MR. SPEAKER, SIR,
I feel greatly privileged in having this honour to present the Budget Estimates of the Government of Meghalaya for the financial year 1988-89.
2. The year 1987-88 witnessed serious setback to the National Economy due to widespread and unprecedented drought in Northwestern and Southern parts and severe floods in Eastern parts of the country, followed by higher rate of inflation and steady rise in price index. According to the pre budget Economic Survey for 1987-88 presented before Parliament, the Gross National Product of the country, in spite of this setback, is anticipated to show a positive growth rate of around one to two percent. Foodgrains production during the year is expected to decline by 7 to 10 percent from the previous year's level of about 150 million tonnes. According to the Survey, the industrial performance was highly satisfactory. During the first eight months of the year the industrial sector as a whole achieved a growth rate of 10.2 percent which is significantly higher than the growth rate of 8.5 to 9 percent attained during the corresponding period of previous three years. The manufacturing sector showed even a higher growth rate of 11 percent in the first eight months of 1987-88. Even allowing for some expected slowdown in industrial activity towards the end of the financial year, the survey expects that industrial growth for the full year will exceed 8 percent. The price situation during the year, according to the survey, has not been as alarming as in the earlier drought years. The wholesale price has gone up by 9.8 percent between the end of March, 1987 and 3rd week of January, 1988. The performance of the infrastructure sector remained satisfactory. Although hydel power generation fell sharply because of rainfall scarcity, this was compensated by large growth in thermal power generation. As a result, power generation increased by 7.6 per cent during April- December, 1987 over the corresponding period of 1986. Coal production increased by 10.2 percent during April - December, 1987. Railway freight movement was satisfactory recording a growth rate of 5.4 per cent in the first nine months of the year. Export performance in the first nine months grew by 24.6 percent in the current year as compared to the corresponding period of the preceding year. Import grew by 13.5 percent in April-December, 1987 compared to 2.2 percent in 1986 - 87. In consequence, there was a further decline in trade deficit in the first nine months of 1987-88.
Economic condition in Meghalaya
3. The performance of the State Economy appears to have maintained, by and large, the tempo of the previous years. Agricultural activities appear to be better as compared to the previous year. As per provisional estimates, the State Domestic Product at current prices which was Rs.26,321 lakhs in 1984-85 increased to Rs.30,072 lakhs (quick estimates) in 1985-86, indicating a rise of about 14.3 percent over the preceding years. Due to fall in agricultural production the rise of State Domestic Product during 1986-87 is likely to decelerate but is likely to accelerate during 1987-88 in view of better performance of agriculture during the year.
While there was no new addition to the number of registered factories during the past two years, the number of small scale industrial units in the State increased from 671 in 1985-86 to 802 in 1986-87. The cement manufacturing factory at Cherrapunjee, the major manufacturing plant in the State, achieved production of 97090 M.T.of cement during 1987 as compared to 96510 M.T. produced during 1986.
The outlook of mineral production does not appear bright. The production of coal upto October, 1987 was 8.51 lakh tonnes as against 11.85 lakh tonnes during the corresponding period of the previous year. Similarly, limestone production up to October 1987 recorded a lower production of 1.86 lakh tonnes as compared to 3.42 lakh tonnes during the corresponding period of the previous year.
Power generation witnessed a considerable improvement, recording a generation of 350.81 MKWH upto December, 1987 as compared to 301.46 MKWH during the year 1986-87. As regards rural electrification programme the total number of villages electrified in the State increased from 700 in 1980 to 1498 in December, 1987. However the level of rural electrification in the State still continues to be very low being only 32.7 percent as compared to 67.8 percent in the country as a whole in March 1986.
Banking activities in the State expanding fast in recent years. The total number of bank offices of the Scheduled Commercial Banks in the State which was 79 only in June, 1983 increased to 133 by June, 1987. These 133 Bank Offices include 43 branches of Regional Rural Bank including 3 new branches opened during the year. The volume of deposits and advances by these banks is also increasing over the years.
The rise in prices, as in the whole of the country, continued to cause concern. Wholesale prices of some selected commodities indicate that price rise during the year was higher compared to the previous year. The average annual wholesale prices of rice increased during the year by 4.5 percent as compared to 3.5 percent in the previous year. The average annual wholesale price of Mustard Oil, Onion and Vanaspati recorded much higher rise during the year as compared to the rise in the previous year.
Deterioration in law and order situation in the State with frequent bandhs and hartals also contributed to the rise in prices. The law and order situation, moreover, did adversely affect the development programmes in the State.
On the employment front the total public sector employment in the State increased to 55,639 in March, 1987 from 53,240 in March, 1986 while total employment in the private sector establishments employing 10 or more workers declined marginally from 4621 in March,1986 to 4,566 in March, 1987. The total number in the Live Register of the employment exchanges of Meghalaya increased from 20,135 in January, 1986 to 23,583 in January, 1987.
4. the year 1988-89 will be the fourth year of the Seventh Five Year Plan. The outlay for 1988-89 has been fixed at Rs.130 crores compared to the outlay of Rs.110 crores for 1987-88, representing an increase of about 18 percent. The Sectoral allocation of the Annual Plan has been indicated in Annexure I.
