Nagaland presents tax-free deficit budget

Nagaland government on Thrusday presented a tax-free Rs 695 crore deficit budget for 2012-13 in the state assembly.

Presenting the budget, Chief Minister Neiphiu Rio estimated the transaction for next fiscal at a deficit of Rs 10.07 crore. But due to estimated negative opening balance of Rs 685.52 crore, 2012-13 would close with a overall deficit of Rs 695.59 crore, he said.

The chief minister did not propose any fresh tax in the budget but said that the government would continue to strive for better realization of reavenues at existing tax rates.

Rio put the target of internal resource mobilisation at Rs 494 crore for the next year against the budgeted target of Rs 442 crore during the current year.

The budget estimated the gross receipt at over Rs 7,859 crore against the gross expenditure of Rs 7,858 crore during 2012-13.

Although the annual plan size is yet to be finalized by the Planning Commission, the chief minister put the plan outlay at Rs 2,000 crore.

The budget estimated the debt servicing liability for next year at Rs 877 crore. The chief minister said that the state’s finance had been stable despite 'adverse awards' of the 13th Finance Commission.