Government of Meghalaya
Budget Speech

1978 79

By

Shri Stanlington D. Khongwir

Deputy Chief Minister, Meghalaya

27th March, 1978

 

 

MR. SPEAKER , SIR,

     I rise, to present the Annual Financial  Statement for the year 1978-79.

     Before I proceed with my address, I may be permitted to point out that the budget estimates and the demands for grants circulated to the Hon'ble  Members were prepared on the basis of the directives given by the previous Government. I would like  to make it clear that these do not necessarily reflect  our policies  and priorities. Since there was no time, however, to recast the estimates, and the constitutional requirements had to be met, I take this opportunity to present the Annual Financial Statement  and the demands  for grants as earlier formulated.

2. The general economic situation in the country in 1977-78  presented a mixed picture. In the past, shortages of food and foreign exchange had been major constraints on economic growth. During  the last one year, such constraints have been conspicuous by their absence. The year began with foodgrains  stocks of 18 million tonnes; by the end of January 1978 the level of stocks had declined only marginally, despite larger off take from the public distribution  system. Foreign exchange reserves rose by Rs.1096 crores and stood at the record level of Rs.3959 crores at the end of January, 1978. Prices, too, have been relatively stable, because of better supply management , a good kharif crop, a liberal import policy and a restrictive monetary and credit policy. At the same time it has to be admitted that there have been shortfalls, in the production of commodities like edible oils, pulses and cotton.  These, together with the low rate of increase in industrial production, the increase liquidity in the economy and the sluggishness in industrial investment are matters for concern. Urgent attention  will have to be given, therefore, to the question of increasing the output of these sensitive commodities, providing incentives  for larger investment  in industry and evolving a strategy for utilisation of the foreign exchange reserves.

3. As in the rest of the country, mixed trends  were noticed in the State during the past years, Prices registered a moderate increase, though there was severer pressure on commodities like edible oils and pulses. Production of coal and limestone as also cement declined during the period. There was,  however, an improvement on the employment  front as evidenced by the number of job seekers on the live registers of the Employment Exchanges, which declined from 12,617 in January, 1977 to 10,712 in January, 1978.

National Plan

4. Following the assumption of power at the Centre by the Janata Government, there has been some rethinking  on national  plan objectives and strategies. It has been felt that while the policies followed during the last 25 years have yielded dividends in terms of increased production, they have not succeeded to any significant degree in reducing disparities of incomes and wealth. The time has come, therefore,  to lay greater emphasis on the problems of poverty and unemployment. It has also been  argued that changes are needed in the planning process to avoid unrealistic target fixation introduce greater flexibility, permit timely corrections  for  unforeseen external events and improve investment decisions in the long gestation sectors. The change in the planning  process is sought to be achieved by adoption of the methodology of "rolling plans".

     Since reformulation of objectives and strategies on the lines indicated calls for basic changes, the Government of India have decided to terminate the Fifth Five Year Plan at the end of 1977-78 as against 1978-79 as scheduled earlier. Instead, a new medium term plan for the period of 1978-79 to 1982-83 is being launched. The National Development Council which has met recently has discussed the approach to future planning and the strategies, objectives and procedures to be adopted for the  new medium term plan. The deliberations at the meeting of the Council have been particularly useful in evolving a national consensus on the approach to the problems of development of our country.

Meghalaya's Fifth Plan

5. The approved outlay for the Fifth Five Year Plan of Meghalaya was fixed at Rs.89.53 crores. The actual outlay for the five Annual Plans from 1974-75 to 1978-79 amounts, however, to Rs.103.02 crores. As against this, the provisional expenditure for the first three years of the Plan together with anticipated expenditure for the current year and the outlay for 1978-79 amounts  to Rs.100.50 crores.

Annual Plan 1978-79

6. The size of the Annual Plan for 1978-79 has been fixed at Rs.28.11  crores including an amount of Rs.3.15 crores for the Minimum Needs Programme. The increase in the size of the Plan is about 15 percent over the outlay for the current year. 23.7 percent of the outlay has been earmarked for power and Water Development including completion of the Kyrdemkulai Hydel Project. Emphasis has also been given to Agriculture  and Allied Services by allotting them 20.3 percent of the total outlay Considering the importance of developing infrastructural facilities, 20 percent of the outlay has been assigned  to the Transport and Communications sector. The  Social and Community services account for about 19 percent of the outlay.

