Shillong, March 10: Meghalaya Chief Minister Conrad Sangma presents budget with a fiscal deficit of Rs 1570 crore, which is around 4.07 per cent of the GSDP.
The total receipts is at Rs 17,509 crore, of which the revenue receipts are estimated at Rs 15,232 crore and capital receipts at Rs 2,277 crore, Sangma said in his budget speech.
Also, he said “The budget of 2021-2022 provides for a detailed framework and the allocation of resources to achieve the vision. For the year 2020-21, the amount of tax transfers from the Union Govt has been reduced, owing to the economic impact of the pandemic. The budget estimates were Rs.5,999 crore, while the revised estimate was Rs. 4,207 crore, a shortfall of Rs. 1,792 crore,” says Sangma.
“The Fifteenth Finance Commission submitted its final report to the Govt of India covering the five-year award period 2022-26. The commission has recommended a total amount of Rs. 39,012 crore for the State. This includes the share of central taxes of Rs. 32,43 crore, the revenue gap grant of Rs. 3,137 crore, the grants to Autonomous District Council of Rs. 711 crore, health grants of Rs. 311 crore and disaster management grants of Ra. 403 crore.”
“Meghalaya’s share in the divisible pool of taxes has increased from 0.645 per cent in the Fourteenth Finance Commission to 0.766 per cent for the period 2021-26. This increase is a result of consistent efforts of the Govt over the last two years through engaging with the Finance Commission presenting the need for increased resources.”
“For 2021-22, the share of central taxes is estimated at Rs. 5,105 crore and the revenue gap grant is at Rs. 1,279 crore. The State has been taking steps to increase its own tax and non-tax revenue. For the current financial year, the own tax revenue of the State, including GST compensation, is expected to touch Rs. 2,213 crore, an 11 per cent increase over the financial year 2019-2020,” he says.
The CM in his budget speech said, “For 2021-22, Govt is budgeting an amount of Rs 100 crore for the Chief Minister’s Mobilisation Support Programme. I propose to subvent the full interest in KCC loans being paid by our farmers. For the next financial year, a corpus fund of Rs 10 crore will be set up to provide interest subvention to the standard or regular KCC borrowers of the State. We will spend another Rs 100 crore on the Piggery Mission in the next financial year.”
CM addresses social security and welfare. “I am happy that ASHA, Anganwadi workers, muster roll and casual employees are now being paid on the first week of every month. The ongoing Chief Minister’s Social Assistance Scheme for providing financial assistance to 1.1 lakh beneficiaries at the rate of Rs. 500 per month will continue to be implemented.” “I am pleased to announce that the minimum wages have been revised to Rs. 343, Rs. 389, Rs. 435, and Rs. 480 per day for Unskilled, Semi-skilled, Skilled and Highly Skilled categories of workers respectively from October 1, 2020.” “The construction of shelters for the urban homeless has been completed for Shillong, Jowai, Tura and Williamnagar,” he says.
Focusing on sustainability: he said “We are implementing several sustainability focussed programmes and projects. These include the ongoing IFAD funded Megha-LAMP project, the World Bank-funded CMP Project and the JICA funded Project for Community-Based Forest Management and Livelihood Improvement,” says Sangma. “For the implementation of all these externally aided projects focussing on environment and sustainability, I have budgeted Rs. 217 crore. Green funds such as Meghalaya Environment Protection and Restoration Fund amounting to Rs. 445 crore, CAMPA funds amounting Rs 163 crore and Meghalaya Minor Minerals Reclamation Fund amounting Rs 90 crore will be used for restoration and improvement of the environment comprehensively.” “I am allocating Rs. 10 crore for the construction of small multipurpose reservoirs (SMR). A project for eco-restoration of Sohra area is also being conceptualised and I have allocated Rs 25 crore for the same,” he says.
CM turns his attention to the District Councils. “The three ADCs are important institutions delivering important public services at the grass-root level. I am pleased to announce that because of the State Government’s persistent efforts, the 15th Finance Commission has allocated a grant of Rs 711 crore for the ADCs for 2021-26.”
“For Rural Poverty Alleviation, I am proposing a total allotment of Rs 1,138 crore for 2021-2022. Under this, the State Government is targeting the construction of about 47,000 houses at an estimated cost of Rs 611 crore under PMAY-G. For 2021-22, I am proposing a total allotment of Rs 120 crore for PMAY-G.”
