State faces worst-ever financial crisis • Annual revenue loss: Rs 600 cr
SHILLONG: The State is facing the worst ever financial crisis in the recent times with the revenue loss of over Rs 600 crore annually due to the ban on unscientific coal mining and also in the absence of visible austerity measures.
Sources said that though the State Government had prepared Meghalaya Mines and Mineral Policy 2012 which had provisions to check the side effects of rat hole mining, it was never implemented and the sudden interim ban on rat coal mining in April 2014 was a body blow to the Government and the coal miners.
As immediate measure to tide over the crisis,the State Government had imposed 20% cut on non plan budget since April last. “With this cut, we would be able to save at least Rs 300 crore a year”, Additional Chief Secretary in charge finance BK Dev Verma said.
Previously, the State Government had resorted to only 10% cut on non-plan budget.
Verma said that for additional resource mobilization, the departments like Taxation, Excise and Transport had been asked to increase the revenue collection.
The official said that with the financial crisis, there will not be much increase in the outlay in the upcoming state budget for 2015-16.
“Due to the loss of revenue due to the NGT ban on coal mining, we have also asked financial support from the Centre to make good for the losses”, Verma said.
Moreover, the State Government has already projected the need of Rs 50,000 crore for five years from 14th finance commission under different heads.
The State Government spends Rs 300 crore alone per month in terms of salary and pension of the Government employees which brings burden on the state exchequer.
Verma said that a Task Force had already been formed by the Government on the ways and means of generating additional resources and also to improve the efficiency of collection of revenue.
The official said that after the Task Force submitted many reports, the State Government have been implementing its suggestions over the years.
Financial crunch-at a glance
lApproximate loss due to NGT ban on coal mining: Rs 600 crore annually
lExpenditure for salary and pension: Rs 300 crore monthly
lRecurring expenditure for 4 new districts
lExpenditure for district courts after judiciary-executive separation
lLimitless foreign & domestic tours
lMeasures to tide over financial crunch
l20% cut on non- plan budget to continue
lSaving of Rs 300 crore per year by 20% cut
lRestriction on purchase of new vehicles
lAdditional Resource Mobilization by key departments
lFormation of Task Force to improve revenue collection
lFunds sought from Centre for revenue loss by NGT ban
lRs 50,000 crore projected to avail from 14th Finance Commission for 5 years