     In addition  to the above outlay and the outlay on Central Sector and Centrally Sponsored Schemes, an amount of Rs. 289.63 lakhs will be available to the State for implementation  of ongoing and new schemes sponsored by the North  Eastern Council.

Finance Commission

7. As the Hon'ble Members may be aware, the Seventh Finance Commission constituted  under orders of the President of India is currently engaged in making an assessment of the financial needs of the States. It is expected to submit its recommendations regarding the devolution of taxes and grants-in-aid of the revenues of the States by October, 1978. The State Government have since submitted to the Commission the estimates of their requirement of funds  during the forecast period together  with their views on the terms of reference. While requesting  the Commission to give sympathetic  consideration to the special problems  of the State the Government  have emphasised the importance of giving due weightage to the backwardness of the State in any scheme of devolution that may be recommended by it. The Commission is scheduled to visit the State  shortly.

8. I shall now briefly indicate some of the important achievements of the past year as also the salient features of the programmes being undertaken in the next year.

Agriculture.

 9. In the agricultural sector, our objective is to gradually increase the production of foodgrains with the ultimate aim of attaining self-sufficiency. Efforts are being made to increase the area under high-yielding and improved varieties and encourage adoption of improved cultural practices. An estimated 26,000 hectares are expected to be brought under the high-yielding varieties  programme in 1978-79 as against the target of 21,000  hectares likely to be achieved in the current year. Supply  of seeds at subsidised rates, steps to popularise the use of fertilizers and large-scale demonstrations involving the use of high-yielding  varieties are the important components of the programme for achieving greater foodgrains production. In  spite of the damage caused to standing crops by hailstorms and other natural calamities, we are confident of fully achieving the current year's  foodgrains target of 1.47 lakh tonnes. In the light of this anticipated achievement, a target of 1.55 lakhs tonnes has been fixed for 1978-79.

     Encouragement of cash crops is another fact of our agricultural policy. While continuing efforts to improve production of such crops as jute, mesta, ginger and cotton, the Government is giving particular attention to the propagation of the high yielding disease-resistant variety of potato, Kufri Jyoti. It may be of interest to note that the production of potato exceeded 90,000 tonnes in the current year as against 80,000 tonnes produced in the previous year. Development of horticulture too is being given due  importance. The work of rejuvenation of citrus orchards is continuing. Steps  are also being taken to extend the area under improved cultivation  of pineapple.

`Irrigation

10. The Government is aware that irrigation facilities have to be expanded rapidly if our objectives relating to agricultural development are to be  achieved. Due to difficulties of terrain, however, our progress in this regard has not been as substantial  as in some other States.  An endeavour is being  made, therefore, to extend the coverage of irrigation as rapidly as possible consistent with the difficulties additional 4,000 hectares are expected to be covered by, among others, such means as sinking of shallow tube-wells. A further area of 6,000 hectares is expected to be covered in the next year.

Soil Conservation

11. The importance of weaning away our cultivators  from the wasteful practice of shifting cultivation needs no emphasis. During the current year, 750 families were sought to be settled on permanent plots; due to difficulties of obtaining suitable land, however, only 500 families are expected to be benefited. During the coming year, another 850  families are expected to be brought under the families are expected to be brought under the scheme. The conservation project for the Didram Upper Catchment Area in Garo Hills now being executed by the Department under the auspices of  the North Eastern Council is expected to be completed in 1978-79. The project when completed will benefit some 940 families spread over an area of  246 sq.kms. Programmes  for inducing the people of the border areas  to switch over to crops like black pepper  will be continued in the next year. Preparatory work for setting up large-scale plantations for re-settlement of jhummia families is another important activity proposed to be taken up in the next year.

