Government of Meghalaya

Budget Speech

2003 - 2004

Of

Dr. Donkupar Roy

Finance Minister, Meghalaya

28th March, 2003

 
Mr. Speaker, Sir,

I rise to present the first budget of MDA (Meghalaya Democratic Alliance) Government, which took charge to provide good governance in the State. I congratulate all the elected members in the house who have been entrusted and and reposed with this august task to bring in a positive change in the State.
 

  The Change, I am hinting at, is not only of a political kind, but is to position the undercurrent of socio-economics and development thinking. Also, the Planning process requires fresh orientation and understanding, with pragmatic approach to problem faced in the State.
 
  The planning Commission of India is yet to finalise the resources and size of the Annual Plan 2003-2004. Thus, the Plan Budget provision for the year 2003-2004 for the State are purely tentative.
 
 

The Tenth Plan as approved by the National Development Council (NDC) in December 2002 has set an ambitious growth target of 8 percent of national economy which remains our overall national resolve against the backdrop of demonstrated growth potential of about 6.5 percent. The Tenth Five Year Plan Document also identifies specific and monitoring targets, and key indicators of human development, some of which are as follows:
 

 
  • Reduction of poverty ratio by 5 percentage points by 2007 and by 15 percentage points by 2012 ;
  • To provide gainful and high-quality employment, in addition to the labour force over the Tenth Plan period ;
  • All children in schools by 2003; all children to complete years of schooling by 2007;

  • Reduction in gender gaps in literacy and wage by at least 50 percent by 2007;

  • Reduction in the decadal rate of population growth between 2001 and 2011 to 16.2 percent ;

  • Increase in Literacy rates to 75 percent within the Plan period;

  • Reduction of Infant Mortality Rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012;
  • All villages to have sustained access to drinking water within the Plan period;
  • Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012.
  • The Prime Minister's vision to double the per capita income within the next ten years and
  • A target of creating 100 million employment opportunities over the next years.
 

Tenth Plan seeks to give shape to above vision keeping in mind the constraints and potentialities, However, it emphasise, "since there are significant lags in the process of creation of capacities and their being brought into production, the Tenth Plan will have to consciously take into account the pipeline investments that would be necessary to accelerate the growth during the Eleventh Plan period. This fact increases the investment requirement and also lends a degree of urgency in taking the appropriate policy steps".  
 

 

It is therefore necessary to make a realistic assessment and estimate of our growth potential by determining ways and means to achieve the growth and other monitorable targets set during the Tenth and Eleventh plan.
 

Some key issues in this connection are:
 
  1. Provision for maintenance of existing capacities which suffer both on account of lower devolution by Central Finance Commission and a limited availability of plan resources;

  2. The presence of large number of schemes in a limited plan budget leading to a thin spread of resources and calling for actions to weed out low priority and  irrelevant schemes, and also to transfer a few existing responsibilities to the private sector; and

  3. unproductive costs on administration and establishment.
  We, therefore propose to address these issues in a manner bereft of populism.
  Sir, the tenth plan document acknowledges and underlines the following generic concerns :
 
  1. Misrepresentation of actually non-plan schemes as continuing schemes and thereby causing aberration in assessments of revenue gap under non-plan.
  2. The above resulting in tight budget for the continuing (actually non plan) schemes and bringing new genuinely required schemes under direct conflict in the matters resource allocations.

  3. Consequential thin spread of resources, non-starter new schemes suffering owing to limited resources and leading to escalations and revisions, besides the delay.

  4. Unrealistic Plan size and attaching a sense of achievement in higher unrealistic plan by either depleting the cash base or by higher borrowings to actualise it, making the finances vulnerable and unsustainable on almost all indicators.

      The Tenth Plan document has also indicated 3 predominant fiscal concerns:
  1. Falling share of plan expenditure to Gross State Domestic Product (GSDP)
  2. Rising level of net debt receipts to plan expenditure, reflecting growing debt burden
  3. Rising share of revenue expenditure in net debt receipts.

With respect to the above features, the  planning commission has grouped the States as follows: high-income States, middle-income States, low-income States, and special category States in which we fall. However, it is heartening to mention that during the ninth Plan, the share of plan expenditure in GSPD recorded highest for special category States. This underscores various Central Government and State Government investments on economic growth.

This underlines the necessity of our making concerted efforts for our absorptive capacity. We will therefore make all out efforts to formulate larger number of proposals for Central funding including funding under Non Lapsable Pool of Central Resources (NLPCR) in order to improve our share of such resources.

The National Economic Scenario indicates that the Gross Domestic Product (GDP)  at factor cost at constant (1993-94) prices grew at 5.6 to 2001-2002. With trends of initial sluggishness, the economic picked strongly against expectations. The overall Gross Domestic Product (GDP) growth in the current year as per advanced estimates is likely to be only 4.4 percent. Between 2001-02 and 2002-03, the agriculture and allied GDP did not fare well and declined by 3.1 percent, due to failed monsoon. This clouded the  performances of Industry and Services, which grew from 3.3 percent to 6.1 percent and from 6.8 percent to 7.1 percent respectively. This late recovery accompanied by the stability factor of low inflation, orderly currency market conditions and comfortable reserves is considered significant given various downside risks prevailing in the national and international economy. The outlook of recovery in global economy is subdued due to unsettle geopolitical factors, among others. The transition to a market based  pricing regime for petroleum products was also devoid of disruption with fuel group inflation notching by 5 percent during the year. Capital Market continued to be subdued and cautious. It is worrisome that the Public finances both at the centre and the States deteriorated further during 2001-2002. Primary deficit of the Central Government reached a level of 1.4 percent of GDP in 2001-2002.The lack of fiscal consolidation at the level of State is also revealed by a similar and greater deterioration. The consolidated fiscal deficit of the Centre and the States was 10 percent of GDP for 2001-2002.

State Economy:

The Advance estimates of the State Domestic Product (SDP) for the year 2001-2002 has been revised as Quick Estimate and also the advanced estimates of 2002-2003 has been released. The Gross State Domestic  Product (GSDP) for 2002-03 is estimated at Rs.2,642 crores against Rs.2,513 crores for 2001-02 registering a growth of 5.14 % as against 4.4 % of the all India at constant prices (1993-94). At current prices, the GSDP is estimated at Rs.4,342 crores while that of 2001-02 at Rs.3,978 crores showing a percent variance over the previous year at 9.16 percent against All India Advance estimates of 6.8%. The per capita income of GSDP at factor cost in real terms is estimated at Rs.10,991 for the year 2002-03 against Rs.10,731 recorded during 2001-02 showing growth in per capita income at only 2.42 %. However, at current prices per capita income (Advance Estimates) is arrived at Rs18,065 in 2002-03 while during 2001-02 it was recorded at Rs.16,987 showing an annual rise of 6.35 %. In the State the tertiary sector continues to dominate the State economy contributing 54.91% and 55.28% in 2001-02 and 2002-03 respectively at current prices, whereas the same at constant prices reflect 52.82% and 53.39% contribution for the corresponding years. The secondary sector is consistently performing by contributing 14.31% during 2001-03 period, whereas it was 14.44% at current prices. The contribution of the Primary sector is slightly decreasing from 30.78% during 2001-02 to 30.28% in 2002-03. At constant prices, the secondary sector is contributing 14.78% in 2001-02 and 14.91% in 2001-02 and 30.71% in 2002-03. The Net State Domestic Product (NSDP) at constant prices for the year 2002-03 is estimated at Rs.2,338 crores against Rs.2,228 crores during 2001-02 registering a growth of about 5%. The corresponding variance at current prices over previous year is 8.84%.