After considering the past experience and needs of the State, the development programme has been so fixed to ensure balanced development of all sectors with particular emphasis on :-
|1. Development of infrastructure.|
|2. Provision of social and community services and human resource development.|
|3. Intensification of activities under agriculture, horticulture and allied sector.|
|4. Employment generation with stress on Poverty Alleviation Programmes.|
In addition to above, emphasis will be given to the completion of ongoing programmes, monitoring and use of latest technology.
The State Government have constituted District Planning and Development Councils to decentralise the planning process. Planning Machinery at all levels will be strengthened and streamlined during 1988-89. Inter -departmental coordination will be improved at all levels so that maximum impact of development programme takes place.
Science and Technology
5. Science and Technology cell under Planning Department has undertaken a number of innovative schemes to bring the benefit of latest developments to the people. Meghalaya chulha in particular has been quite popular and successful and our State won an Award in 1987 from Government of India. Activities of the cell will be further intensified in 1988-89 with special emphasis to the introduction of appropriate technologies for rural areas. More programmes will be taken up to popularise latest advances in science among the students in particular and common people in general. State Council for Science and Technology and Environment has started functioning and will provide overall guidance and advice to innovative efforts of Science and Technology cell and other Government Departments.
Agriculture Cooperation and Community Development
6. Agriculture being the primary occupation of over 80 percent of the State's population, Government are committed to ensure increased productivity of the principal agricultural and horticultural crops of the State by intensified use of appropriate technology and adoption of suitable scientific methods to achieve economic and optimum level of agricultural and horticultural outputs. In view of the immense horticultural potentials of the State, Government have decided to strengthen departmental infrastructure to ensure intensified horticultural activity. The on-going programmes taken up in collaboration with Indian Council of Agricultural Research for intensified transfer of a package of technologies for increased rice production in the principal rice growing valleys of the State will be intensified. A scheme for extending credit-cum-subsidy assistance for raising selective horticultural plantations will be taken up. A large size horticultural nursery will be established to ensure adequate availability of plantation materials. Credit-cum-subsidy assistance will be extended to encourage the raising of microsized tea-plantations. An additional area of 2,500 hectares will be brought under assured irrigation competed to 1,800 hectares during 1987-88. The centrally sponsored Command Area Development Programme will be implemented more intensively to ensure fuller and optimum utilisation of the Command Area of the existing projects.
Two large size seed farms will be created within the year to ensure adequate availability of improved seeds. A Central Task force has invited the State at our request and have examined the bottlenecks for growth of horticulture and marketing of horticultural products. The recommendations of the Task Force are expected shortly. The recommendations will be implemented at once and steps taken to establish suitable Processing Units in keeping with such recommendations for adding value to our horticultural products and ensuring for better market ability thereof. The State Cooperative Marketing Federation (MECOFED) has entered into a joint venture with the National Agriculture Cooperative Marketing Federation (NAFED) for marketing of our major agricultural and horticultural produces. Steps are being taken to channelise such marketing through the Primary Agriculture Cooperative Societies. the East Khasi Hills District has been brought under the Intensive Cooperative Development Programme and it is expected that marketing bottlenecks of the area will be suitably resolved. In view of the new schemes in hand, it is expected that the State Cooperative Apex Bank would be able to channelise its available funds on long term loans for agricultural and horticultural projects in addition to continued issue of crop loans.
Compulsory linkage of subsidies under the Integrated Rural Development Programme with institutional credit has been effected since the beginning of 1987-88. Steps will be taken to accelerate the flow of such credit for rural development activity to ensure that Poverty Alleviation Programmes in 17 Blocks of the State. The District Rural Development Agencies shall be manned by full time Project Directors and the number of Village Level Workers (Gram Seven) will be increased to ensure effective implementation of Poverty Alleviation Programme. The State Institute of Research and Training in Rural Development will be made functional during the year and will cater to the entire training needs of field-level development functionaries in the State. Three hundred shelter less families will be provided dwellings under the Indira Awas Yojna Programme.
Steps will be taken to ensure the fuller utilisation of facilities available for Cash-crop development from National and Regional Organisations such as the Spices Board, Tea Board, the Rubber Board, NERAMAC, Cotton Corporation of India, the Jute Corporation of India, etc. Steps will also be taken to strengthen all State level Cooperative and Agricultural Institutions including the Meghalaya State Agriculture Marketing Board to ensure coordinated and meaningful thrust for the development of agriculture and horticulture, for accelerating the total socio-economic development of the rural community of the State.
Animal Husbandry and Veterinary
7. Livestock and Dairy Development has tremendous potential in transforming the rural economy of Meghalaya. A planned and sustained thrust in improving the breeding stock of cattle, pigs and poultry and ensuring proper health coverage to them will be the main objectives of the Department. Full Coordination will be maintained with the DRDAs to make IRDP scheme successful. Candidates will continue to be sponsored to study in Animal Husbandry and Veterinary disciplines to meet future manpower requirements.
