SHILLONG, March 28 — Meghalaya Finance Minister Dr Donkupar Roy today presented a Rs 25.22 crore deficit budget for the year 2003-2004 but announced additional resource mobilisation measures to reduce the gap to the tune of Rs 5 crore only.
Presenting the first budget of the Meghalaya Democratic Alliance Government in the State, Dr Roy hoped “it would bring in a ‘positive chance’ in the fiscal scenario in the State.” The budget estimates envisage an opening deficit of Rs 18.95 crore and a total receipt of Rs 14,428.04 crore against an expenditure of Rs 14,434.31 crore resulting in a projected closing deficit of Rs 25.22 crore.
Though no fresh taxes have been proposed, the Finance Minister imposed a hike in the licence fees of bonded warehouses, retail-off IMFL shop, bottling plants, bar, hotel and clubs, etc, which will push up the cost of liquor sold in the State. He also proposed to enhance passenger and goods taxes by a whooping 20 per cent besides hiking registration fee of motor vehicles by 15 per cent and driving licence fee by 15 per cent.
The resource mobilisation measures will also directly hit the government employees as Government residential accommodation will be 15 per cent costlier. Dr Roy imposed an additional developmental and maintenance fee on all outdoor and indoor patients to set up a revolving fund for health institutions. He revealed that the plan outlay for 2003-2004 has been tentatively fixed at Rs 605 crore as the plan discussion with the Planning Commission is yet to take place. The plan size for last year, which was fixed at Rs 545 crore, had to be reduced to a paltry Rs 385.27 crore as the State Government could not secure the required negotiated loans to fund the annual plan.
With State finances in poor shape, the Finance Minister proposed not only to continue with the past economy measures but to introduce additional economy measures. Four committees have been set up in this direction to go into the gamut of tax and non-tax issues, to identify long-pending projects, for creation of post, redundant and surplus posts and to suggest rationalization of subsidy schemes.
Expressing concern at the poor health of the public sector units in the State, he proposed to wind up four including the Meghalaya Government Construction Corporation, Meghalaya Watches and meghalaya Electronic Development Corporation. He further stressed the need to close down other PSUs like the Meghalaya Transport Corporation Housing Board and MMDC.