Aizawl: Mizoram chief minister Zoramthanga on Monday presented the annual budget of the state for the fiscal 2021-2022 with an outlay of Rs 11,148.89 crore, which is Rs 433.89 crore higher than the budget estimate of 2020-2021.
The chief minister also presented supplementary demands for grants for the financial year 2020-2021 amounting to Rs 3,058.08 crore.
There is no proposal for levying new taxes or enhancing tax rates in the new budget.
Presenting the annual budget and supplementary demands, Zoramthanga, who also holds the finance portfolio, said the severe drop in the quantum of revenue collection at the Centre due to the outbreak of Covid-19 has led to significant reduction in state’s share of taxes by Rs 1,185.03 crore during the fiscal 2020-2021, which inevitably let the state suffered a gross fiscal deficit of Rs 2,175.79 crore (6.87% of GSDP) and revenue deficit of Rs 798.62 crore (2.52 % of GSDP) in the 2020-2021.
He said the state government is constantly taking measures to increase its own revenue from all sectors.
The state government is expecting to increase the state’s own tax and non-tax revenue during the fiscal 2021-2022 at Rs 1,571.82 crore at an estimated growth of 26.27 per cent compared to the 2020-2021 budget, he said, adding that the state’s own revenue is estimated to stand at 16.05 per cent of the total revenue receipt of Rs 9,795.80 crore.
He said the target will be achieved not by levying fresh taxes but by more efficient tax collection.
The revenue expenditure for the fiscal 2021-22 is estimated to stand at Rs 9,216.39 crore, which is 82.67 per cent of the total budget and was decreased by 1.53 per cent from the 2020-21 budget of 84.20 per cent.
Revenue expenditure covers mainly salaries of government employees, pension expenses, interest payments and expenditure on large scale sectors like education, sports, road maintenance, power purchase and water supply among others.
The total fund earmarked for capital expenditure meant for creation of assets for the public was Rs 1,932.50 crore, which is 17.33 per cent of total estimated expenditure, Zoramthanga said.
The government also expected Rs 5,267.82 crore grant from the 15th Finance Commission and Rs 2,570.39 crore for implementation of Centrally-Sponsored Schemes (CSS).
Also read: Mizoram MP intercepted at Assam border
Zoramthanga said that despite limited revenue resources, he aimed at maintaining a revenue surplus of Rs 579.42 crore in 2021-2022.
He said the estimated gross fiscal deficit for the fiscal 2021-2022 is 2.14 per cent and primary deficit is 1.12 per cent of the State Gross Domestic Product (GSDP).
The total projected liability is Rs 10,491.20 crore, he said.
Zoramthanga set aside Rs 4 crore for the implementation of state flagship programme- Socio-Economic Development Policy (SEDP) against Rs. 5.13 crore in 2020-21 fiscal.
Rs 5 crore was allocated for rehabilitation of former cadres of Mizo National Front (MNF), who have come overground with the signing of Mizo peace accord in June 1986 and Rs 60 crore was put aside for MLA local area development fund, he said.
Zoramthanga said the state government will have to continue with its austerity measures at least till the state financial position improves.
He said various activities, which were undertaken in pre Covid-19 period except priority items, would not be possible to be taken up in 2021-22 as the state government is compelled to reduce its non-obligatory revenue expenditure.