8. As Hon'ble Members are aware, Soil is practically a non-renewable resource and with our heavy rainfall and agricultural practices, activities of Soil Conservation Department assume great importance for Meghalaya. Basically the Department would seek to conserve the existing soil and to revitalise heavily eroded areas. To achieve these objectives the Department has been implementing schemes for afforestation, promoting cash and horticultural crops and providing irrigation facilities in affected areas, besides educating the rural people in soil conservation measures. Besides these, demonstration schemes and research work are also taken up. During 1988-89 activities of the Department would be further intensified and public participation enlisted to the fullest extent so that the future generations are not deprived of Soil, the very basic for agricultural operations.
9. Forests are one of the most important renewable resources of Meghalaya. My Government is seriously concerned about the depletion of the forests with the serious effects on the climate, flora and fauna and the overall economy. A three-pronged approach will be followed to ensure that the forest wealth of the State is preserved and if possible augmented.
Firstly, intensive measures will be undertaken to protect the Government forests from encroachment and illegal felling. Secondly, under various programmes tree plantation would be taken up with public cooperation to restore on the Wild-Life of the State. This endeavour will of course be coupled with public education. Thirdly, proper management plans will be implemented in Balpakram National Park and other Government Forests to make them a model for other parts of the State. In this context, I am happy to say that recently in December, 1987, the Prime Minister dedicated Balpakram National Park to the nation. Very soon sanctuaries at Nokrek Ridge will also be operational.
In pursuance of above strategy as against an achievement of afforesting 719 hectares of land in catchment area of Umiam - Umtrew in 1987-88, plantation in 1988-89 is targeted at 1000 hectares. As against 24 lakh seedlings distributed in 1987-88 under the 20-point programme as many as 30 lakh seedlings will be distributed during 1988-89. I have full confidence that the efforts in this sector will be checked and reversed.
We are aware of the sufferings caused to some people due to depredation by wild elephants and other wild animals. Forest Department has a scheme to help the affected people. The scheme shall be made more effective so that prompt and sufficient assistance is made available to the victims and serious efforts will be made to find measures to reduce such incidence of depredation.
10. As the Hon'ble Members are aware fishes from important part of the diet of our people, and are mostly imported from outside the State. Due to environmental degradation and destruction of fishes by use of explosive, etc., the fish-production within the State is coming down. There is a good scope for pisciculture both in Hills and Plains of the State. The approach of the Department will be to train the people in pisciculture, make available fish seeds at low prices, and ensure proper support both technical and financial. Existing lakes and reservoirs would be developed in a phased manner with suitable pisciculture techniques and in addition to existing projects, Kyrdemkulai and Nongmahir reservoirs will be taken up from MSEB for development. Last but not the least, it is proposed to check illegal destruction of fishes by explosives and poison by educating the public and by strengthening the River Guard Force.
11. With its mountainous terrain, Meghalaya has excellent scope for hydro-power generation. The work on Umtrew-Umiam Stage IV is making good progress; the first unit of 30 Megawatts will be commissioned by December, 1989 and the second unit of 30 Megawatts by March, 1990. A detailed project report of Leishka Hydro Electric Project State I is under preparation. Preliminary studies have been initiated to survey power potential of various river basins in the State. Anticipated achievement under Rural Electrification is expected to be 150 villages in 1987-88, the target for 1988-89 being 200 villages.
Mining and Geology
12. The Department will continue its mineral investigation programme that the rich mineral wealth of the State is properly mapped out for suitable utilisation in future. The thrust of the Department for 1988-89 will be on investigation of Coal, Kaolin, White clay and Granitic deposits in various parts of the State.
13. Besides helping the local economy, tourism in its truest sense promotes National Integration. In 1988-89 the Tourism Department will intensify its activities by development of scenic spots, creating proper tourist accommodation and disseminating publicity materials to promote Tourism.
Human Resource Development
The goal to impart education in the truest sense of the word to our youth and even to adult members of the society will receive high attention of the Government. A thorough examination of the present education system will be done to make it more effective and suited to our local conditions. Upgradation of infrastructure, provision of minimum basic amenities to schools and colleges, proper training of teachers, coverage of remote areas will form part of our policy. Efforts for Adult Literacy will be further intensified so that within a foreseeable future no willing adult should remain illiterate for lack of opportunity. As Hon'ble Members know our students need stress on science and mathematics to compete in the modern world, suitable steps will be undertaken to remedy deficiencies in this sphere. All possible efforts to improve conditions of teachers at all levels will be made.
As regards Technical Education facilities in Shillong Polytechnic is being expanded. Community Polytechnics are being set up to ensure transfer to technology to rural areas.
Presentation and preparation of tribal identity and culture will be given due priority and concrete and innovative steps will be under taken in this regard.
The details of our new thrust in Education will be announced very soon on the floor of the House in this Assembly session.
Sports and Youth Welfare
15. As the saying goes "Healthy minds in healthy bodies", the Department seeks to develop sports infrastructure, identify and nurture sports talent amongst the youth and organise competitive sports to foster proper spirit. The sports stadia in District and Subdivisional Headquarters are making steady progress. Our boys and girls have shown commendable performance in various sports and games and with intensification of departmental activities the State will surely make national and even International mark.