Sir, our growth rates in State Domestic product during 8th plan have been 3.8 percent, and in the 9th plan have been 6.2 percent per annum and for the 10th plan it has been targeted at 6.3 percent per annum. Sector wise growth target in terms of annual average percent for the 10th plan have been set at 4% for Agriculture, 6.87% for the Industry and 7.05 for the Services. The poverty projection for 2006-07 for our State is 31.14%, which has a projection of 37.89% poor in rural and 4.48% for urban areas. However, I must mention that this is a gross figure for the entire North East, and requires differentiation by survey and study.

The 10th plan document has indicated a sustainable fiscal deficit for our State as 3.25 of GSDP.

Sir, based on the above I feel our economy needs to grow at rate higher than 11% and considerable public and private investment must flow into the economy. We must endeavour to achieve targets set in the State.

 

Fiscal highlights :

  • Meghalaya with its limited resource base depend largely on the Central devolution for its Non plan and Plan requirement. Prior to 1989-90, the Planning Commission used to provide Central Assistance to bridge the Non plan Revenue Gap of the State. But with effect from 1990-91, the above system has changed and the State is left to fend and the negative BCR (Balance from Current Revenue i.e. Revenue Receipts (Non plan) minus Non plan Revenue Expenditure) taken into account while fixing the Annual Plan size of the State. Thus if there is negative BCR to that extent fund for planned activity is less.

  • The unfavourable recommendation of the Succeeding Finance Commission, which over assessed the State's Receipts and under assessed its Expenditure has adversely affected the finances of the State. 

  • The burden on the State's exchequer on account of 3rd Pay Revision has also erode the meagre resource base of the State. There has been 13-15% increase in the salaries / wages during 2001-02, due to regularization of large Scale Adhoc / Casual appointments under PWD and PHE in compliance to Court's order.

  • The State's share of Central Taxes recommended by the Tenth Finance Commission was Rs.1534.58 Crore but the amount actual released by the Ministry of Finance was Rs.1306.45 Crore only.

  • The Non plan Revenue Gap projected to the Eleventh Finance Commission was Rs.6011.60 Crore whereas the amount awarded by the Eleventh Finance Commission is Rs.1572.38 Crore only. It is yet to be seen how much we actually receive.

  • The collection of State's Own Receipts under Tax and Non Tax Revenue constitutes only about 18 % to 20 % of Total Revenue Receipts (Non plan and Plan). Major Revenue Receipts comes from the Centre in the form of grants and loans, which is 80%- 82%. The trend in tax collection is only marginal increase and the collection requires giving thrust.

  • The fiscal deficit of the State increased to Rs.249.00 crores in 200-2001 from Rs.23.00crores in 1996-97. This deficit was largely by public debt thus increasing the debt liability by 138% from Rs.585.00 in 1996-97 to Rs.1394.64 crores in 200-2001. The returns on high cost borrowings for investments made in companies and corporations are abysmally low to the extent of less than 0.005 to 0.5 % as against loans for investment at cost of 8%-13 % range.

  • The net effect on transaction in the consolidated fund, contingency fund and public account during 2001-02 was a decrease in cash balance from Rs.149.00 crores at the beginning of the year to Rs.43.00 crores at the end of the year.

  • Revenue expenditure increased from 75.54% in 200-2001 to 85.08% in 2001-2002 and the State was revenue deficit to the tune of Rs.34.00 crores.

  • The fiscal deficit during the year increased manifold (75%) over the last 5 years indicating fiscal deterioration of the State.

  • The State Government had no surpluses from current revenue in the last five years and the State had to depend on borrowings to achieve the approved higher plan size. Such borrowings were invested in projects or programmes or Corporations or Companies, which did not give adequate return, making the financial condition unsustainable.

  • During the five years period the liabilities of the State Government had grown by 117%.

Sir, from the reports it is clear that the State Govt. had no surplus from  current revenues in the last five years and the negative balance on BCR (Balance from Current Revenue) has increased from year to year and the gap continue to be met by borrowings.

This, if revenue expenditure is not controlled, capital formation will further suffer and borrowings will increased leading to increased debt burden. The ratio of Debt to GSDP has increased over the years indicating reduction in the ability of the Govt. to meet debt obligations. This has adverse implications for sustainability.

Realising the generic concerns in the Country, the Eleventh Finance commission suggested for creation of State Fiscal Reforms Facility scheme for each State and also suggested an incentive fund, which the Govt. of India has implemented. The Mid-term fiscal reform is our committed and somewhat practiced path for some time in the past. The efforts need to be stressed more emphatically. The State has negotiated a set of Mid term Fiscal reform with the Central Government and has obtained release of an amount of Rs.103 crores as an incentive. Achieving the parameters negotiated will lead to our obtaining a further amount of Rs.153 crore as incentive over the next 3 years.

These reforms require us to achieve the under mentioned parameters within 2004-2005.

  • Gross fiscal deficit of the States as an aggregate to fall below 3.5% of the GSDP.

  • Zero revenue deficit and progressive revenue surplus.

  • Interest payment as percentage of revenue receipt of the State sector as a whole not to exceed 20%, and annual increase of interest payments in absolute term to be limited to 10% per year.

  • Increase in wages and salary should not exceed 5% or the consumer price index whichever is higher.

  • Explicit and implicit subsidies to be rationalized, better targeted and scaled down gradually.

These benchmarks reflect our commitment for which some Key strategies, are :

  •  Monitoring and enhancing the revenue productivity of taxes by bringing about systematic change in the base, rate structure administration and vigorous enforcement mechanism. Simplification of sales tax system by introduction of Value Added Tax ( VAT ) as part of national fiscal reforms, to rationalise consumption tax system and to improve revenue efficiency.

  • Enhancing the productivity and efficiency of non-tax revenues, fees enhancement and collection, rationalisation and user charges towards community participation in ownership and maintenance of assets for assuring reliable and quality services.

