Imphal: Chief minister N Biren Singh on Friday presented the budget estimated (BE) of the fiscal year 2020-2021 on the first day of the budget session of the 11th State Legislative Assembly in Imphal.
While presenting the BE 2020-2021, chief minister Biren Singh informed that the state had closed with a deficit budget of Rs 1,405 crore for the year 2019-2020 from the budget estimates to Rs 14,636 crore.
For the fiscal year 2020-2021, CM Biren Singh, who is also an in-charge for finance, presented an estimated budget at Rs 20,146 crore.
Taking into account all receipts and expenditures, the current year, as informed by CM Biren Singh, is expected to have a budgetary deficit of Rs 1,720 crore as against the deficit of BE 2019-2020.
The fiscal deficit for revised budget 2019-2020 is projected at Rs 2,670 crore, which is 8.86 per cent of Gross State Domestic Product (GSDP), he said.
Singh pointed out that the practice of unhindered deposit in 8449 has caused huge damage to the state’s economy as it has created huge liabilities without any alternate resources.
The state government, according to the chief minister, is now eyeing to explore all possibilities of additional resource mobilisation and to cut down unnecessary expenditures while meeting the developmental needs of the state.
On the expenditure front, the state government have imposed caps on budgetary outlays in the current financial year for certain expenditures from the consolidated fund of the state. This step may likely to result in expenditure reduction of about Rs 130 crore in the current year, informed Singh.
The state is also raising the additional borrowing of Rs 594 crore after getting approval from the finance ministry to ease out the government’s payments, he said.
For the fiscal year 2020-2021, Singh had also proposed a total expenditure of Rs 21,224 crore out of the Consolidated Fund of the state in the House.
Out of the total expenditure, an amount of Rs 2,066 crore is charged expenditure and the remaining amount of Rs 19,159 crore is voted expenditure, Singh informed during his estimates presentation.
Total revenue expenditure for the state is estimated at Rs 16,445 crore and capital outlay is estimated at Rs 3,356 crore, which is an increase of Rs 397 crore over revised estimates of last fiscal years.
To ensure maximum flow of funds and higher pace of development to the state, according to the leader of the House, the state has proposed to create a ‘State Share Corpus’ with an allocation of Rs 200 crore for BE 2020-2021.