Health and Family Welfare
16. To attain the goal of "Health for all" by 2000 A.D. the basic approach of Health and Family Welfare Department will be firstly to ensure basic health facilities within easy reach of the people in all areas; secondly to make available specialised and advanced facilities within the State and thirdly to ensure proper coverage of Health and Family Welfare machinery throughout the State. Medical research and efficient functioning of Pasteur Institute at Shillong would also be an important objective. The Health Administration would be streamlined to achieve above objectives. As against construction of 1 Community Health Centre, 6 Public Health Centres and 70 Sub-Centres. Cobalt Therapy Unit at Shillong Civil Hospital, 100 bedded Hospital, Tura and Leprosy Ward at Umden will also become operational during 1988-89. Setting up of Centres and Hospitals is not enough, we shall endeavour that people get proper service. Planned deputation of candidates will continue to be made to Medical Colleges and to Schools for Nurseries and Pharmacists to meet the manpower needs for future.
17. Problem of unemployment, both in urban and rural areas of the State, is receiving our earnest attention. In rural areas, NREP and RLEGP, being executed through DRDAs by Community Development , provide means of tackling seasonal unemployment and also creation of community assets. Our performance has been fairly satisfactory in this sphere. In order to help our youth to stand on their own feet and not to seek only Government jobs as the sole means of employment, Training of Rural Youth for Self Employment Programme (TRYST) and Self Employment for Urban Youth Programme (SEEDY) will be further activated. Besides the three Industrial Training Institutes at Shillong Tura and Jowai, run by Labour Department to train up young people in various skills, in 1988-89 and ITI meant solely for women would be set up in Shillong.
Border Areas Development
18. Our people on the Indo-Bangladesh Border are yet to overcome the economic disruption caused by the partition of the country. The Border Areas Development Department was specially set up to look after the interest of the people of the Border Areas and to normalise their economy, a number of schemes have been under implementation for welfare of Border Areas. These activities will be further intensified during 1988-89.
Transport & Communication
19. As Hon'ble Members are aware, functioning of Road Transport system is of greatest importance to the economy of the State in the absence of other means of communication. My Government is giving due importance to this sector. Recently a helicopter service has been introduced connecting Shillong, Tura and Guwahati. Besides the Airport at Umroi; the foundation stone for Tura Airport has recently been laid by Hon'ble Prime Minister. At present Meghalaya Transport Corporation is operating 36 routes covering 4146 Km or road length. Functional efficiency of Meghalaya Transport Corporation will be further improved so that it can really serve the people. The Transport Department is undertaking a number of schemes to provide amenities to the Highway Truck Operators and to train the drivers on scientific lines. The Communications Department will coordinate with Central Government Departments to provide reliable postal and telecommunication facilities to various parts of the State.
20. The Social Welfare Department basically takes care of the special needs of women, children and physically handicapped. In the year 1987-88 training was imparted to 50 handicapped persons in rural areas, ICDS coverage was given to 4522 children and 7447 mothers and in urban areas 3900 children and 1300 mothers were covered under Special Nutrition Programme. In 1988-89 greater thrust will be given to the Departmental schemes for welfare of weaker sections. Voluntary Agencies will also be given full encouragement in undertaking their activities in coordination with the Department.
I am worried about the Drug problem which is already affecting the youth of other parts of our country. Stringent action to control this menace will be initiated. Illicit distillation, which effects the health of thousands, will also be curbed to the extent possible.
Sericulture and Weaving
21. Sericulture and handloom weaving play an important part in household economy of rural areas of the State being practised by the women-folk, the strategy of the Department will be to provide training facilities, to increase production through introduction of improved looms, and to provide forward and backward linkages for supply of inputs and marketing arrangements. Besides the Department, the Meghalaya Handloom and Handicraft Development Corporation and the Meghalaya Apex Handloom Weavers and Handicraft Corporation Federation area also active in implementing the above strategy;. The Central Silk Board has also undertaken a Research and Training Institute and setting up of Mulberry Demonstration Units for qualitative and quantitative improvement in Muga, Eri and Mulberry Silk culture in various parts of the State.
22. In the Industrial Sector our policy would be to promote tiny and small industries run by our people based on locally available raw materials. We shall attempt a quantum jump by promoting high-tech Industries in the fields of Electronics and Computers. The medium and large scale industries to be set up in our State must match our aspirations and the environment must be protected. Step to adopt single window approach would be considered to help the entrepreneurs in a meaningful way.
The projects for Siju Cement Plant and Tantalum Capacitator Plant at Umiam are in an advanced stage. Steps are being taken to improve efficiency and profitability of MCCL, to make it a viable unit.
Our State has had a peaceful industrial climate and efforts of Labour Department will be to see that this happy state of affair continues for the future.