  • Reforms of Public Sector enterprises by disinvestment winding up or restructure to reduce budgetary support.

  • Focus on Power sector reforms by setting up State Tariff Regulatory Commission, taking feasible actions towards unbundling, setting up a network of integrated profits centres, recovery of dues, reducing transmission losses, to reduce the difference between the average cost of power per Kwh (accrual basis) and average revenue per Kwh in the medium term. Sir, the State government under the power sector reforms have securities some dues to the State Electricity Board. This implies more productive, autonomous, accountable and efficient functioning of the Board.

  • Improvement on cost recoveries and reducing implicit subsidies in respect of urban services in the medium term, particularly, those not directed to poor.

  • Compressing unproductive government expenditure and ensuring better resource utilisation, reploughing and redeploying existing resources including human resources in government.

  •  Strengthening infrastructure to ensure productive investments, better inventory control, improved Human Resource Development (HRD) and cost effectiveness of projects.

  • Encouraging policies for public participation and private investment.

  • Putting effective management and restructuring plan to reduce the composition of high cost borrowing and to limit contingent liabilities. We will continue to avail of the debt-swap scheme of the Central Government to prepay the older high cost debt and substituting them with current low-coupon bearing small savings and open market loans. This will marginally improve our contingent liabilities.

  • Improving governance, putting in place a sound public expenditure control and management programme by effective information systems adherence to fiscal responsibility.

  • Adequate investment flow to sectors like primary and secondary education including efforts on skill impartation for livelihoods, basic health care, sectors encompassing income and employment generation towards rural development, Natural resources, bio-resources and environment conservation towards sustainable development, expenditure on physical infrastructure in a project-mode will be protected and pulverised.

Sir, the broad plans and policies of the State have enunciation in the Governor's address on 19th March 2003. The supplements tom the Budget Documents enlist the tentative programmes and allocations for the Annual Plan2004-04. I, now propose to highlight and intersectoral development strategy.

Implementation of Schemes: We propose to harmonise the implementation of development programmes in a time bound and effective manner. The schemes of High Security Jail, Assembly construction, Convention Hall, High Court building for which Rs.18 crores has been obtained during the current year will be given due priority.

Good Governance by Enforcement of Law and Maintenance of Order :Sir, peace and harmony are essential pre-requisites for growth and development. The State would like to invest in sustainable programmes that can bring lasting peace in the State.

In the matters of development arena besides availing facilities of training available, a capacity building programme with the help of Australia Aid (AUSAID) is likely to achieve a better orientation of public servants who are the cutting building of State Police will continue, coupled with efforts on mobilisation, strengthening and modernisation. The Central Government has enhanced the fund earmarked under the normal scheme for modernisation of the State Police Force. Programmes towards technological and human capacity building would be encouraged. We will continue to recognise outstanding devotion in public service, while continuing our best efforts to protect the lives and property of people in the State. Administration of Justice will receive our highest consideration of support. We will continue to support durable and sustainable rehabilitation of misguided youth to achieve bringing them into the mainstream.

Natural Resource Management :

Every effort will be made for integrated and sustainable development of our Natural Resources :

  • We will endeavour to complete documentation and inventorisation of our most valued resource i.e. land including minerals and forest. Priority will be given for formulation of Land Use Plans by revitalising the State Land Use Board.

  • Concerted efforts will be made for improved Planning utilisation of our water resources.

  • We will reorient our programmes and policies towards a pro-poor directions which will receive our highest consideration and priority. Effort will be made to make appropriate investments in each sectors to ensure good governance and efficient social security net.

  • Agriculture and Horticulture  play a predominant role in the State's economy. The uniqueness of natural and    organic farming from a low productivity brand to high income and return generating organic farm products will be given impetus by organising and facilitating certification, patenting and registration. A farmer - counseling centre is proposed to be initiated. The proposed outlay for the sector during the Tenth Plan is Rs.7974lakh. During the last decade, 1990-2001, the food grain trend had shown marginal improvement as follow :-  ( i )  Area = -0.80 %i (ii) Production = +4.08% and ( iii ) Productivity = +3.99 %. During the Tenth Plan the target of food grain production is 244.79 thousand MT. In Horticulture sector, vegetable crops like Cole Crop, Carrot, Tomato and Radish have exhibited all round improvement in respect of area, production and productivity. Among fruit-crops, Citrus, Pineapple, Banana, temperate fruits, have been given special thrust as these crops have been found to be economically viable. Areca nut and tea have brighter prospects. However, the international and national price regime will determine growth yards have been established at Mawiong in East Khasi Hills and Garobadha in West Garo Hills with cold storage components of 1000 MT each. An array of 27 Centrally Sponsored Schemes are being implemented with an investment drip irrigation, sprinkler-irrigation and green house cultivation. The plan outlay during 2003-2004 is tentatively proposed at Rs.1600.00 Lakh.

  • The Government through Soil and Water Conservation Department could improve and develop agricultural lands with assured irrigation from 1500 hectares during 1972-73 to 4765.08 hectares during the current year and a corresponding increase in afforested degraded lands from 1053.96 hectares to 30363.11 hectares, over the same period. Similarly, the area under erosion-control and cash crop plantation rose from 102.3 hectares and 363 hectares to 10320.60 hectares and 10805.77 hectares, respectively. The department will have to be galvanised towards implementation of watershed based Integrated Wasteland Development Programme (IWDP), Watershed project in shifting cultivation areas, and other central sector and centrally sponsored programmes in close collaboration with Forest, Agriculture and C&RD department to enhance the absorptive capacity, capabilities and off take of funds from the centre to the State. It is proposed to involve Co=operatives, traditional institutions and Private entrepreneurs to provide space for employment generation through commercial crop plantation schemes. Subsidy based schemes will have to be rationalised for gradual reduction and better targeting. 

  • In the Forestry & Wildlife the Working Plans for the operation of the State Forests have been approved by the Central  Government in accordance with the directive of the Supreme Court. The operation of these Plans is also subjects to the directions of the Apex Court. The Autonomous District Councils are being assisted in the preparation of Working Plans for forest under their control. Likewise, steps have been taken to support the preparation of Working Plans of private plantations. Government propose to set up a Bio-diversity Research Centre and Park are to be funded by the Central Government. Efforts will continue to protect and preserve the floral and fauna of the State and to restore and enrich the wealth of the degraded forests of the State.

The proposed Bio-Resources Centre presently under the Planning Department will be made functional.

