Deficit budget in Manipur, but refreshingly different

IMPHAL, March 19: The finance minister, Chief Minister Radhabinod Koijam, presented the revised estimate for the year 2000-2001 as well as the budget estimates for the year 2001-2002 in the Manipur Assembly today. Although a deficit budget, this year's budget papers make a departure from the past by outlining a bold policy to meet and overcome some of the impending crisis, including the perennial fiscal crunch looming over the state. Standing out in bold letters, some of the salient features of the budget are the government's intention to downsize itself and to introduce numerous austerity measures, with a view to limit expenditure. It also seeks to hike as well as widen its tax base, and at the same time tone up its tax collection mechanism. This is with the obvious view to augment its dwindling receipts. Also prominent is its intent to consider seriously the proposal of the previous government to lift prohibition from the state and fatten the state's purse by an estimated Rs 30 crore annually. In the background of the entire scenario painted, the 26-point action plan signed between the previous government and the Union home minister, LK Advani is also clearly visible. Those in the Information Technology can also hope to have a lift from the government's new strategy of making this area of technology on economic flagship to the future. As for the hard accounts, Radhabinod Koijam's budget estimates of expenditures and receipts during 2000-2001, is expected to close with a deficit of Rs 382,67 crore. This, Radhabinod said, is against then actual closing deficit of Rs 289.07 crore at the end of 1999-2000 and constitutes 9.62 percent of the total budgetary outlay. "This deficit will remain unfilled and will be carried over to the succeeding year 2001-2002", Radhabinod said. The budget also estimates a staggering outstanding debt, as on 31-5-2000, excluding ways and means advance of Rs 744.24 crore. Out of this, Rs 385.32 crore are for payment of loans and advances to the Government of India and the balance of Rs 348.92 crore was for repayment to internal borrowings from LIC, GIC, NABARD, NCDC, REC, PFC etc. Repayment of principal and interest to the Government of India during 2001-2002 is estimated to be Rs 852.23 crore. "These constitute a severe drain on our resources," Radhabinod further stated. Koijam also stated that "the salaries liabilities of the 7th Plan period and that of the 8th Plan continues to be charged to Plan outlay with a view to contain non-plan revenue expenditure. "Continuance of this practice over the years has diluted plan allocations and eroded transparency to some extent. However, in the Budget Estimate of 2001-2002 it has been decided to transfer such liabilities from the Plan side of the non-Plan side so that the actual resources available for the development purposes under Plan is transparent. "Prima facie, it would appear that this exercise has caused a reduction in the Plan outlay which was Rs 449.32 crore in the Revised Estimates 2000-2001 to Rs 375.21 crore in the Budget Estimate 2001-2002.