Conrad presents tax-free deficit budget for 2019-20

SHILLONG: Chief Minister Conrad Sangma, who also holds the finance portfolio, on Tuesday presented a tax-free deficit budget of Rs 1,323 crore for 2019-20.
The chief minister did not announce any new project in view of the model code of conduct for the Lok Sabha polls.
The budget speech was reflection of the governor’s address to the House on the opening day of the ongoing session and the booklet published by the government on completion of one year in office recently.
Highlighting the budget estimates, the chief minister said the total receipts are Rs 16,199 crore of which revenue receipts are Rs 14,438 crore and capital receipts Rs 1,761 crore.
Excluding borrowings of Rs 1,736 crore, the total receipts are Rs 14,463 crore.
The budget pegs the total estimated expenditure at Rs 16,202 crore of which revenue expenditure is Rs 13,700 crore and capital expenditure Rs 2,502 crore.
Excluding repayment of loans of Rs 416 crore, the estimated total expenditure is Rs 15,786 crore.
This results in the deficit budget of Rs 1,323 crore, which is around 3.65 per cent of the GSDP (gross state domestic product).
The fiscal deficit was only Rs 1,150 crore when Sangma presented the budget for the year 2018-2019.
The interest payments for 2019-2020 are estimated to be at Rs 746 crore and pension payment is Rs 855 crore.
Later, speaking to reporters, Sangma said there is an increase in the budget allocation under Sports and Skill Development from Rs 66 crore in 2018-19 to Rs 201 crore in view of the upcoming National Games.
Under Community and Rural Development, the allocation is Rs 1,678 crore and the fund sanctioned in 2018-19 was Rs 1458 crore.
The allocation under National Rural Livelihood Mission is Rs 52 crore as compared to last year’s allotment of Rs 22 crore.
There is also an increase in the allocation for Non Conventional Energy with Rs 22 crore. The allocation last year was Rs 12 crore.
To a question, the chief minister said the government will try to tide over the deficit in the budget through borrowings.
On why no fresh tax has been proposed, the chief minister said taxes will be reviewed in due course of time.
He said the government is committed to increasing the revenue collection by reducing the leakage with the use of proper technology.
Earlier, while presenting the budget, Sangma listed priorities of the government.
He said a well-educated and healthy population is the bedrock on which all developmental efforts of the government and the future of the society depends.
“Accordingly, we are making concerted efforts to strengthen education related services. We notified the State Education Policy in September 2018. Providing quality education at all levels and enabling learners to develop their full potential and acquire the knowledge and skills for gainful employment are being prioritised,” the chief minister said.
He also highlighted setting up of 11 Ekalavya Model Residential Schools in the state.
Sangma proposed an allocation of Rs 1,077 crore for the education sector for 2019-20, marking a 17 per cent increase from 2018-19.
The chief minister narrated various initiatives of the government to improve the health scenario and proposed a development outlay of Rs 740 crore for 2019-20, an increase of 21 per cent over the previous year.
The chief minister said that the food processing sector offers immense potential to take the state to the next level of economic expansion.
He said for Agriculture and allied sectors of Horticulture, Animal Husbandry and Fisheries, the allocation for 2019-20 is Rs 47 crore.
On the road sector, the chief minister said under North East Special Infrastructure Development Scheme (NESIDS), two big projects were sanctioned with an investment of Rs 45 crore. These are the construction of Pynursla- Latangriwan Road towards Mawlynnong and upgradation of Mawsmai- Shella road up to the Kynrem falls. Under Rural Infrastructure Development Fund (RIDF) of NABARD, 38 rural road projects covering a length of more than 75 km were sanctioned at a cost of Rs 83 crore.
Under Central Road Fund, 44 schemes comprising 40 road works covering a length of 269 km and four bridge works were sanctioned at a cost of Rs 322 crore. Under state scheme, 72 km of new roads were constructed, 41 km of kutcha roads have been blacktopped and 305 running meters of RCC bridges have been constructed.
He proposed an allocation of Rs 590 crore for the roads and bridges sector for 2019-20.
He said under Smart Cities Mission, Shillong has been selected as one of the cities to be developed. The government has set up a Special Purpose Vehicle, the Shillong Smart City Ltd, to implement the scheme. Project Management Consultant is being engaged to prepare DPR for various projects under the mission.
“I am proposing an outlay of Rs 52 crore for this project, and a total outlay of Rs 188 crore for the urban sector,” he said.
The chief minister said the construction of the first phase of the Information Technology Park at Umsawli, New Shillong has started. The Tech Park will be a hub of several facilities including an in house Data Centre, IT and BPO service centres, Skill Development centre and Incubation centres.
“It aims to provide direct and indirect employment to about 1200 people after the completion of first phase. I am allocating Rs 65 crore for the IT sector, including an allocation of Rs 20 crore for the IT park, in 2019-20. This is a three -fold increase in allocation compared to 2018-19,” he said.
The chief minister said the government made significant progress to promote air connectivity in the state. The process of expansion of the Umroi airport has been completed. It is expected that 42 or 72-seater flights will operate soon connecting Shillong with Delhi and Kolkata.
“I am proposing an allocation of Rs 172 crore for the transport sector,” he said.
The chief minister also allocated Rs 7 crore to Meghalaya Institute of Entrepreneurship to encourage startups.
He said under the Entrepreneur of the Month programme, the government recognises and awards successful entrepreneurs of the state. The award comprises a cash prize of Rs 1 lakh and one full year of handholding and mentoring support through incubators that are being set up. Till date, three entrepreneurs have been awarded under this programme.
Stating that Meghalaya has already spent Rs 813 crore till February this year for providing an average of 64 person-days of employment for each registered wage-earning household in the state under MGNREGS, the chief minister proposed an outlay of Rs 1,045 crore for MGNREGS for 2019-20.
For the border area development, the outlay is Rs 47 crore and the allocation for development activities under Meghalaya Livelihoods and Access to markets Project (M-LAMP) is Rs 165 crore.
Another Rs 138 crore was earmarked for projects under Community Led Landscape management Project (CLLMP).
He said the implementation of the National Social Assistance Programme is a top priority of the government and hence the allocation was doubled to Rs 65 crore.
The chief minister also proposed an allocation of Rs 43 crore under the Chief Minister’s Social Assistance programme for 2019-20 and a sectoral allocation of Rs 558 crore for social welfare.
He said the state has witnessed a huge increase in the inflow of tourists, both domestic and foreign, recording an 80 per cent increase in tourist footfall in the last 10 years.
“We recently launched an online Tourism Information System to improve collection of data on tourist arrivals in the state. I am proposing a development outlay of Rs 110 crore for the sector,” he said.
Sangma asserted that his government is committed to improving governance.