Government of Mizoram
Budget Speech: 1990-91
By Pu J.Lalsangzuala
Sir, I feel greatly privileged in having the honour
to rise before this august House to present the Revised Estimates
for the current financial year 1989 –1990 and the Budget Estimates
for the next year 1990-1991.
In order that the House has proper appreciation of
the constraints under which the Budget has been framed, may I, at
the outset give a little past background? The State Government has
been facing financial year 1987 – 1988 onwards. The financial year
1987-1988 ended with a deficit of Rs. 53.41 crores as per the Reserve
Bank of India.
The problems continued in 1988-1989 also the end
of which there was a deficit of rs. 59.47 crores as per the Reserve
Bank of India. The Government of Mizoram had requested the Government
of India to provide additional financial assistance to cover the deficit.
The Government of India appointed a Committee of senior officers headed
by Dr. P.D. Mukherji, Consultant, Planning Commission to go into the
whole matter and in the meanwhile, gave some temporary assistance.
The Committee, headed by Dr. Muherji visited Mizoram
in October, 1989 and submitted their report to the Govt. of India.
We have been pressing the govt. of India for an early decision on
the report of the Committee’s recommendations. We hope that additional
financial assistance will be given by the Govt. of India to clear
the past deficit.
Another problem which the Govt. of Mizoram has been
facing is the huge loan liability incurred during the period when
Mizoram was a Union Territory. The total loan liability to the Govt.
of India outstanding as on 20.2.1987 into grants. A memorandum was
also submitted to the 9th Finance Commission on the same
lines. The report of the 9th Finance Commission has just
been laid in Parliament. This report is yet to be examined by the
Government. However, it is learnt that the Commission have recommended
some relief to the State on this account. Pending a final decision
by the Govt. of India on this issue, the interest and principal due
in 1988-1989 on loans received during the U.T. period were not paid
by the Mizoram Government. Therefore in the current financial year,
the total liability on this account is Rs. 54.94 crores out of which
Rs. 26.14 crores is for payment of interest and Rs. 28.80 crores is
for repayment of principal. While payment due on the loans received
after Mizoram became a State would be made to the Govt. of India in
time, the payment in respect the report of the 9th Finance
Commission is examined, and the final decision of the Govt. of India
is received on our representation.
In the meanwhile, Govt. of Mizoram has been taking
a number of steps to enforce financial discipline and economy in expenditure.
These steps include crubs on purchase of furniture and furnishings,
curbs on creation and filling up of posts, checking of cash accounts
of various departments and offices and disciplinary action against
officials found to be responsible for financial irregularities. We
hope to continue these measures more vigorously during the coming
REVISED ESTIMATES 1989-1990
As per the Revised Estimates, the financial year
1989-1990 is estimated to end with a deficit of Rs. 65.26 crores.
This includes provision for payment of Rs. 54.94 crores to Govt. of
India as interest and principal on loans.
On the Plan side, the approved Plan Outlay for 1989-1990
was Rs. 102 crores against which the actual expenditure is estimated
at Rs. 102.54 crores. Under the Plan, the major emphsis has beeen
on Agriculture, Rural Development, Rural Housing, Rural Water Supply,
Communication and Rural Electrification so that the people living
in the villages derive maximum benefit from the Plan Schemes.
In appreciation of our satisfactory performance in
Plan implementation and the measures taken by the Government of Mizoram
to enforce financial discipline and mobilize financial resources,
tehe Planning Commission have approved an outlay of Rs. 125 crores
for 1990-1991. I am glad to say that Mizoram has received the highest
percentage increase in Plan outlay among all the states and Union
Territories of the Country. The Govt. of Mizoram, under the dynamic
leadership of our Chief Minister, Pu Lalthanhawla, take this opportunity
to pledge ourselves for greater efforts in the coming year for the
benefit of the people of Mizoram.
