Chief Minister Conrad K Sangma today presented a fiscal deficit budget of Rs 1,570 crore for the 2021-22 financial year, which is around 4.07 percent of the state’s GDP.
This is an increase of Rs 32 crore in the deficit from the previous fiscal year.
Sangma, who holds the finance portfolio, informed that, excluding borrowings, the total receipts are estimated to be Rs 15,262 crore while expenditure, excluding the repayment of loans, is estimated at Rs 16,832 crore.
Presenting the budget, Sangma informed that the amount of tax transferred from the Union government to the state has been reduced dramatically owing to the economic impact of the Covid-19 pandemic.
“The budget estimates were Rs 5,999 crore, while the revised estimates were Rs 4,207 crore, a shortfall of Rs 1,792 crore,” the Chief Minister said.
Sangma said that the projections for the devolution of taxes for 2021-22 are, however, encouraging. He said that the Fifteenth Finance Commission submitted its final report to the government of India covering the five-year period – 2021-26. The commission recommended a total amount of Rs 39,012 crore for Meghalaya, which includes a share of central taxes of Rs 32,403 crore, the revenue gap grant of Rs 3,137 crore, grants to the autonomous district councils of Rs 711 crore, health grants of Rs 311 crore and disaster management grants of Rs 403 crore.
The CM also informed that Meghalaya’s share in the divisible pool of taxes has increased from 0.645 percent in the Fourteenth Finance Commission to 0.767 percent in the Fifteenth Finance Commission for the 2021-26 period.
“This increase is a result of consistent efforts of the government over the last two years by engaging with the Finance Commission and presenting the need for increased resources,” he said.
Sangma also said that for 2021-22, the share of central taxes is estimated at Rs 5,105 crore and the revenue gap grant is Rs 1,279 crore.
Sangma informed that, in addition to central transfers, the state has been taking steps to increase its own tax and non-tax revenue, including GST compensation, which is expected to touch Rs 2,213 crore, an 11 percent increase over 2019-20.
Meanwhile, excise revenues are also expected to see a healthy jump of 27 percent to touch an all-time high of Rs 350 crore this fiscal.
Other helpful moves that have increased tax revenue, he said, include handing over the collection of taxes under the Meghalaya Passenger and Goods Taxation Act to the Transport Department and introduction of the Meghalaya Settlement of Arrears Act 2020, licensing the manufacture and sale of homemade wines, allowing home delivery of liquor and introduction of e-Stamping.
The Chief Minister also said that the state government is optimistic that the auction of coal will net the state Rs 350 crore.
He said that for 2021-22, Rs 2,579 crore and Rs 694 crore for tax and non-tax revenue collection respectively has been estimated.
“The increase in tax devolution and the revenue enhancing measures would help in mobilising the much-needed resources to meet our development expenditure, pegged at Rs 3,300 crore,” Sangma said.
Out of the total budget, Rs 820 crore has been earmarked for the health sector, which is a 13 percent increase over 2020-21.
For the education sector, Sangma has earmarked Rs 980 crore, with new schools and colleges to be established and existing schools and college infrastructure upgraded or repaired.
For development of roads and bridges, Rs 1,080 crore has been allocated to the Public Works Department. Rs 802 crore has also been set aside for the Public Health Engineering Department. Overall, Sangma has allocated Rs 2,491 crore for the development of infrastructure in Meghalaya.