23. My Government gives high priority to Housing sector. The Government strategy for Housing will be firstly, to provide quality housing facilities to the houseless and economically weaker sections; secondly, to make available finances for construction of houses in urban areas and growth centres for the people in general and the Government servants in particular and thirdly, to upgrade in a phased manner, the dwelling houses available to the rural population. Model Housing Projects would also be undertaken un urban and other rapidly growing areas. In pursuance of above strategy, Housing Department is working our a realistic and time bound approach in coordination with National Agencies and concerned State Government departments and a qualitative improvement within 10/15 years in the housing situation will be targeted.
24. The Public Works Department is the biggest Department in the State entrusted with the construction of Roads and Bridges, Major Irrigation Projects, buildings, etc., and with the maintenance of these assets. The immediate objective of the Public Works Department will be to complete the ongoing road and building Projects so that the benefits may flow to the people in a fixed time frame. By the end of 1988-89, the State is expected to achieve total road length of 5558 Km. with a road density of 24.78 Km/100 Sq.Km. We have a long way to go in this regard. Hon'ble Members will be happy to know that the Central Government has accepted our proposal for National Highway Diversion for Shillong and Jowai in principle and follow up action is being taken. Besides the PWD, we have Meghalaya Government Construction Corporation and other agencies executing the construction works and construction and maintenance of Government by doings by various agencies will be coordinated and apportioned on scientific lines.
The works on Rongai Valley Medium Irrigation Scheme will start from the next working season, i.e. October, 1988. The flood embankment works also taken up during 1988-89 by the PWD will benefit 320 hectares covering 3 villages
Public Health Engineering
25. Provision of safe and potable water in sufficient quantity to the people, especially in problem villages, by the end of 'International Water Supply and Sanitation Decade (1981-91) has been one of the objectives of the PHE Department. Provision of sufficient water supply to Urban Areas of Shillong and Tura is another equally important objective of the Department. The progress made by the PHE Department has been fairly satisfactory taking into account the problem of acute scarcity of trained manpower faced by it. In 1988-89 Phase 1 of the Greater Shillong Water Supply Scheme is expected to be fully operational. As many as 700 villages are targeted to be covered under RWS in 1988-89. Besides water supply schemes, the Department is constructing sanitary latrines to improve public hygiene and 1,000 latrines are targeted for completion in 1988-89.
26. My Government will work in close coordination with the District Councils to achieve the mutual goals of development of the State and welfare of its people. As against Rs.60 lakh provided during 1987-88, an amount of Rs.65 lakh is being provided in the Plan for the year 1988-89.
Municipal Administration & Town Planning
27. For 1988-89 the two municipalities of Shillong and Tura would be assisted financially to continue their normal activities and to under-take developmental work. The Scheme for Integrated Development of Small and Medium Towns (IDSMT) covering Shillong, Tura and Jowai, with the help of Government of India and UNICEF, is being actively implemented. Steps are being taken to prepare master plans for various District and Subdivisional headquarters to ensure to the Bill for constituting Urban Development Authority is expected shortly.
28. Land Survey and preparation of records, which is a must for scientific planning of development programmes, is going on with cooperation of the Autonomous District Councils and the people. Acquisition of land is prerequisite for implementation of many development schemes and steps are being taken to ensure that land acquisition cases proceed in a time bound fashion and public grievances are minimized. As regards International Boundary, Work on restoring missing pillars is making good progress. The Chandrachud Committee Report has been received and as agreed earlier with the Assam Chief Minister will be made public after discussion between the two Chief Ministers.
The whole State was effected by floods and heavy rainfall in 1987. Immediate relief was provided to the people and temporary restoration work taken up. The Government of India has been presented with a Memorandum for financial assistance.
Food and Civil Supplies
29. In a food deficit State like Meghalaya, efficient functioning of public distribution system is of importance to provide minimum essential commodities to the people at reasonable prices. In 1987-88, due to disruption of communications by floods in North Eastern Region and the situation in the State, overall supply position was not quite satisfactory. In 1988-89 the Department will try to ensure timely supply of essential commodities under public distribution system of essential commodities in rural areas. Enforcement will also be geared up to check malpractices and to ensure that proper quality and quantity of essential commodities reach the people. As Hon'ble Members are aware, rice and wheat are consumer under integrated Tribal Development Programme of the Central Government at subsidised rates. It is expected that this scheme will be continued for 1988-89. There is a State Government transport subsidy scheme to help people in the Border areas. This scheme will be continued in 1988-89 with a physical target of covering 3 lakhs quintals of rice as against 2.50 lakhs quintals for 1987-88.
Consumer Protection is one of the important concerns of the Government. We have constituted State Level Consumer Protection Council and District forums will soon be set up. Consumer Protection is basically voluntary movement and we shall involve various social Organisations in this work. The Department will conduct various programmes to sensitize the people about their rights and to foster a strong consumer movement in the State. Activities of Weights and Measures Department will also be geared up to protect the consumers against malpractices. Health Department to will intensify its activities to check food adulteration to protect the people from unscrupulous traders.
Information and Public Relations
30. No Government programme can succeed without genuine public participation and the Information and Public Relation Department has a vital role to play in informing the people about Government plans and schemes and enlisting their help and cooperation. Besides its normal schemes in 1988-89, the Department. Video films on important programmes to involve the people of the State, especially in rural areas in economic development pursuits.
