables deficit Budget Estimate for 2020-21

TMB Report

IMPHAL: Chief Minister N Biren, who also holds the finance portfolio, presented the budget estimate for the year 2020-21 amounting to Rs 21,224 crore in the state Assembly on Friday.

Presenting the budget estimate, the finance minister said that the total fiscal deficit for the state would be Rs 1,720 crore.

Of the Rs. 21,224 crore budget estimate, Rs 2066 crore is charged expenditure while the remaining Rs 19,159 is voted expenditure. Total revenue expenditure is Rs 16,445 crore and capital expenditure Rs 3356 crore, which is an increase of Rs 397 crore over revised esgtimates of 2019-20.

In the budget estimate for 2019-20, total expenditure was estimated at Rs 16,117 crore. The total expenditure during 2019-20 has been revised to Rs 20,607 crore. Out of the revised estimate, Rs 4234 crore is charged expenditure under the consolidated fund of the state and the remaining amount Rs 16,374 is voted expenditure. Revenue receipts and capital receipts were estimated at Rs 13,157 crore and Rs 1478 crore respectively in budget estimate 2019-20 respectively. The capital outlay increased significantly from the budget estimate of Rs 2,267 crore to Rs 2959 crore in the revised estimate.

The total receipts for 2020-21 is estimated at Rs 20146 crore. The revenue receipts are estimated at Rs 18,083 crore while the capital receipts are estimated at Rs 2063.

The finance minister said that due to precarious financial situation, the state has gone into ways and means advances a number of times which has been repaid automatically as soon as the balance is positive. Taking into account all receipts and expenditure, the current year is expected to have a budgetary deficit of Rs 1,720 crore as against the deficit of Rs 1405 crore in 2019-20. The fiscal deficit for 2019-20 is projected at Rs 2670 crore which is 8.86 percent of GSDP.

He observed that the budget is not a magic pill that can miraculously solve all the problems, constraints faced by the state in general and particularly the economy. There are serious issues facing the state economy and the government through the present budget, conveyed its seriousness in tackling the issues to bring about real and holistic development in the state.

The government presented a deficit budget of Rs 1405 crore last year, and as such effort of the government was directed towards exploring all possible avenues of additional resources mobilization and to cut down the unwanted expenditure while meeting the development needs of the state. Measures to bring more traders under GST regime and strict enforcement have resulted in improvement of GST collection. These measures had a tremendous impact on the GST collection, thereby increasing the collection from Rs 301 crore in 2017-18 to Rs 695 crore in 2018-19. For 2019-020, we expected to achieve our revised target of Rs 862 crore,  said the finance minister.

Regarding development of tourism, the finance minister said that state’s potential in tourism is immense, Tourism can not only provide steady revenue but can also generate jobs for the youths. State government has been hosting various festivals to generate interest and attract more tourists. An amount of Rs 18 crore has been earmarked for development of tourist spots in all districts of the state while an amount of Rs 3 crore has been earmarked for developing the World’s tallest railway bridge at Noney as a tourist destination. Rs.5.77 has been allocated for infrastructure development of the integrated tourist destination and circuit. Rs 7 crore has been earmarked for Imphal-Mandalay flight service.

On developing forest and environment, he said that government gives high priority to environment conservation and protection of forest cover and wildlife. Rs. 1 core has been allocated for Chief Minister’s green mission aiming at greening Manipur. An amount of Rs.97.72 crore has been sanctioned by the Ministry of Forest and environment for project ‘Rejuvenation and conservation of Nambul river. The project will help in making the entire 9.15 vKm stretch of Nambul river from Iroishemba to Heirangoithong pollution free. This will also reduce the inflow of polluted water to Loktak. Of the 97.72 crore, Rs 18 crore has been released for the project.

On journalist welfare, the allocation of journalist pension scheme has been enhanced from Rs 5 lakhs to Rs 20 lakhs.

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