Further said, “I am allocating Rs 27 crore for the completion of the Shillong International Centre for Performing Arts and Culture (SICPAC). Beginning in April 2021, we will increase the frequency of direct flights from Shillong to Delhi to twice a week. I am allocating Rs 5 crore for the provision of viability gap funding for this project. I am allocating Rs 20 crore towards organising all the events related to the 50th anniversary of our Statehood.”
On promoting entrepreneurship: he said, “My govt has identified entrepreneurship as one of the six core pillars of the developmental paradigm for the State. Under the umbrella of the PRIME Programme, the Chief Minister’s e-Championship 2.0 has already been launched. Three PRIME Hubs are already operational in Shillong, Tura and Songsak. We plan to construct 15 more PRIME Hubs in the next financial year and a total of 50 hubs by the end of 2022. I am budgeting Rs. 20 crore for this initiative,” says Sangma. “I expect the PRIME Fund to grow to Rs. 125 crore over the next two years. We are taking steps to ensure that in 2021-22 we will be able to cover 90 per cent of our villages under banking services. We have launched a comprehensive programme that involves reaching out to the unbanked villages via Banking Correspondents. 500 more Banking Correspondents shall be deployed in 2020-22. I am allocating Rs. 10 crore for the next financial year for improving banking coverage.”
Turning his attention to tourism, arts and culture, Sangma says, “For Tourism, I am allocating Rs 100 crore for 2021-22. Under this, allocation of Rs 30 crore for setting up of the Shillong Peak ropeway. Rs 5 crore for a new scheme for construction of homestays, restaurants, cafes, and other related infra in convergence with the PMEGP.” “Rs 5 crore to promote niche tourism products around arts, craft and music. Formulation of a systematic programme for engaging and supporting musicians and the music industry. Rs 5 crore for the beautification of our towns and Rs 114 crore for Tourism Infra creation through GoI’s flagship programmes of Swadesh Darshan and PRASAD.”
He also said, “I am proposing an overall development budget of Rs 2,461 crore for the Infrastructure Sector, including Rs 893 crore from the State’s resources. Under this, Rs 1,080 crore for road and bridges sector in 2021-2022. Rs 802 crore for the Water Supply Sector for 2021-22. Allocation of Rs 50 crore for implementation of Meghalaya Power Distribution Sector Improvement Project next year. The State Government will allocate Rs 20 crore in 2021-2022 each for the construction of a helipad at New Shillong Township and establishing the Institute of Driving and Traffic Research. Rs 50 crore will be allocated for the development of Tura and Jowai as smart towns. Rs 9 crore has been earmarked for completion of the Technology Park at Umsawli in New Shillong Township.
“The poultry Mission will be launched during the next Financial Year at a projected cost of Rs 121 crore. The State Government will spend Rs 50 crore on the Milk Mission in the next Financial Year as well,” he added.
Mentioning about the Excise revenue, he said, “The excise revenue for 2020-22 is expected to touch an all-time high of Rs. 350 crore, an increase of 27 per cent over last year. The lockdowns and the restrictions on movement have dramatically reduced the non-tax revenue collection. The non-tax revenue collection for this year is expected to be about Rs. 374 crore, a 29 per cent reduction from last year. The prospects for non-tax revenue collection for the year 2021-22 are, however, optimistic,” says the CM.
“The NGT committee had approved the auction of 2 lakh metric tonnes out of the 32 lakh metric tonnes of extracted coal. I am happy to announce that the e-auction process of extracted coal by Coal India Limited has begun.” “Improving the infra of all the 659 health centres taken up under World Bank funded ‘Meghalaya Health System Strengthening Project’ with an investment of Rs 370 crore over the next three years. I am earmarking an amount of Rs 55 crore for 2021-2022. I am allocating Rs 820 crore for the Health sector in 2021-2022, an increase of 13 per cent over 2020-21. I am confident that the revenue collection of the State would improve significantly in the next financial year,” says Sangma.
“The State Government is allocating Rs 150 crore to improve educational infrastructure to upgrade the school buildings. Rs 980 crore has been allocated for the Education Sector in 2021-2022, out of which Rs 453 crore is from State resources. I have estimated Rs. 2,579 crore and Rs. 694 crore for tax and non-tax revenue collection respectively,” the CM added.