Ninth Finance Commission
31. As Hon'ble Members are aware the Ninth Finance Commission is functioning since the 17th June, 1987. The Commission is not only to apportion resources between Centre and States but also to assess Non-Plan Revenue and Capital gaps, debt position of the States, etc. and to suggest corrective measures. The first report of the Commission covering a period of one year commencing from 1st April, 1989 is expected to be submitted by 30th June, 1988; the second report of the Commission covering a period of five years (1990-95) would be submitted by the middle of 1989.
The State Government have placed its requirement of funds for 1989-90 before the Commission. The State Government Memorandum covering the period 1st April, 1990 to 31st March, 1995 is being finalised for submission to the Commission. In the Memorandum special its backwardness, population structure and need for its time bound development, would be highlighted. It is expected that as done by the past Finance Commissions, the Ninth Finance Commission would give due consideration to the needs of Meghalaya.
32. No programme for development, however well-conceived, can be successful without proper monitoring and resultant corrections. A separate Department of Programme Implementation has, therefore, been set up for overall monitoring of progress of Development Schemes in various sectors. The Department will be staffed by trained and experienced personnel and will help in achieving the objectives of Development Programmes.
Police, Civil Defence and Home Guards, Jails
33. Police modernisation is proceeding at a reasonably satisfactory pace. Computer Cell and Forensic Science Laboratory would be fully functional son. Plans are afoot to connect all Police outpost by VHF network. Increase in mobility of Police is also receiving due attention. Our State is prone to fire accidents during winter and the dry season and 5 fire stations will be set up during 1988-89 in various parts of the State taking their total number to 31.
The Government has been paying due emphasis on Police housing. As against an amount of Rs.200 lakhs spent during 1987-88, an amount of Rs.300 lakhs would be earmarked for this purpose in 1988-89. By the end of Seventh Plan period the level of satisfaction is expected to reach about 42 percent.
To inculcate a spirit of self reliance and to assist the community in times of emergency, suitable training is being imparted to Home Guards and Civil Defence volunteers from urban and rural area. Border Wing Home Guard assist in guarding Indo-Bangladesh Border under overall control of the BSF. Home Guards assist the Police in law and order duties and guarding vital installations. The activities of the Department will be continued for 1988-89.
Three new Jails are under construction at Tura, Williamnagar and Jowai. Model Jails and a Jail for lunatics will be taken up at Shillong and a Sub-Jail will be taken up at Nongstoin. With completion of these schemes there will be substantial improvement in Jail administration in the State.
34. In our State, success of development programmes and overall peace and prosperity requires contended, hardworking and disciplined Government servants. The Government, therefore, places great emphasis on welfare and career development of the Government servants. The 2nd Meghalaya Pay Commission was set up in October, 1986. The Commission submitted their interim relief to serving employees and pensioners, revision of Traveling Allowance, Dearness Allowance rates, conveyance allowance, etc., have been taken. Although the work of the Commission was affected by the prevalent situation in the State last year, their final report is expected shortly. Meanwhile the Government have also granted an advance equal to one month's pay plus Dearness Allowance to Government servants, which is to be adjusted after the Government decision on pay, etc., on receipt of final report of the Commission.
Plans are being drawn up to improve working environment of Government servants, where they spend almost one-third of their life, and also to give training, and opportunities for advanced studies to enable willing employees to develop themselves. Steps are being taken to redress genuine service grievances of Government servants. Action will be taken to improve the overall administrative efficiency. Residential accommodation for Government servants, especially in Shillong, would be taken up a priority level by the Government. In addition to financial assistance to them for constructing own houses, mentioned already, I hope the above measures will be perceptible effects on functioning of the Government and will increase the degree of public satisfaction.
Sir, I have broadly indicated the programme of the important departments for the coming year. I would now like to present a brief account of the actuals for 1986-87 and revised estimates for 1987-88 before I mention about the Budget estimates for 1988-89.
Actuals 1986 - 87
During the 1986-87, the receipts and expenditures on all accounts were Rs.1,36,976.10 lakhs and Rs.1,37,934.08 lakhs respectively creating a deficit of Rs.957.98 lakhs. This deficit increased the negative opening cash balance of Rs.720.08 lakhs to Rs.1,678.06 lakhs. However, at the end of the year, the State Government had an amount of Rs.3,054.00 lakhs invested in the Government of India Treasury bills.
Revised Estimates 1987 - 88
The year 1987-88 opened with a negative cash balance of Rs.1,678.06 lakhs and with holding of Rs.3,054.00 lakhs sin the Government of India Treasury bills. With the encashment of the entire holdings in the Treasury bills the total receipts under all accounts have been estimated at Rs.1,45,530.64 lakhs and the expenditure at Rs.1,43,551.51 lakhs leaving a surplus of Rs.1,979.13 lakhs. After wiping out the entire negative cash balance of Rs.1,678.06 lakhs, the year 1987-88 is likely to end with a surplus of Rs.301.07 lakhs.