Animal Husbandry

12. Animal husbandry programmes can make a useful contribution to the development of our rural economy. They not only enable the rural population to supplement  their incomes; they also help them to improve the level of nutrition. Emphasis  is, therefore, being given  to the development of livestock and the programme for crossbreeding has been intensified. Forty-nine Stockmen Centres have been established so far under this programme. The cattle farm at Upper Shillong established under the Indo-Danish Project as also the sheep farm at Saitsama are now  functioning  satisfactorily. During the year, 33  heads of cattle were supplied to different States,  in the North Eastern Region  by the farm at Upper Shillong. Development of piggery is being encouraged. Twelve numbers of Hampshire pigs were imported from the United Kingdom to the strengthen the foundation stock of the pig farms. Steps are also being taken to strengthen  departmental poultry farms. The question  of ensuring adequate health cover for the livestock population  is engaging the attention  of the Department. Two new Dispensaries and two Veterinary Aid Centres are being established and particular care is being taken to check the spread of infectious and contagious diseases.

Fisheries

13. The pace of development of fisheries in Meghalaya has not so far been commensurate with  its potential. The Umiam Reservoir, which holds  promise of being developed into a successful fishery  project, is yet to be tapped. There are indications,  however, that an agreement will be reached shortly between  the Government and the District Council  authorities on the use of the reservoir. A suitable allocation has been earmarked for  the next year for development of the reservoir in anticipation of the agreement. A beginning has been made in the sphere of trout culture  with the establishment of a small  trout farm at Shillong. A consignment of trout seeds was obtained from outside the State and arrangements  were made for training of staff. Efforts for popularisation of pisciculture were continued. As in previous years, demonstrations were continued. As in previous years, demonstrations were   conducted in the departmental fish farms and supply  of fingerlings  at concessional rates was arranged. Subsidies were also given for current year as many as 230 pisciculturists are expected to be benefited by the subsidy.

Forests

14. Notwithstanding the State's  rich endowment of forest resources, the task of replenishing its forest wealth has assumed vital importance. The District Council authorities which administer extensive forest areas of the State are being assisted to raise new plantations with economic species such as teak, sal and pine. The Forest Department too is pursuing a a programme of regeneration in the reserve forests under its control. Between them, the two agencies raised 1126 hectares of new plantation during the  current year . A further area of 1170 hectares is proposed to be brought under fresh plantation during 1978-79. Exploitation of forest  resources is being undertaken in an orderly and planned manner. Besides supplying timber for manufacture of plywood,  the Department supplied sleepers valued at Rs.30 lakhs  to the railway authorities. It also arranged to supply treated timber poles from its Saw Mill-cum-Treatment Plant at Darugiri. Commercial activities were undertaken by the Forest Development Corporation of Meghalaya also. The Corporation has been assured by the Agricultural Re-finance and Development Corporation that institutional finance to the tune of Rs.49 lakhs would be made available to it over a period of five  years. Modalities for drawal of the loan are now being worked out.

Co-operation

15. In the co-operative sector, the main thrust was on completion of the master plan for reorganisation and revitalisation of the co-operative credit structure. One hundred and seventy-three societies have so far been reorganised. Financial  assistance  in the shape of share capital contribution and managerial subsidy has also been extended  to a number of reorganised societies. At the State level, the Meghalaya Co-operative  Apex Bank  intensified its loaning  operations. A Land Development section for providing long-term credit to agriculturists has since been opened by the Bank. It has also taken up implementation of the Agricultural Credit Intensive Development Programme sponsored by the Reserve Bank of India. In the sphere  of marketing, the Meghalaya Co-operative Marketing and Consumers'  Federation was able to play an increasingly active role  in ensuring a fair price to the growers, particularly in the border areas. Its distribution network helped to stabilise the prices  of several consumer goods. Further progress  was made during the year in the field of co-operative housing. Necessary support was given to the Apex Housing Financing Co-operative Society to enable it to discharge its functions effectively.

Community Development

16. By enlisting public participation in the developmental process, Community Development Blocks in Meghalaya perform a useful role as units of local administration. Besides being responsible for implementation of the Applied  Nutrition Programme and the Special Nutrition Programme, the Blocks serve as agencies through which funds are channelised by different Development Departments for undertaking schemes tailored to local needs. In the current year, an amount of Rs.15 lakhs was allocated for this purpose. A similar amount would be made available in 1978-79. The scheme for development of the backward areas, for which an allocation of Rs.32 lakhs was available in 1977-78, is another programme entrusted to the care of the Blocks. Yet another programme for which the Blocks are responsible is the  Rural  Works Programme. Mention may be made also of the Rural Link Roads Programme which has been launched recently by the Government of India. As in the case of the programmes  referred to earlier, the agency for implementation will be the Community Development blocks. An amount of Rs.28 lakhs has been released by the Government of India for the programme.