  • Animal Husbandry And Dairy : Increased Plan investment to a level of Rs.700.00 lakh during the current year is indicative of the importance attached to this sector. Egg production increased from 81.4 million numbers per annum to 90.2 millions, meat-production from 28,804 tonnes to 33,767 tonnes per annum and milk production from 59,100 tonnes to 66,000tonnes per annum during the ninth plan period. Suitable infrastructural-linkages and technical assistance will be provided to entrepreneurs to help take up commercially viable dairy, poultry, and livestock farming. The Plan outlay for 2003-2004 has been proposed at Rs.850.00 lakh under Animal Husbandry and Rs.140.00 lakh under Dairy Development.

  • Fisheries. Every effort to promote pisciculture in the private sector and to make better utilisation of available natural water bodies will be made. A sectoral outlay of Rs.125.00 lakh has been proposed during  2003-2004, with a target to produce 5.5 MT of fish and 2.0 million fish-seed.

  • Sericulture & Weaving sector will focus on increased production of silk-cocoons and handlooms fabrics. Besides implementation of the North Eastern Council (NEC) funded project for the Integrated Development of Muga, the department will continue to implement the Catalytically Development Programme of the Central Silk Board and the UNDP- assisted sub-programme for development of Eric and Muga. Besides, the Deen Dayal Hathkargha Protshahan plantation coverage of 890 hectares under Mulberry. Eric and Muga is proposed to be taken up during 2003-2004. The production of Eric and Mulberry silk cocoon is expected to increase from 3.63 lakh kgs during 2002-2003. The proposed annual plan outlay under this sector is Rs.300.00 lakh during 2003-04.

  • Co-operatives are instrument for transformation of socio-economic development at the grass root level. To strengthen the Cooperation movement in the State, Government would take necessary steps to revitalise the Primary Agricultural Cooperatives. Necessary amendments to the Cooperative Societies Act and Rules is being brought out. The sectoral Plan outlay of Rs.375.00 lakh has been proposed during the year 2003-2004. Revitalisation of Cooperatives through effective cooperative education and training will be pursued. Restructuring, and strengthening of cooperatives through Integrated Cooperative Development Scheme (ICDS) will continue to facilitate democratic functioning of the cooperative societies in a professional manner.

  • Rural Development would continue its focused attention to poverty alleviation, employment generation, and creation of  rural infrastructure with backward and forward linkages. Towards this decision-making to facilitate implementation would be improved to achieve a better utilisation of central fund.

Efforts will be made towards :-

  1. Creation of durable community assets through utilisation of a sum of Rs.461.85 Lakh under the sponsored SGRY.

  2. Formation of 250 self-help Group excluding individuals under the Centrally Sponsored Swarnjayanthi Gram Swarojgar Yogana (SGSY) Scheme.

  3. Efforts to bridge critical gaps in rural infrastructure in selected sectors will continue under the SGRY-I Scheme.

  4. Under Indira Awaas Yojana, 1214 new shelters have been completed and 642 shelters upgraded.

  5. 26,531 old and destitute citizens, and 58 other beneficiaries are expected to be benefited under the National Social Assistance Programme.

Besides, in the matters of Rural Employment during 2002-2003, 14.89 lakhs man-days of rural employment had been generated till February 2003 under the different Centrally Sponsored Employment Generation Programmes. It is expected that a total of 20.00 lakh man-days of employment will be generated during 2003-2004.

The success of a delivery system is often measured by the efficacy of development administration at the grass root level. The Community and Rural Development Blocks, being our grass root level institution have been expanded and strengthened. However, their functioning will be closely monitored. An amount of Rs.600.00 lakh has been allocated for Community Development programmes next year. During the current year 2002-03, allocation under the programme Special Rural Works Programme [SRWP] popularly known as MLA scheme, has been increased from Rs.25.00 lakh to Rs.30.00 lakh per rural Assembly Constituency and from Rs.12.50 lakh  to Rs.15.00 lakh per semi-rural Assembly Constituency. This programme has generated sustainable community assets and will continue as a major programme under the Rural Development Sector during the next year.

In the Housing sector the Rural Housing Scheme and Prime Minister Gramodaya Yojana as per guidelines will be implemented.

         Border Areas Development Schemes are being implemented to improve the economic condition of the border inhabitants. The Government will continue to implement schemes relating to construction of link roads, community schemes to generate employment, construction of schools buildings, community halls, footpath, footbridges, market stalls etc. Scholarship scheme extended to the student residing in border areas will continue. Rs.770.00 lakh has been under this sector during 2003-2004. 

        Assistance to Autonomous District Councils : Autonomous District Councils are historical and constitutional having their autonomous character and responsibilities. With the creation of a full-fledged State, there has to be a symbolic relationship based on mutual trust, partnership and co-operation. Constitutionally a State is a bigger entity and assistance to district councils will have to be ensured. However, such assistance cannot be open ended. The established norms and procedures and accountability on such assistance must be there. The programmes for providing grants-in-aid  to the Council for construction of village roads, footpath, bridges, playgrounds, Council own office building and improvement of rural markets will continue. However, members are aware that  such works are undertaken by the C&RD/PWD/Border Area Development Department/MLA schemes and others. A mechanism needs to be evolved for formulation and clearances of the schemes by enunciation a district level committee, involving the MLAs, sectoral departments and including the District council to oversee that no duplication takes place and the investment are fruitfully utilised in a synergistic manner in the State. An amount of Rs.550.00 Lakh is projected for this sector during 2003-2004. However, this will depend on release from Government of India and policy decisions in this regard.

        Irrigation And Flood Control : The total identification irrigation potential is 1.18 lakh hectares, out of which only 24,460 hectares, which is about 11 % only, has been achieved. In order to fully tap irrigation potential, a separate Directorate of Irrigation was set up during 2001-02. The lone medium irrigation project in the State, Rongai valley irrigation at a cost of Rs.1630 lakhs is under review. Investigation in other areas having irrigation potential will be taken up.

        Power, electrification and non-conventional energy : The State has a total installed capacity of 185.20MW. As mention earlier, the Power sector reforms have already been put on a track. The State Government has also signed a Tripartite agreement for One Time Settlement of SEB dues. The objective of the Power sector reforms is to improve the sub-transmission and distribution system for better liability of power and reduction of transmission and distribution losses under the Accelerated Power Development Programme ( APDRP ). During 2003-2004, an amount of Rs.9 crores is proposed to be spent for implementation of the project. The total number of villages electrified is 2612, while the numbers of consumers are about 1,50,000. During 2002-2003, 583 villages were electrified under various schemes. In addition, 30985 under BLP (below poverty line) families have been provided single point connection under Kuntir Jyoti Programme till date, and 10000connections are expected to be released during this financial year. During 2003-2004, additional 500 villages are proposed to be electrified with an outlay of Rs.60.21 crores.

