GUWAHATI, May 20 ? The Finance Minister Sri Devanand KoNwar today presented a grim financial position of the State and admitted that it would be difficult for the State Government to pay salaries to the employees without assistance from the Centre. Addressing a press conference today, Sri Konwar said that the debt burden of the State, which was Rs 10,600 crore when the present Government assumed office a year back, now stands at Rs 11,351 crore. The overdraft position of the State shot up the Rs 1300 crore at the beginning of this month and it now stands at Rs 700 crore.
The Finance Minister said that he had submitted a memorandum to the Union Finance Minister on May 2 with a three-point fire-fighting measure but till date, the State has not received anything from the Centre. Giving details of the three-point memorandum, he said that the ways and means advance of Rs 674 crore of last year was deducted at source at one go and the State Government has requested the Centre to provide the advance again. He said that the second point was the sales tax arrear dues from the Indian Oil Corporation amounting to nearly Rs 600 crore and the State Government has requested the Centre to release at least Rs 400 crore immediately. The State receives an amount of Rs 220 to Rs 240 crore a month on State?s share of Central taxes and ?We have requested the Centre to give two months share as advance to tide over the crisis,? he added.
Sri Konwar revealed that the State has to face a shortfall of about Rs 120 crore every month. The said that on an average, the State has to spend Rs 645 to Rs 665 crore every month, which includes Rs 380 to 400 crore on payment of salaries, pension and other committed payments, Rs 140 crore on plan and other obligatory expenditure etc . As against the expenditure, the average monthly income of the State is only about Rs 520 crore, which includes Rs 160 crore on share of Central taxes, Rs 90 crore as normal plan assistance, Rs 200 crore of the State?s own resources etc.
He said that the State?s own revenue receipts increased from Rs 1947.45 crore in 2000-2001 to Rs 2127.66 crore in te last financial year and the sales tax collection had gone up to Rs 300 crore. However, the collection of agriculture income tax had gone down drastically because of the problems faced by the tea industry. Earlier, the State received about Rs 115 crore per year as agriculture income tax but last year it received only Rs 15 crore. The Finance Minister referred to the Asian Development Bank?s decision to grant 400 million dollar loan to the State and said that the ADB had agreed to support fiscal and power sector reform schemes. ?We have also requested the ADB to appoint consultants to ensure proper utilisation of the money,? he said. The Finance Minister also demanded increase of the oil royalty rate immediately.