Power

17. Efforts to develop the rich power potential of the State continued. Work on the Kyrdemkulai Hydro Electric Project is progressing satisfactorily and the likely date of commissioning is July, 1978. However, due to lock-outs in factories supplying ancillary equipments, a delay of two to three months cannot be ruled out. The first unit of the Nangalbibra Thermal Station, commissioned in February,1977, is functioning satisfactorily. It has, however, not been possible to commission  the second unit due to damage caused during commissioning tests. Further  progress was made on construction of the 132 K.V. the work is scheduled for completion in 1979. Under  the programme for Rural Electrification, 70 more villages are likely to be electrified by the end of 1977-78.  This will bring the total number of villages electrified to 408. Detailed investigation of the Umiam-Umtru (Stage IV) Project with Upper Khri division has been completed. Though the project report is yet to be formally approved, the scheme has been included in the Annual Plan for 1978-79. Investigation of the two micro-hydel projects, Ganol and Ringgi, sponsored by the North Eastern Council is also being completed by the end of the current financial year.

Mineral Development

18. Hon'ble  Members are aware that a wide variety of mineral deposits are known to occur in Meghalaya. These can be exploited, however, only after the occurrences of the deposits have been properly investigated. The investigation of the Mawlong Coal Field, on which considerable progress has been made, is therefore important. So is the investigation on limestone and coal  deposits in the Siju area which has been entrusted to the Mineral Exploration Corporation, a public sector undertaking. Mention may be made also of the work on reassessment of the Laitryngew coal reserves which is continuing. Other minerals in respect of which investigations have been taken up are kaolin, clay and fire clay.

Industries 

19. The first phase of the expansion programme  of the Mawmluh-Cherra Cements Ltd is nearing completion and the first additional kiln is expected to be commissioned shortly. With this, the capacity of the plant will  go up to 590 tonnes per day. An agreement for setting up a Watch Assembly Unit in the State has been concluded recently with the Hindustan Machine Tools Ltd. The Meghalaya Industrial Development Corporation, which is entrusted with the responsibility of promoting large and medium industries in the State, is taking steps to develop an industrial areas at Barapani. It will also administer the  scheme for the package of incentives. A number of schemes have been taken up to promote the growth of small industries. Training institutes  imparting training in varied crafts are functioning  at Shillong, Mawsynram, Dalu and Tura. Two more such centres are proposed to be established  in the next year at Nongstoin and Williamnagar. Besides, assistance in cash and kind is being  given to deserving artisans and entrepreneurs. A scheme for supply of improved tools and power to the black-smiths of Nongkynrih and Mylliem and to the potters of Kacharipara is also being drawn up.

Sericulture and Weaving

20.  The  Village Extension Centres which provide necessary supporting facilities to the local growers have a pivotal role in the programme for development  of sericulture in the State. Eighteen such centres are already functioning;  six  more are expected to be set up  by the end of the current  year. Farms and grainages too have an important  role. It is for this reason that their network is being strengthened and expanded. Three mulberry nurseries, besides a mulberry silk farm  and an eri silk farm, are planned for the next year. Along with steps for the development of sericulture, the use of improved methods of weaving and  designing is being encouraged. Seven more Weaving Demonstration Centres are being established in the current year, bringing the  total number of such centres to 12. Attempts are also being made to introduce silk weaving. To encourage weavers to take to take to silk weaving, training facilities with provision for supply of necessary inputs have been arranged. The Regional Foreign Race Seed Station established under a scheme of the North Eastern Council is being organised for production and maintenance of foreign races of silk worm seeds. Supply of seeds to neighboring States is expected to start soon.

Education

21. Death of technical personnel is a constraint which has often stood in the way  of effective  and expeditious implementation of development schemes in the State. While no instant solution to this problem is possible, a conscious effort has to be made to encourage more students to take up the study of science subjects. With this  object in view, the Education Department has been taking  steps to develop science education in the  State. Under a programme of the UNICEF, under which 50 schools  have been covered so far, science education is being  introduced right from the primary level. Suitable text books in the Khasi and Garo languages have been published to facilitate implementation  of the programme. A proposal to open four centres for coaching  tribal students of the high school level is also under  consideration. The coverage of the scheme for non-formal education, is being extended and persons of the age group 15 to 35 in all the five districts will be covered in 1978-79. Emphasis is also being given to the development of sports and youth welfare activities. Fifteen Rural Sports Centres are being set up in different parts of the State in the next year.

