Nagaland Chief Minister T R Zeliang today presented an over Rs 1,426 crore deficit budget for the 2015-16 fiscal.
The state government has also revised stamp duty on land purchase and also increase in floor rates of VAT on tobacco, Canteen Stores Department (CSD), petroleum products and amusement tax to be effective from August 1.
Presenting the budget in the Assembly today, Zeliang, who also holds the Finance portfolio, said the total receipts for the fiscal was estimated at Rs 12,041.83 crore, while the expenditure was calculated at Rs 13,349 crore, including the Public Accounts.
The current year's transactions were estimated to result in a negative balance of Rs 1,308.32 crore, but with negative opening balance of Rs 117.97 crore, the year 2015-16 was estimated to close with a negative balance of Rs 1,426.29 crore, he said.
"This negative balance is based on the assumption that all civil deposits and backlog of Centrally Sponsored Schemes (CSS) etc. Will be discharged during the current year," he said.
"Unlike other states, we are a resource constrained state with a limited revenue base, contributing a revenue of only eight to nine per cent of the total expenditure, while we are dependent on the Centre's transfers and borrowings for the remaining," he said.
Zeliang appealed to the legislators to create awareness among the people to pay taxes and charges due to the government, including electricity and water bills.
Stating that there was limited scope available to raise resources, the CM announced increase in floor rates of Value Added Tax from the existing 4.75 for basic goods and works contact to 5 per cent, and the existing rate of 13.25 per cent for general goods to 14.5 per cent in line with the rate fixed by other states in the country.
