Lyngdoh hints at presenting tough budget on March 27

SHILLONG, March 21: Meghalaya Finance Minister, AH Scott Lyngdoh has hinted that he would be presenting a tough budget on March 27 next with a view to bringing down the level of deficit in the state's finances. While justifying deficit financing as a normal practice for any government, he cautioned, "there is a limit to it." He was responding to grave concerns expressed by Opposition members in the State Assembly during question hour on Wednesday over the huge gap between the income and expenditure of the state government. He informed that against the income (actuals) of Rs 1120.23 crore in 1999-2000, the expenditure was Rs 1195.40 crore. But for the year 2000-2001, the income (revised estimate) was Rs 1560.33 crore compared to the expenditure of Rs 1601.89 crore, he said in reply to a starred question by Independent member PM Syiem. "Economic measures are in the offing to wipe out the deficits. I can't tell any more about it now", he told the House hinting at tough measures in the budget for the year 2001-2002. Sharing the concerns of the members, he said that the financial crisis had affected even the plan performance of the state. "Financial institutions have refused to give fresh loans to the government as earlier loans have not been repaid", he said adding most of the loans were for rural electrification programmes of the Meghalaya State Electricity Board (MeSEB). Stating that non-plan revenue expenditure in the state is very high specially on salaries, he informed that the government spends over Rs 500 crore annually on salary alone. "It is rising and rising every year at the rate of 18 per cent," he said.