Budget Estimates 1988 - 89
The year 1988-89 is expected to open with a cash balance of Rs.301.07 lakhs. During this year, the Revenue receipts and revenue expenditure have been estimated at Rs.29,884.10 lakhs and Rs.23,033.91 lakhs respectively leaving a surplus of Rs.6,850.19 lakhs. Outside of Revenue Account, the estimated receipts and expenditure are Rs.1,22,560.40 lakhs and Rs.1,30,524.99 lakhs respectively leaving a deficit of Rs.7,964.59 lakhs which will be substantially reduced by the revenue surplus of Rs.6,850.19 lakhs. Taking all accounts together the deficit works out to Rs.1,114.40 lakhs which will be reduced to Rs.813.33 lakhs due to the opening cash balance. The broad details have been indicated at Annexure II.
Additional Resource mobilisation and measures to cover deficit
We expect substantial assistance from the Central Government as in the case of some States to cover the losses in the Helicopter service which has been introduced recently. The assistance will bring down the gap to Rs.513.33 lakhs. To cover this estimated deficit it is necessary to introduce fresh measures of additional resources mobilisation. An additional amount of Rs.30 lakhs is expected from the State Lottery.
It is proposed to levy a sales tax of 7 paise in a rupee on the woven fabric of silk or of silk waste and on butter not sold in sealed containers. The tax on motor spirit is proposed to be raised from 20 paise per litre to 26 paise per litre. The sales tax on lease of video cassettes from the video lending shops or libraries will be increased from 2 percent to 10 percent of the lease amount, with a provision for compounding the tax to a lump sum in a year. The Betting Tax on stake money on arrow shooting will be raised from 15 percent to 20 percent and and the license fee to Rs.200 per license per quarter. To arrest and reverse the trend of fall in revenue from the sales tax on motor vehicles, motor vans, trucks, lorries, chassis and all varieties of trailers, the incidence of this tax will be reduced from 7 percent to 5 percent. It is also proposed the lumpsum rate of passenger' and goods' tax by 25 percent over the existing lumpsum rate, though the rate of taxation on these items are not being modified. It is also proposed to enhance the annual license fees on Indian Made Foreign Liquor Licenses; fees for wholesale and Bond license from Rs.5,000 to Rs.10,000; for retail sale of foreign liquor 'off' and 'on' the premises from Rs.1,500 to Rs.3,000; for retail sale of foreign liquor in hotels and restaurants from Rs.1,500 to Rs.3,000; for Bar License from Rs.1,500 to Rs.3,000; for distilleries from Rs.10,000 to Rs.15,000 and for canteens from Rs.400 to Rs.1,000.
All these levies are expected to yield an additional revenue of Rs.70 lakhs in a year. The relevant Bill is being introduced.
It is also proposed to levy a cess, for proper management of primary education, on major minerals at the rate of Rs.10 per metric tonnes of coal; Rs.10 per metric tonne of sillimanite; Rs.2.80 per metric tonne of limestone; and Rs.1.25 per metric tonne of fire clay. It is also proposed to take effective steps to eliminate leakage of royalties on major minerals, particularly coal, in consultation with the District Councils. These measures are likely to yield an additional revenue of Rs.200 lakhs. The legislative measure is likely to be introduced during the current session.
We are examining to introduce a modest tax on the lodging charge of the hotels in Shillong town.
The estimated deficit will thus be reduced further by Rs.300 lakhs by the measures indicated above. I also expect that the balance gap of Rs.213 lakhs can be reduced substantially by enforcing strict economy in the non-development expenditure and also by improvement in the collection of Government revenues and other dues to the Government.
We have decided to set up a Tax Resource Survey Committee to advise on the ways to mobilise additional resource as well as to rationalise the existing taxation structure.
With these few words, Sir, I beg to present the Budget estimates for 1988-89 before this august House for approval. I also propose that the House may grant a vote-on-account to enable the Government to carry on its duties and responsibilities from the first day of the next financial year as the discussions and voting on the Budget Grants will not be completed by the 31st March, 1988.