In order to meet the likely shortfall of power in the coming years, the Government has initiated a number of measures. A long-term measure is the implementation of the Myntdu-Leshka Hydel Project at a cost of Rs.363 crores, which will generate 84 MW by the end of the 10th Plan period. For the aforesaid purpose a loan of Rs.160 crores is likely to be sanctioned by REC. Grants from NEC to the tune of Rs.145.00 crores has been also been agreed. The outlay for 2003-2004 for this project is Rs.61.50 crores. Construction of transmission lines to tap power from the Eastern Grid are under consideration. Renovation and modernisation of power station at Uminm Umtru, Stage-II, is proposed during 2003-2004 with an outlay of Rs.18 crores, and for the Stage-III at Rs.5 crores.

        Industries and allied : The mechanism and incentives provided under industrial Policy, 1997, excise concessions extended by the Government of India and the establishment of the Export Promotion Industrial Park at Brynihat have created a favourable atmosphere for the development of Industries in the State. Regular Entrepreneur Development Programme (EDP) and Awareness Programmes are being conducted by the DIGs, MIDC, IIE, NEITCO and SISI to boost up entrepreneurship in the State. Industrial Units have been registered as on 31.3.2003 with employment generation of 23,054 persons. The Khadi &Village Industries Board continues to implement Rural Employment Generation Programmes, Block Employment Schemes and Consortium lending. The Plan allocation under this sector is proposed tentatively at Rs.1675.00 lakh during 2003-2004.

        Mining & Geology  department will continue to harmonise scientific mining the enormous potential of the State with concerns of geology and ecology. During 2002-2003, the Department has taken up as many as 11 geological investigation programmes on mineral exploration including investigations on ground water and geotechnical studies. The proposed Plan outlay during 2003-2--4 for this sector is Rs.158.00 lakh.

        Public works : Roads, Bridges and Buildings : Strengthening of road infrastructure occupies a central place in the overall development strategy of the State. However, PWD will have to prepare a master plan for roads in the State integrating and coalescing the District plans, and block plans. Schemes under the PMGSY for rural connectivity already stipulate such mechanism for formulation. Thus, the State master plan should clearly indicate the National highways, State highways, other State roads of A, B, &C category. Unless a sustainable plan is adopted by the State, this sector will remain afflicted by adhoc decisions, expediencies and very thin spread of resources leading to delay, leakages and cost escalations. The report of the committee on Projects as constituted will be given due accommodation in policy formulations. Further, no loans would be mobilised, unless there is cost recovery indicated in the project. This sector is allocated Rs.8250.00 lakh tentatively during 2003-2004.

Construction of additional wing of Main Secretariat (cv. Yojana building ) is likely to be completed during this year and Multi Complex Administrative building at the Old Transport Building Campus, Lower Lachumiere, is in progress. The Circuit House at Mawkyrwat and the new VIP Block at Tura Circuit House will be made functional.

         Transport 

Road Transport Service to interior places will be encouraged by granting Road Permits to Private Operators. Goods and passengers tax will be strictly enforced in close coordination with Taxation Department. The matter relating to operationalising of 50 seat Air craft at Umroi will be effected soon. The proposed Plan allocation under this sector during 2003-04 is Rs.175.00 lakhs.

         The State has enormous and diverse potential for Tourism. It is proposed to enunciate tourism policy, and preparation of a Master plan in the State. People's participation in giving boost to local economy will be encouraged. Linkages with heritage, art and cultural activity will be positioned. Idle infrastructure will be privatized or leased out. Boost to the sector will be in the mode of facilitation and promotion to private sector. Development of tourist spots in and around Cherrapunjee and Umiam lake area with the support of the Ministry of Tourism is under active consideration of the Department. The Department has proposed to develop Tura-Balpakram Tourist Circuit, setting up of Information Centre-cum-Paryavaran Bhavan at ward's lake during 2003-2004 with the support from the Ministry of Tourism. An outlay of Rs.275.00 lakh tentatively is proposed for this sector during 2003-2004.

          Efforts will continue to preserve, protect and conserve the rich Arts & Culture  potential of the State. Creation of infrastructure, research and documentation of indigenous forms of art will receive priority attention. The intensive Art and Culture Development Programme implemented through MLAs will continue to provide assistance to registered cultural organisations. Expectations and development of Museum buildings and improvement relationship has been established for exchange, support and co-operation with the Victoria Memorial Museum, Kolkata and other National institutions. Up-gradation of Public Libraries in the State is also being taken up under the Eleventh Finance Commission Award. An amount of rS.575.00 Lakh is proposed for this sector during 2003-2004.

           About 10.66 % of the Plan outlay is earmarked for Education sector. The State will enhance efforts to improve educational standards in the State. The Sarva Shiksha Abhiyan (SSA) State Mission Authority under the Chairmanship of the Chief Minister has been constituted for providing quality education to all children of the age group 6-14 years, children with disabilities and out of school children. 135 existing Primary Schools are being upgraded to Upper Primary level during 2003-2004 under SSA. To achieve the Universalisation of Elementary (UEE), a perspective plan has been formulated. The activities to be carried out as per Annual Work Plan on priority are : Setting up schools in viable areas, Setting up Alternative Schooling Facilities in unviable villages, Strengthening of existing facilities, Imparting quality training to untrained teachers, Ensuring appointments of pre-service trained teachers, Improving infrastructures, Providing teaching and learning equipments, and Providing incentive schemes. Mid Day meal scheme by providing cooked meals to school children under the scheme of Nutritional Support to Primary Education will continue to be implemented.

A 3- year Diploma in Computer Science and Engineering and 2 year post Diploma in Information Technology are being introduced in Shillong Polytecnic. Jowai and Tura Polytecnic are being set up during this year.

          Science and Technology :  Introduction of Appropriate Technologies and Science popularisation, through Science Exhibit Workshop and Environmental Fairs will be continued. A new project known as Shillong Science Centre is proposed to be set up during the next financial year. During 2003-2004 an outlay of Rs.100.00 lakh is proposed under this sector.

         Information technology will be centred on e-governance and catalysing growth and development of Information Technology enterprise, besides opening avenues for employment of unemployed youth. A taken provision of Rs.1.00 crore has been made for the first time during 2003-04.

       Sports and Youth Affairs : A vision to tap the creative potentials of the youth in chanellising their energies towards building o harmonious, peaceful, progressive and prosperous State would be initiated. We are committed to guide our youth towards achieving their potential. There are 85 numbers of ongoing schemes taken up by the State Sports Council in different Districts of the State. The scheme included construction of outdoors and indoors stadium, indoor hall, basket court, playfield. The Department has also taken up other activities such as training of personnel in sports & games, conducting of youth camp, financial support to NGO's engaged in youth welfare activities and awarding cash awards and scholarship to the Sports persons who excels themselves in Sports for capacity building of our youth.