Out of the Rs. 125 crores of Plan outlay proposed
for 1990-1991, Rs. 18.47 crores will be spent on agriculture and allied
activities, Rs. 12 crores on programmes under the New Land Use Policy,
Rs. 5.3 crores on other rural development programmes, Rs. 2.77 crores
or irritation and flood control, Rs. 9.33 crores on Water Supply and
Sanitation, Rs. 18.16 crores on Roads and on Industries and Minerals
and Rs. 16.99 crores of Roads and Bridges. As in 1990-1991 our emphasis
will be on Agriculture and Rural Development in 1990-1991 also.
BUDGET ESTIMATES FOR 1990-1991
Mizoram, being a backward State, will not be able
to meet its requirements of funds from its won resources. We will,
therefore, be depending, to a large extent, on the funds to be received
from the Govt. of India under the award of the 9th Finance
Commission. At the same time, as a State, Mizoram has to raise its
own resources if we have to implement more schemes for the benefit
of the people. Therefore, the government have decided to make all-out
efforts to raise additional resources. A number of measures have been
proposed in my budget for 1990-1991 for additional resources mobilization.
The following are the measures proposed to be implemented:-
The foremost of these measures is the enforcement
of the Mizoram Sales Tax Act, 1989 with effct from 1.4.1990. 97 items
of goods in all, including 22 items of special luxury goods, have
been notified under the Act as taxable. A tax at the rate of 5 percent
will be levied on these goods at the first point of sale. This measure
is expected to yield an additional revenue of Rs. 190 lakhs in 1990-19991.
Secondly, an additional revenue of Rs. 60 lakhs in
1990-1991 is proposed to be raised by the Revenue Department by revision
of rates of Trade Tax, House Tax, Fees etc.
Thirdly, it is proposed to revise the electricity
tariff in such a manner as to have an average rate per unit sale of
105 paise compared to 91 paise at present. This is expected to yield
an additional revenue of rs. 55 lakhs in 1990-1991.
Fourthly, it is proposed to raise an additional revenue
of Rs. 20 lakhs through enhancement of Bus fares and hiring charges
Fifthly, it is proposed to raise an additional revenue
of rs. 75 lakhs next year from revision of various charges by the
Water Supply Department. It is proposed to realize house connection
service charge and increase the existing rate of Rs. 30/- per month
per house connection.
Sixthly, the rates of tax on profession, Trade, Calling
and Employment will be enhanced. As a result, there will be additional
revenue receipt to the tune of Rs. 10 lakhs during 1990-1991 Further,
the rates of tax on sale of Petroleum and Petroleum products including
motor spirit and lubricants will be revised from 10 paise to 20 paisee
per litre of motor spirit and from 7 paise to 10 paise per litre of
diesel oil. A tax at 10% will be levied on L.P.G. These measures will
fetch additional Rs. 3 lakhs.
Seventhly, we expect to get an additional revenue
of Rs. 90 lakhs from the sale of teak thinning materials from teak
plantations. An additional revenue of Rs. 10 lakhs in 1990-1991 is
expected by way of hiring charges of the 16 bulldozers with the Agriculture
Further, an additional revenue of rs. 1.50 cores
is expected from the State Lotteries.
The Budget estimates for 1990-1991 envisage total
receipt of Rs. 389.71 crores and total expenditure of rs. 394.42 crores
(net) thus leaving a deficit of rs. 4.71 crores. Details of the transactions
in the Consolidated Fund, contingency Funad and Public Accounts are
given in the Statement. In casee our loan liability to the Govt. of
India for the U.T. period is reduced as a result of the 9th
Finance Commission’s recommendations or otherwise, there will be improvement
in the financial position.
Before concluding, I would like to call upon the
Hon’ble Members to bestow their well-considered thoughts on the various
proposals made in the next year’s Budget Estimates and favour this
augut house with the benefit of their valuable ideas, experience and
advice. In the end. I would like to express my thanks to the officers
and staff of the Finance Department for preparing the Budget in a
short time. I also would like to thank the Printing & Stationery
Department for getting the documents printed expeditiously.
With these words, Sir, I now present the Revised
Estimates for 1989-1990 and Budget Estimates for 1990-1991 and commend
them for the consideration and approval of this august Home.