Health

22.  Steady progress was made in expanding the coverage of medical facilities. The maternity and pediatric blocks of Jowai Civil Hospital have since been commissioned. The new wing of the Ganesh Das Hospital is also expected to be commissioned by the end of 1978-79. Under the Minimum Needs  Programme, construction of three Primary Health  Centres at Mawryngkneng and Patharkhmah in the Khasi Hills and at Jarain in the Jaintia Hills is being taken up shortly. Of the seven Primary Health  Centres, construction of which had been taken up earlier, two have since been commissioned and three others are expected to be commissioned shortly. Work on the Bhoi Lymbong dispensary is also expected to be completed within the current financial year. The School Health Programme which had hitherto been confined to schools in the Shillong area will be expanded in course of the next year  to four Primary Health Centres. As in previous years, programmes for the eradication of small-pox and malaria and control of leprosy were also undertaken.

Water Supply

23. Of the 131 Rural Water Supply Schemes  taken up by the Public Health Engineering Department since the inception of the State, 74 had  been completed by the end of March, 1977. Another 22 are expected to be completed by the end of  the current year. A total  population of 1,55,534 is expected to be  benefited. Considering, however, the magnitude of the State's  rural population, the achievement cannot be regarded  as significant. It may be of interest to note here that the Government of India have recently introduced a scheme for accelerated water supply in rural areas, under which  grants  are made available to the States for expeditious completion of ongoing schemes. The scheme, under which an amount of Rs.25 lakhs  has been sanctioned to the State in the current year, should give  a boost to the State's Rural Water Supply Programme. Due to difficulties in connection with land acquisition, work on the Greater Shillong Water  Supply Scheme has been stalled. Work on the New Jowai Water Supply Scheme is, however progressing satisfactorily, with commissioning being scheduled for 1979. On the question of maintenance of completed schemes, difficulties have arisen from time to time on account of the inability of the local authorities to should  this responsibility. The Government have, therefore, decided that completed schemes will be maintained by the Department for a period of five years after which the responsibility for maintenance will devolve to the concerned local bodies.

Roads and Bridges

24. The Hon'ble Members will agree that the benefits of development, whether in the sphere of agriculture, industry of social services, can accrue to the common man only if an efficient communications network is available. This is particularly true of a State like Meghalaya where alternative modes of transportation are totally lacking. It is, therefore, heartening to note that the  Plan outlay for roads and bridges is being progressively stepped up from year to year. The allocation for the sector, which was Rs.330 lakhs in 1976-77 and Rs.440 lakhs in the current year, is expected to be raised to Rs.525 lakhs in 1978-79. New roads covering a length of 130 kms  are expected to be constructed during the year. Another 150 kms. of new roads are proposed to be taken up in the next year. Black topping of a road length of 35 kms.  and construction of major  bridges to the extent of 100 rms. are other important achievements of 1977-78. Under the Minimum Needs Programme, an additional road length of 50 kms. connecting 100 villages is anticipated. The road construction programme has been so drawn up as to be able to generate optimum employment opportunities. During 1977-78, 13.81 lakhs mandays of employment were generated ; this will go up to the level of 22.77 lakh mandays in the next year.

Transport

 25. Meghalaya is the only State in the country other than Manipur which is not linked to the national railway network. It is therefore,  a matter of satisfaction for us that the railway authorities,  at the instance of the North Eastern Council, had undertaken a survey for a rail link between Byrnihat and Gauhati and found the proposed alignment to be commercially viable. It is our earnest hope that the Government of India would take a positive decision very soon on implementation of the Gauhati-Byrnihat Rail Link Scheme. The quota allotted to the State under the National Permit Scheme has been fully utilised and permits numbering 50 have been issued. The quota available to the State under the Zonal Permit Scheme has also been utilised substantially, 95 permits as against the quota of 100 having been issued so far. In accordance with a resolution of the Transport  Development, Council, the Government have decided  that reservation will be provided in the matter of granting permits for transport vehicles in favour of Scheduled Castes and Scheduled Tribes in the same ratio as laid down by the State Government for recruitment to public services. The Meghalaya  Transport Corporation is continuing its efforts to reorganise itself. It has increased the strength of its fleet and is taking steps to set up a well equipped  Central Workshop, so that the number of shut down vehicles may be reduced to the minimum.

