Manipur CM announces state budget estimate of over Rs. 20,000 crore

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Written by Jimmy Leivon | Imphal | Published: February 14, 2020 10:50:27 pm

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Highlighting the likely fiscal position in the fiscal year 2020-21, the Chief Minister estimated the fiscal deficit at Rs. 1,363 against the deficit of Rs. 1,405 crore presented in the fiscal year 2019-20.

Manipur Chief Minister N. Biren Singh on Friday presented a budget estimate of Rs. 20,146 crore for the fiscal year of 2020-21. Singh, who is also the incharge of the Finance Ministry, tabled the budget estimate on the first day of the State Assembly session which began today.

Of the total estimate, the revenue receipts are estimated at Rs. 18.083 crore and capital receipts at Rs. 2,063 crore. Moreover, total estimates of the state’s tax and non-tax receipts estimated are Rs. 1325 crore and Rs. 257 crore while receipt from the state’s share in central taxes and duties is estimated at Rs. 5630.

Singh proposed a total expenditure of Rs. 21,224 crore out of the consolidated fund of the state.

Of the total expenditure, an amount of Rs 2,066 core is charged expenditure and the remaining amount of Rs. 19,159 crore is voted expenditure.

Singh further informed the House that revenue expenditure is estimated at Rs 16,445 crore. As such, the capital outlay is estimated at Rs 3,356 crore, which is an increase of Rs. 397 crore over revised estimates of 2019-20.

Highlighting the likely fiscal position in the fiscal year 2020-21, the Chief Minister estimated the fiscal deficit at Rs. 1,363 against the deficit of Rs. 1,405 crore presented in the fiscal year 2019-20.

The budgetary deficit for the current year (2019-20) is likely to increase to Rs. 1,720 crore as per the revised budget estimate.

The total expenditure for fiscal 2019-20 was estimated at Rs. 16,117 crore but it has been revised to Rs. 20,607 crore. Further the revenue receipt and capital receipts which were estimated at Rs. 13,157 crore and Rs. 1478 crore respectively hs now been revised to Rs. 13,897 and Rs. 4,605. The capital outlay increased significantly from the budget estimates of Rs 2,267 crore to Rs. 2,959 crore.

According to the Chief Minister, the increase in the deficit was due to the precarious financial situation of the state and that the state has gone into Ways and Means Advances a number of times which has been repaid automatically as soon as the balance is positive.

“At the time of presenting budget, our open market borrowing during the fiscal year 2019-20 was fixed at Rs. 800 crore. Based on actual figures from the finance accounts, we took up the matter with the finance ministry and have been able to get approval for raising the additional borrowing of Rs. 594. This has eased our payments to a great extent”, asserted the Chief Minister.

In order to improve revenue collection in the next financial years, the Chief Minister spelled out lists of the proposal in enhancing strict tax regime and mobilisation of additional resources like re-introduction of state lotteries which is expected to generate additional resources of Rs. 100 crore annually. Moreover, he said that the state cabinet has also approved the draft ‘Manipur Municipalities Property Tax, Rules, 2019 which also could bring in an income of Rs. 5 crore among others.

The state government has launched Public Finance Management System, e-Kuber and steps are also initiated to roll out online Government Receipts Accounting System, to enable the collection of Government fees, dues and other online, he continued.

“This budget (2020-21) is not a ‘Magic Pill’ that can miraculously solve all the problems, constraints faced by the state in general and particularly the economy. There are serious issues facing the state’s economy and this Government, through this budget, convey its seriousness in tackling these issues to bring about real and holistic development to the state”, said the Chief Minister.

The full budget session will have eleven sittings and conclude on February 28.

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