Statement showing the sectoral allocation under 'State Plan' for 1987 - 88 and 1988 - 89
(Rs. in lakhs)
|A. ECONOMIC SERVICES|
|I. Agriculture and Allied Services -|
|Soil and Water Conservation||340.00||350.00|
|Forestry and Wildlife Preservation||640.00||
|Food Storage and Warehousing||7.00||7.00|
|Agricultural Research and Education Investment in Agriculture||15.00||25.00|
|Other Agricultural Programme-|
|(a) Marketing and Quality Control||35.00||40.00|
|TOTAL - I- Agriculture and Allied Services||1,753.00||2,115.00|
|II Rural Development|
|Special Programme for Rural Development|
|(a) Integrated Rural Development Programme (IRDP)||96.00||109.00|
|(b) Integrated Rural Energy Programme (IREP)||15.00||19.00|
|(c) Pilot Project for Village Development||10.00||10.00|
|Rural Employment :-|
|National Rural Employment Programme (NREP)||37.00||41.24|
|Community Development and Panchayats||70.00||72.00|
|State Centre for Research and Training in Rural Development||5.00|
|TOTAL -II- Rural Development||268.00||286.24|
|III. Special Area Programme|
|Border Area Development Programme||210.00||210.00|
|Total - III - Border Area Development||210.00||210.00|
|IV. Irrigation and Flood Control|
|Major and Medium Irrigation||10.00||30.00|
|Command Area Development||200.00||20.00|
|Flood Control Projects||25.00||30.00|
|Total -IV -Irrigation and Flood Control||235.00||310.00|
|V. Energy -|
|Non-Conventional sources of Energy (NRSE)||18.00||20.00|
|Total -V- Energy||2,518.00||3,120.00|
|VI. Industry and Minerals :-|
|Village and Small Industries||69.00||90.00|
|Sericulture and Weaving||61.00||75.00|
|Industries (Other than Village and Small Industries)||261.00||450.00|
|Total - VI- Industry and Minerals||441.00||670.00|
|Roads and Bridges||1,500.00||1,850.00|
|Other Transport Services||235.00||......|
|Total - VII-Transport||1,752.00||2,085.00|
|VIII. Science, Technology and Environment|
|Scientific Research including Science and Technology.||15.00||15.00|
|Ecology and Environment||5.00||5.00|
|Total-VII- Science, Technology and Environment||20.00||20.00|
|IX. General Economic Services|
|Secretariat Economic Services||7.00||15.00|
|Survey and Statistics||6.00||11.00|
|Weights and Measures||6.00||10.00|
|Total -IX- General Economic Services||100.00||125.00|
|Total A-ECONOMIC SERVICES
|B. SOCIAL SERVICES :-|
|X. Education, Sports, Arts and Culture|
|Art and Culture||25.00||80.00|
|Sports and Youth Services||52.00||60.00|
|Total-X- Education, Sports, Arts and Culture||870.00||1,203.50|
|XI Health :-|
|Medical and Public Health||360.00||358.82|
|TOTAL - XI Health||360.00||358.82|
|XII Water Supply, Housing and Urban Development:-|
|Water Supply and Sanitation||950.00||950.00|
|House building Advance||55.00||55.00|
|TOTAL -XII- Water Supply, Housing and Urban Development.||1,420.00||1,662.00|
|XIII. Information and Publicity|
|Information and Publicity||15.00||21.00|
|Total - XIII - Information and Publicity||15.00||21.00|
|XIV. Welfare of Schedule Castes, Scheduled Tribes and Backward Classes|
|Welfare of Schedule Castes, Scheduled Tribes and Backward Classes.||1.00||1.50|
|Total - XIV - Welfare of Scheduled Castes, Scheduled Tribes and other Backward classes||1.00||1.50|
|XV. Labour and Labour Welfare :-|
|(a) Labour Welfare||3.30||3.50|
|(b) Craftsmen Training||8.00||13.10|
|(c) Employment Services||5.70||6.00|
|Total -XV-Labour and Labour Welfare||17.00||22.60|
|XVI. Social Welfare and Nutrition|
|Social Security and Welfare Nutrition||36.00||45.00|
|(a) Special Nutrition Programme by Social Welfare Department||64.30||80.30|
|(b) Special Nutrition Programme by Community Development Department.||6.50||6.50|
|(c) Midday Meal Programme by Education Department||5.20||5.20|
|Total -XVI- Social Welfare and Nutrition||122.00||137.00|
|XVII. Other Social Services-|
|Aid to Municipalities||12.00||22.00|
|Total -XVII - Other Social Services||12.00||22.00|
|Total - B- SOCIAL SERVICES||2,817.00||3,428.42|
|C. GENERAL SERVICES :-|
|XVIII General Services :-|
|Stationery and Printing||50.00||55.00|
|Aid to District Councils||60.00||65.00|
|Patrolling of National Highways||....||....|
|Upgradation of Standard of Administration||476.00||210.34|
|Total XVII - General Service||886.00||630.34|
|TOTAL - C- GENERAL SERVICES||886.00||630.34|
The financial position for the year 1988 - 89 with those of the previous years
(Rs. in Lakhs)
|Capital Receipt under the Contingency Fund||1,123.46||946.62||946.62||600,00.93||78,600.00|
|Capital Receipt under the Public Account||81,740.37||112,325.21||89,025.96||114,291.22||116,436.46|
|Capital Expenditure under the Consolidate Fund||5,695.07||7,379.38||10,992.37||11,181.87||13,260.53|
|Capital Expenditure under the Contingency Fund||673.46||945.96||600.00||930.78||600.00|
|Capital Expenditure under the Public Account||83,042.87||113,966.62||89,948.95||111,279.95||116,664.46|
|NET RESULT :-|
|(a) In Revenue Account||(+)4,800.45||(+)5,823.78||(+)6,748.34||(+)5,698.92||(+)6,850.19|
|(b) Outside Revenue Account||(-)4,576.88||(-)6,781.76||(-)7,421.60||(-)3,719.79||(-)7,964.59|
|(c) All Accounts excluding the opening and closing Balance||(+)229.57||(-)957.98||(-)637.26||(+)1,979.13||(-)1,114.40|
Note :- (+) Indicates surplus and (-) indicates deficit.
DPS (Press Wing (Fin) 37/87 -620-24-03-87.