Border Areas

26. Under the programme for the development of the border areas, priority is being given  to road construction activities. Efforts are being made to construct more feeder roads and facilitate transport of the local produce to markets within and outside the State. An important supplement to road construction is the scheme  for free transportation of products from the border areas. A fleet of 16 trucks is being utilised by the Department to  operate the scheme. An allocation of Rs.90 lakhs was earmarked for the programme in the current year. In the next year, the provision will be stepped  up to Rs.135 lakhs.

Tourism

27. Schemes aimed at developing the tourist potential of the State were continued. The  tourist Bungalow at Thadlaskein has been completed, while work on improvement of the monoliths at Nartiang is continuing. Construction of a tourist resort  complex at Umiam is proposed to be taken up in the next year. A proposal for construction of a motel at Nongpoh is also being considered. Due to organizational and other  difficulties, the Meghalaya  Tourism Development Corporation has not been able  to make an impact on the tourist map of the State. Steps to strengthen the Corporation  are under consideration.

Revised scales of pay to the employees Aided Schools

28. The benefit of revised scales of pay had been extended to the employees of aided schools with effect from 1st November, 1976. In consideration of the hardship caused to the employees, however, the State Government decided that this benefit  should be extended to them from an  earlier date, viz., the 1st  April, 1975. About 8000 employees belonging to the aided institutions have been benefited on this account.

Arrear Dearness Allowance

29. Due to constraint of resources, the Government had not been able to sanction dearness allowance as admissible to its employees with effect from 1st July, 1974, 1st July, 1975 and 1st July, 1976. All arrear dearness allowances admissible on these dates were, however, sanctioned by the Government during the current year. The benefit has also been extended to the employees of aided schools and colleges with effect from the 1st April, 1975. With a view to curb  inflationary pressures, only 50 percent of the dues  were paid in cash, the balance being deposited in the employees 'Provident Fund accounts.

30. Before proceeding to the budget estimates for the next year, I will  briefly give an account of the actuals for 1976-77 and the revised estimates for the current year.

Actuals 1976-77

31. The year opened with a negative cash balance of Rs.376.21 lakhs There  was a total receipt of Rs.21,743.98 lakhs  and a total expenditure of Rs.21,578.39 lakhs in that year under all accounts resulting in the surplus  of Rs.165.59  lakhs. The closing balance, therefore, stood at Rs.(-)210.62 lakhs at the end of the year against the revised estimate of Rs.(-)33.70 lakhs. It should however be mentioned that an amount  of Rs.164.50 lakhs in Government  of India Treasury Bills stood to our credit at the close of the year. In other words, the year  closed with a deficit of Rs.46.12 lakhs against the revised estimated deficit of Rs.33.70 lakhs.

Revised Estimates  1977-78

32. The revised estimates of receipts and expenditure under all accounts for the current year are Rs.24,364.80 lakhs and Rs.24,238.31 lakhs respectively. There is, thus, a likely surplus  of Rs.126.49 lakhs. This will enable us to reduce the negative opening balance of Rs.210.62 lakhs to Rs.84.13 lakhs. In spite of the heavy additional liabilities discharged by the State Government by way of releasing arrear dearness allowance and advancing the date of pay revision for the employees of the aided  institutions, the estimated deficit of Rs.424.32 lakhs is likely to be reduced to Rs.84.13 lakhs. This will be possible because of the additional assistance of Rs.4.46 crores  being given by the Government of India during the current year.