       The Supply of Food and essential Commodities and their prices will be monitored. The Targeted Public Distribution System which cover 1,54,900 BPL families, 28,100 AAY  families and 2,66,078 APL families in the State will have an effective vigilance and monitoring system. Annapurna, another Central Sector scheme under which persons above 65 years not covered by old-age pension scheme are provided with 10 KG of rice, free of cost per month is being implemented in the State since January 2002 and scheme will be continued.  

       Health & Family Welfare will  continue to get utmost priority. In the past few years, Infrastructure has been created and improved. Diagnostic facilities are being positioned by suitably equipping hospitals in the State in a phased manner. Though a lot has been in recent past, I propose to give priority to the followings tasks :         

  • A capacity building programme towards better public service; enforcement of compulsory rural service

  • Improving health infrastructure and facilities and strengthening the district hospitals and upgrading laboratory facilities

  • Up gradation of CHC at district headquarters to the district hospitals; up gradation of the Civil hospital Shillong to the State General Hospital and strengthening Tura civil Hospital for rendering regional referral services for the Garo Hills region;  

  • Other efforts would concentrate on;

  • Making health institutions functional by arranging technical manpower, materials and synergysing construction with service connections of water and electricity

  • Providing approved and cost effective medicine to the patients, arrangements for hospital pack and mixtures for wider coverage within the limited resource, procuring and prescribing medicine under the generic names for economy and coverage.

  • Providing Accident trauma facility; and operationalising the National Programme for Rehabilitation of Persons with Disabilities (NPRPD). 

  • Strengthening and improving Ganesh Das Hospital and strengthening the Pasteur institute

  • Invigorating and mobililing peoples participation in monitoring, vigilance and management of health care facilities and services;

  • Tapping the NGOs and the civil society and transferring certain tasks and responsibilities for outsourcing and outreaching services;

  • Strengthening food and drug testing and enforcement;

  • Computerisation and use of IT will be encouraged, including use of telemedicine.

  • Focus on National Health programmes with emphasis and intensification of Malaria, Blindness, AIDS control and T.B. Programmes.

  • To set up indigenous system of medicine Ayurvedic/Homeopathy dispensaries/Hospitals in the State, preferably in the rural areas

  • To take effective steps for MIMHANS, drug de-addiction center jointly with the NGOs.     

A sectoral plan allocation of Rs.38.50 crores has been proposed for the year 2003-04.

        Water supply and Sanitation : The programme for providing safe drinking water to all human habitations will continue to be taken up under the PMGY. Under the Accelerated Rural Water Supply Programme, the set target of 2004 within which all segments of the population should be provided with safe drinking water will be endeavoured to be achieved. During 2003-2004 the target is to cover 400 Not-Cover (NC) and Partially Covered (PC) habitations. Water supply augmentation schemes are under implementation at Shillong, Baghmara, Williamnagar and Cherrapunjee. During 2002-2003, the Tura phase 111 Water Supply Scheme and renovation of Jowai Water Supply Scheme have been technically cleared by the Ministry of Urban Development. The Greater Shillong Water Supply Scheme (GSWSS) is progressing satisfactorily and the dam is likely to be completed shortly. The availability of water will be 11.30 million gallons per day after the completion of the scheme against the present availability of 7.5 million gallons per day. Ribhoi District has been selected to implement a pilot project with active participation of the community, and 10 % contribution by the villagers. The pilot scheme will be expanded to other Districts. An amount of Rs.3859.00 lakh is proposed for this sector during 2003-2004, against the revised outlay of Rs.3375.00 lakh during 2002-2003.

          Urban Development : Efforts to provide adequate infrastructure and basic civic amenities in all urban areas of the State will continue. Shillong city waste disposal system has been completed and is in operation. Efforts are on to have scientific solid waste disposal system for Tura and Jowai during 2003-2004. Second place of land acquisition for New Shillong Township has since been initiated and development of infrastructure is likely to be taken up shortly. Under Environmental Improvement of Urban Slum (EIUS) 2741 persons have been covered till January 2003 out of the target of 2950. Under (National Slum Development Programme (NSDP), 72,800 numbers of man-days is expected to be generated by the end of this financial year. The Plan outlay under this sector for the year 2003-2004 has been fixed at Rs.2385.00 lakh, tentatively. The special urban works programme implemented through the MLAs will continue.

           Labour & Employment : With the growth of services and industry the safety, welfare, Health and legal aspect of the workers/labourers, especially those working in factories and boilers will be given due support. The proposed outlay under this sector during 2003-2004 is Rs.190.00 lakh tentatively. Expansion of Industrial Training Institute ( ITI ) at Baghmara, opening new area of skill within outside the State will continue to be implemented.

            Social Welfare and Nutrition : Schemes for welfare of Women, physically handicapped, juvenile delinquents, aged and infirm would continue to be implemented. 45 physically-handicapped persons have been provided with prosthetic aids, 1072 physically handicapped students have been supported with scholarship and 56 numbers given vocational training in different trades during 2002-2003. Implementations of "The Persons With Disabilities (Equal Opportunities Protection of Right and Full Participations) Act 1995 will be given due support and directions. Barrier free access and other opportunity and rights of disabled will be acknowledge. It is proposed to give uniform grants to 110 physically handicapped students, book grant to 179, conveyance allowance to 90 and unemployment allowance to 22. Besides, it is proposed to continue to implement the following schemes during 2003-2004 : (i) The National Programme for Rehabilitation of Persons with Disabilities, (ii) Women Technology Park, (iii) National Plan of Action for Older Persons (NPAOP), (iv) National Plan of Action on Women's Policy and Empowerment, Supplementary Nutrition Programme for ICDS Scheme & Urban Areas (PMGY).

            Various administrative department have schematic components of Information, Education and Communication (IEC), information, Education and Communication (IEC), information and publicity, Awareness buildings etc. Besides the State also has Information  and Public Relations department. I propose to charter an effective co-ordination and information management between the departments. Information and Publicity will be reoriented towards awareness building of various development programmes of the Government through proper dissemination of information. The efficacy of plans and programmes will also be verified and tested by Programme Implementation department. Efforts will be made to vitalise Civil Defence and Home Guards.

Public Sector Undertakings (PSU) and Reforms : Sir, the performances of the Public Sector Undertakings (PSUs) and enterprises are by now well known. In this house on several occasions voices of serious concerns have been raised regarding their performances or non-performances. The present state of affairs cannot be allowed to continue. There are 10 working government companies and 3 working statutory corporations. I would like to share some of the highlights :

  • They, together employ about 6000persons

  • As on March 2001 their paid up capital is Rs.10,025 lakhs, accumulated profit/loss is Rs.(-) 32,859 lakhs, Capital employed is Rs.47,205 lakhs, Total return on capital employ is Rs.2327.91 lakhs, and percentage return on capital employed is 4.93. However, this scenario is on aggregate and macro level.

