Nagaland CM addressing the media on Thursday

Kohima: Nagaland Chief Minister Neiphiu Rio, who also holds the portfolio of finance, on Thursday presented a budget deficit of Rs 365.33 crore for 2021-22.

However, due to the negative opening balance of Rs 2,314.13 crore, 2021-22 is estimated to close with a negative balance of Rs 2679.46 crore.

Rio presented the budget for 2021-22 during the seventh session of the 13th Nagaland Legislative Assembly in Kohima.

No new taxes were introduced.

Owing to the various measures taken to reduce expenditure, 2020-21 is estimated to close with a deficit of Rs 2,314.13 crore as against the budget estimate of Rs 2,358.81 crore, said Rio.

This means that there is an improvement of Rs 44.68 crore over budget estimate figures. Rio said that the austerity measures have paid off well and that the department will likely continue with the measures to reduce avoidable expenditure.

As per the budget presentation, the estimated gross receipts for the year 2021-22 is Rs 2,2451.28 crore in total. Of these, the state’s tax and non-tax revenue are Rs 1,552.63; state’s share in central taxes is Rs 3,787.04 crore; Central assistance (grants and loans)is Rs 9,339.37 crore; Internal debt (including Ways and Means Advance from RBI) is Rs 7,770.73 crore; and Rs.1.51 crore for recovery of loans and advances by the state government.

The estimated gross expenditure is for a total of Rs 22,816.61 crore in a total of which Rs 9,316.15 if for non-development expenditure (excluding Servicing of debt); Rs 7,819 for servicing of debt (including repayment of WMA); and Rs 5680.63 for development expenditure (including centrally sponsored schemes).

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As per the budget presentation, the estimated gross receipts for the year 2021-22 is Rs 22,451.28 crore in total. Of these, the state’s own tax and non-tax revenue is Rs 1,552.63; state’s share in central taxes is Rs 3787.04 crore; Central assistance (grants and loans)is Rs 9,339.37 crore; Internal debt (including WMA from RBI) is Rs 7,770.73 crore; and Rs 1.51 crore for recovery of loans and advances by the state government.

The estimated gross expenditure is for a total of Rs 22,816.61 crore in total of which Rs 9,316.15 if for non-development expenditure (excluding Servicing of debt); Rs 7,819 for servicing of debt (including repayment of WMA); and Rs 5,680.63 for development expenditure (including centrally sponsored schemes).

According to the Finance department, 56.63% of finance is received from Central Grants, 23.02% from Union tax and duties; 10.90% from loans; 9.44% from state’s own resources; and 0.01% from capital receipts.

As for the expenditure, 37.20% is spent on salary and wages; 33.68% on development expenditures; 13.88% on pension; 6.31% on interest; 4.51% on loan repayment; 4.43% on other recurring expenditures.

A comparison table of the yearly deficit trend in Nagaland with the budget estimate as real estimate since 2013-14 is in the table below. The real estimate for the 2021-22 is not provided.

The annual deficit trend of Nagaland since 2013-14

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