Budget Estimates 1978-79

33. I would now like to give a broad picture of the estimates for 1978-79. The receipt on revenue account is estimated at Rs.5342.07 lakhs. The estimated expenditure on revenue account is Rs.4242.93 lakhs. There is therefore a surplus of Rs.1099.14 lakhs on revenue account. The estimated receipt outside revenue account is Rs.20,065.59 lakhs and the estimated expenditure outside  revenue account is Rs.21,163.53 lakhs, leaving a deficit of Rs.1,097.94 lakhs. Together with the revenue surplus, there will be a nominal overall surplus of Rs.1.20 lakhs. This is expected to bring down the opening deficit of Rs.84.13 lakhs to Rs.82.93 lakhs at the close of the year.

   I may mention here that a credit of Rs.22.89 crores has been assumed on account of Central assistance  for the State Plan in the next year's  budget as against Rs.20.05 crores in the current year.

Deficit

34. I do not propose  any additional taxation measure to close this gap. The ways and means to cover the gap will be devised during the course of the year.

35. Sir, we are conscious that a backward State like ours has a long way to go before it can approach the level of development of the  more advanced States of the Union. Massive doses of investment supported by careful planning and effective implementation  are called for in this situation. Unfortunately, due to historical reasons the State suffers from grave limitations imposed by the constraints of resources, both financial and technical. The Budget proposals which I have submitted for your consideration seek to reflect the needs and aspiration of the people of the State; but they have had to be formulated within the framework of the limitations which are our legacy. Be that as it may, I am confident that with the co-operation  and assistance of all sections of this august House, we shall be able to march forward steadily towards the goal of eradicating poverty and raising the living standards of the people of the State. I would, therefore, request the Hon'ble Members  to strengthen the hands of the Government in its endeavour to build a more prosperous Meghalaya which can take its rightful place in the great Republic that is India.

36. With these words, Sir, I present the Budget for 1978-79 for consideration and acceptance of the House. As it may not be possible to complete detailed discussions on the budget proposals before the end of the financial year, I propose to move the House, in the first instance, for voting advance grants and for sanctioning  advance appropriation to enable the Government to defray its expenses for the first quarter of the next financial year.

JAI HIND


ANNEXURE

THE FINANCIAL POSITION FOR THE YEAR 1978-79 WITH CORRESPONDING 
POSITION IN THE PREVIOUS YEARS.

Rupees in Lakhs
Heads Actuals Actuals Budget Revised Budgets
1975-76 1976-77 1977-78 1977-78 1978-79
1 2 3 4 5 6
Opening Balance (-)1,82.99 (-)3,76.21 (-)33.70 (-)210.62 (-)84.13
Revenue Receipt 33,33.15 38,53.12 42,62.73 84,74.34 53,42.07
Capital Receipt under the Consolidated Fund 2,33.27 4,65.79 5,42.14 4,84.15 5,78.77
Capital Receipt under the Contingency Fund 12.81 ........ 75.00 4,00.00 75.00
Capital Receipt under the Public Account 50,63.56 1,74,25.07 62,43.93 1,86,06.31 1,94,07.82
TOTAL RECEIPT 86,42.79 2,17,43.98 1,11,23.80 2,43,64.80 2,54,07.66
GRAND TOTAL 84,59.80 2,13,67.77 1,10,90.10 2,41,54.18 2,53,23.53
Revenue Expenditure 27,35.54 30,10.86 36,37.88 41,21.62 42,42.93
Capital Expenditure under Consolidated Fund.    8,08.80 10,83.77 16,00.11 14,95.88 17,16.71
l Expenditure under the Contingency Fund 12.68 ...... 75.00 4,00.00 75.00
Out going from the Public Account 52,78.99 1,74,83.76 62,01.43 1,82,20.81 1,93,71.82
TOTAL EXPENDITURE 88,36.01 2,15,78.39 1,15,14.42 2,42,38.31 2,54,06.46
Closing Balance (-)376.21 (-)210.62 (-)424.32 (-)84.13 (-)82.93
GRAND TOTAL 84,59.80 2,13,67.77 1,10.90.10 2,41,54.18 2,53,23.53
NET RESULT :-
(a) On Revenue Account (+)597.61 (+)842.26 (+)624.85 (+)752.72 (+)1099.14
(b) Outside Revenue Account (-)790.83 (-)676.67 (-)1015.47 (-)626.23 (-)1097.94
(c) Net excluding the opening  Balance (-)193.22 (+)165.59 (-)390.62 (+)126.49 (+)1.20

 Note :- (+) Indicates Surplus and (-) indicates Deficit.