  • Most of the PSUs are in arrears of their finalised accounts, The MTDC is in arrears since 1987-88.

  • Of the Ten Companies, eight are loss incurring government companies, of this four company namely Meghalaya Watches Ltd, Meghalaya Bamboo Chips Ltd, Meghalaya  Electronic Development Corporation Ltd and Meghalaya Government Construction Corporation (MGCC) has losses far in excess of their paid up capital. These will be considered for winding up.

  • Of the three working statutory corporations two has earned a marginal profit and only one has declared dividend. But their performances needs further improvement.

  • In organisations like MTC, MMDC, MSHB, also calls for a radical and drastic effort towards winding up or restructuring.

 In view of the above, the following measures are proposed :

Total freeze on appointments in the PSUs, freeze and present position being ceiling on any additional financial burden on establishment, existing vacancies out of retirement/death to be abolished, the financial perks and packages given after the time of employment to be withdrawn, the management to be restructed to reduce drastically the expenditure on establishments, Till a final decision for disinvestments/, restructuring/ merger/closure/ case by case is taken, benchmarks on fiscal norms would be set and achieved. Sir, I may inform  that indications are, that if there is a decision for closure, perhaps one time assistance as additional Central assistance may be available to the State for VRS/ golden handshake so that the employees may not suffer.

The Programme Implementation Department will consider to constitute a Disinvestments committee or engage professional and accredited consultants. I also propose that, even though provision for assistance has been in the budget estimates for 2003-2004 to specific PSUs, no assistance would be given to any PSU and Apex Co-operatives without a consideration on their performances and approval of the cabinet. I also propose that the Savings due to non-release under the allocation would form a corpus for Disinvestments, VRS, One Time settlement and liabilities

Mobilising Institutional finance :

Sir, poor extension of credit is a major bottleneck for development and act as one of the biggest constrains in rural livelihoods matters, concerning poverty alleviation, employment oriented, production oriented, conservation oriented and income generating programmes. The credit deposit ratio in the State remains below 20 percent for more than a decade or so. Traditional land tenure is often blamed as constraining security for their credit. However, the traditional land tenure system is justifiable in courts. The State government has already enacted legislation namely the Meghalaya Miscellaneous Credit Operations Act way back in 1976 and necessary exemptions to financial institutions under the Meghalaya Land Transfer Act 1972 has been notified. The State government will consider the feasibility of notifying other district headquarters as centres for equitable mortgage for collaterals. Location based alternative credit arrangement and micro-credit model is a dire necessity. More than 50 % of the credit deployed by the banking agencies largely concentrated in Shillong. Further, advances have been as high as 85% to 90% in trade and transport sectors, which are also largely concentrated in Shillong. The changing trend has been that the advances are shifting from the 'priority sector' to 'personal loans and professional services' significantly.

Recovery of loans is essential for better recycling of funds. The recovery position of the banks in Meghalaya is one of the lowest in the country and thus the Rural credit has been the first victim of this poor recovery climate. All efforts would be made to stem the slide. Efforts will be made to make non-banking treasuries and sub treasuries as banking treasuries/ Sub treasuries.

TAX reform & VAT : Sir, in the coming financial year, under the initiative of the central government, States, has committed themselves to implement Value Added TAX (VAT). From the Union Finance Ministers Budget speech we all know that the State level value added tax will be historic and paradigm shift in domestic trade tax collection system. Such system, is operational in 120 countries and may assist in global transition of the trade systems. For this a legislation  has already been introduced in the house. This legislation is based on minimum set of common features, as agreed by the Empowered Committee of the State Finance and Taxation Ministers. There are apprehensions that the tax collection may fall. More so, as we have not geared ourselves to computerised our tax information system. To that direction we have agreed to implement VAT and also invest in such necessity of information base and computerisation in order that we do not suffer and lag behind. The Central government has agreed to compensate 100% of the revenue loss in the first  year, 75% in the second year and 50% of the losses in the third year. The loss will be computed on the basis of an agreed formula. It is expected that apart from avoiding cascading effect of taxes, it may lead to enhanced revenue as the coverage expands to value addition at all stages of production and distribution chain. Further, there will also be amendment to the Additional Excise Duty (AED) Act by the centre which will allow the States to levy sales tax on textiles, sugar and tobacco at a rate not exceeding 4%, these can also be integrated in the VAT system. The States will continue to get additional 1.5% of all sharable taxes and duties. There is also a likelihood that States will be empowered to collect and retain tax on services for which a constitutional amendment is contemplated in the union Finance Minister's Budget Speech which will enable both the centre and States to collect such service taxes.

Annual Plans

  • The plan size of 2002-2003 was fixed at Rs.545.00 crores and was to be funded besides other components by negotiated Loan of Rs.122.73 crores from Financial Institutions and Rs.70.00 crores from Market borrowings. So far only about Rs.33.00 crores Negotiated loans have achieved. To that extent the approved plan size of 2002-03 will stand reduced.

  • The proposed plan outlay of Rs.605.00 crores for 2003-04  has been formulated on purely tentative basis since the Resource discussion as well as the Annual Plan discussion with Planning Commission have not been incorporated in our Budget estimated 2003-04.

Economy measures :

  • Sir, in the past economy measures viz. Ban on Creation new posts except on Special circumstances; purchase of new vehicles except for replacement; acquisition of assets, restriction on avoidable tours etc. have been very successful expenditures and have since formed part of the fiscal policy of the State Govt. During 2002-2003, Finance Department also imposed a 10% economy cut on all Non-plan expenditure. Such measures will continue during 2003-04. Given the awesome task of fiscal corrections and reforms, additional Economy Measures will also be brought in force.

  • Towards such corrections various committee to examine and suggest tide the problem has been formed as below-

  1. Committee to go into the entire gamut of the tax and non-tax issues.

  2. Committee on Project Management to identify long pending projects, to oversee shelf of projects, inventory control etc.

  3. Committee for creation of post, redundant/ surplus posts/ possible redeployment etc.

  4. Committee to suggest rationalisation of State Sector subsidy schemes.        

These committees have already started functioning.

I.        ADDITIONAL RESOURCE MOBILISATION

Sir, in my submission earlier, my intention has been focused mainly to attain systematic corrections and expenditure compression. I am sure, this is possibly if we think and act objectively.

Now, I am enlisting measures by which the revenue receipts of the government are proposed to be augmented :

  • Annual licence fee of Bonded Warehouse to be increased from Rs.1.05 lakh to Rs.1.20 lakh.
  • Annual licence fee of retail-off IMFL shop to be increased from Rs.38,000 to Rs,42,000.00.
  • Annual licence fee of Bottling plants of IMFL to be enhanced from Rs.1.05 lakh to Rs.1.75 lakh.
  • Annual licence fee for Bar, Hotel, Clubs to be enhanced from Rs.26,00.00 to Rs.30,000.00.
  • Annual licence for canteen licences to be enhanced from Rs.10,000.00 to Rs.15,000.00.
  • Annual licence fee for outstill licences to be enhanced from Rs.1700.00 to Rs.2500.00.
  • Annual licence fee for centralised outstill to be enhanced from Rs.800.00 to Rs.1200.00.
  • Annual licence fee for Denatured spirit (wholesale) to be enhanced from Rs.200.00 to Rs.500.00.
  • Annual licence fee for Denatured spirit (retail) to be increased to Rs.1000.00 from the existing rate of Rs.500.00.
  • Annual licence fee for rectified spirit wholesale to be enhanced to Rs.800.00 from the existing of Rs.200.00.
  • Annual licence fee for rectified spirit (retail) to be increased from Rs.100.00 to Rs.400.00.
  • Annual licence fee of medicated wine to be enhanced from Rs.100.00 to Rs.500.00.
  • Introduction of 180ml bottle of IMFL in the State of Meghalaya.
  • Popular 'B' segment of IMFL to be merged with general brand at the existing rate of excise duty.
  • Import pass fee for IMFL from existing Rs.36.00 to Rs.50.00 per case and for beer from Rs.24.00 to Rs.30.00 per case.

  • Export pass fee for IMFL and beer to be enhanced to Rs.100.00 per case.

  • Label registration fee of

                       (a)    Whisky, Brandy and Rum from existing Rs.20,000.00 to Rs.30,000.00 and licence fee of the

                                item from existing rate of Rs.10,000.00 to Rs.15,000.00 per brand
                       (b)    Gin,Vodka, Wine and Beer from existing Rs.10,000.00 Rs..15,000.00 and renewal fee for these
                                items from existing rate of Rs.5,000.00 to Rs.7,500.00 per brand
  • Deregistration of IMFL and beer brands bottled in the North East Region but outside the State.

The above measures is likely to mobilise an additional Rs.2.50 crore.

Sir, I now come to matters of motor vehicles and other revenue :

  • Increase of driving licence fee for all categories by 15%
  • Increase in registration fee of all categories of motor vehicles by 15%
  • Passengers and goods taxes to be enhanced by 20%
  • I also propose that the rent of residential accommodation provided by the Government be increased by 15%.
  • Processing fee of 0.5% of the estimated cost of Project for the technical vetting and counter signature by the Government technical authority for projects and schemes implemented by other than the Government Departments.
  • I propose to enhance agency charges for works to be undertaken by PWD by 2%.
  • I propose to enhance by 10% the existing hiring charges for all machinery and equipment other than the Government
  • I propose collection of fee for the use of conferencing facility of Government by other than the Government Department and purpose.
  • I propose to enhance Water charges/ tax by 20%.
  • Increase in the hire charges of water tankers of PHE department from Rs.450.00 to Rs.675.00.
  • I propose to introduce a nominal fee of Rs.10.00 for artificial insemination of cattle.
  • I propose to introduce permitting unused/ under utilised infrastructure of Health Institutions and other Institutions including Public Sector Enterprises (PSEs) to be used by private/ NGO/ agencies against appropriate charges as per rules/ agreement framed.
  • Sir, I propose an additional development and maintenance fee of Rs.5.00 in Hospital and Rs.2.00 in the PHCs and CHCs per OPD patient and Rs.10.00 in hospital and Rs.5.00 in the CHCs/ PHCs per indoor patient. This amount will constitute a revolving fund of the health institutions and will be managed and utilised for that particular institution. Detailed modality will be enunciated by the Health and Family Welfare Department. However, such additional fee will not be charged for maternal and childcare.
  • Sir, I propose to enhance laboratory, Biochemistry and other analytical works under taken by the Health Department by 10%
  • I propose that the royalty on coal as revised by the Government of India will be implemented.
  • I propose to take up with the Government of India for collection of excise duty for conservation and development of minerals.
  • Outflow of raw materials from the State will be suitably regulated to encourage ad-value and job creation. Tax structure would be suitably framed for the purpose.

All these measures will have effect from 1st April 2003. The likely additional resource mobilisation to the tune of Rs.5.00 crore is expected.

II       BUDGET ACTUALS 2001-02.

The year 2001-02 opened with a surplus of Rs.45.7574 crores (Rupees forty five crores, seventy five lakhs, seventy four thousand ) While the total receipts during the year including receipts under Public Accounts amounting to Rs.11,515.9431 crores ( Rupees eleven thousand five hundred fifteen crores, ninety four lakhs, thirty one thousand ) the corresponding expenditure was Rs.11,571.9405 crores (Rupees eleven thousand five hundred seventy one crores, ninety four lakhs, five thousand), resulting in a closing deficit balance of Rs.10.24 crores ( Rupees ten crores, twenty four lakhs).

III.     REVISED ESTIMATES 2002-03.

The revised estimates for the current reflects an opening deficit balance of Rs.10.24 crores (Rupees ten crores, twenty four lakhs ) only. While the revised estimates receipts during the year including receipts under Public Accounts are likely to amount to Rs.14,259.8445 crores (Rupees fourteen thousand two hundred fifty nine crores, eighty four lakhs, forty five thousand) only, the corresponding expenditure is expected to amount to Rs.14,268,5574 crores ( Rupees fourteen thousand two hundred sixty eight crores, fifty five lakhs, seventy four thousand ), resulting in an anticipated deficit of Rs.18.9529 crores ( Rupees eighteen crores, ninety five lakhs, twenty nine thousand ).

III.      BUDGET ESTIMATES 2003-04

The estimates envisage an opening deficit balance of Rs.18.9529 crores (Rupees eighteen crores ninety five lakhs, twenty nine thousand ) and a total receipt including receipt under Public Accounts of Rs.14,428.0432 crores ( Rupees fourteen thousand four hundred twenty eight crores, four lakhs, thirty two thousand ) against a corresponding expenditure including expenditure under Public Accounts of Rs.14,434.3191 crores, (Rupees fourteen thousand four hundred thirty four crores, thirty one lakhs, ninety one thousand), resulting in an anticipated closing deficit of Rs.25.2288 crores ( Rupees twenty five crores, twenty two lakhs, eighty eight thousand ).

With these words, Sir, the budget estimates for 2003-04 are presented to this august House for consideration and approval. However, to enable the Government to carry on with its duties and defray expenditure from the first day of the next financial year, I propose that the House may grant a vote-on-account.

KHUBLEI, MITHELA, JAI-HIND.