February 19, 2021

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Nagaland Post www.nagalandpost.com

Vol XXXI No. 74

DIMAPUR, FRIDAY, FEBRUARY 19, 2021 Pages 12 ` 5.00

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Rio presents tax-free `365.33 cr deficit budget ESTIMATED DEFICIT FOR 2021-22 AT RS. 2679.46 CR Correspondent

KOHIMA, FEB 18 (NPN): Nagaland chief minister Neiphiu Rio presented a tax-free deficit budget of Rs 365.33-crore for the year 2021-22 at Nagaland Legislative Assembly (NLA) here on Thursday. Reading out his 19paged budget, Rio, who also holds the Finance portfolio, said that while revenue receipts have been estimated at Rs 22,451.28 crore, expenditures have been projected at Rs 22,816.61 crore for the next financial year, thus entailing a deficit of Rs 365.33 crore. He said that on account of the negative opening balance of Rs.2314.13 crore, the year 2021-22 is estimated to close with a negative balance of Rs. 2679.46 crore. Rio informed that during 2020-21, the state’s finance were severely affected

due to the lockdowns during the pandemic, as a result the State’s revenue receiptsboth from own resources as well as Share of Union Taxes and Duties had fallen far below initial estimations projected in the budget. Thus, in view of the difficult situation faced by the state, Rio said no new taxes have been proposed, even as the social sector has been allocated 15.12% of the total outlay. He said that the State’s share of Central Taxes was reduced in the Revised Estimates (RE) of the Union Budget by Rs. 1341.99 crore while State’s own revenues was also estimated to decline by Rs.86.19 crore. Rio however, said that owing to various measures to reduce expenditure, 2020-21 was expected to close with a deficit of Rs 2,314.13 crore, which he claimed was an improvement of Rs 44.68 crore over Budget Estimate

A: Receipts State’s Own Tax and Non-Tax Revenue State’s Share in Central Taxes Central Assistance (Grants & Loans) Internal Debt (including WMA from RBI) Recovery of Loans and Advances by State Govt Total B: Expenditures Non-Development Expenditure (excluding Servicing of Debt) Servicing of Debt (including repayment of WMA) Development Expenditure (including CSS etc) Total C. BALANCE (A-B) D. PUBLIC ACCOUNT (NET) E. CURRENT TRANSACTIONS (C+D) Estimated deficit: Opening -ve balance Rs.2314.13 cr + current deficit Rs. 365.33 cr

figures. The chief minister admitted a shortfall in revenue where, against the Budget Estimates (BE) of Rs.844.49 crore for 2020-21, the Taxes Department has collected only Rs.506.20 crores as of November 2020. He said this constituted 59.95% of the target set. Another area where the state continues to lose revenue was in the Power sector, which Rio said was incurring heavy losses that are no

longer acceptable. Against an amount of Rs.407 crore spent on power purchase during 2019-20, he said the revenue earned was Rs.159 crore only. During the current financial year, against power purchase of Rs.452 crore, he said the state was expected to get about Rs.175 crore only. Rio said this showed how serious the problem has become and also that it was time to have a relook at communitisation

(` Crore) 1552.63 3787.04 9339.37 7770.73 1.51 22451.28 9316.15 7819.83 5680.63 22816.61 (-) 365.33 0.00 (-) 365.33 (-) 2679.46 cr

of the power sector . He said the situation was similar since 2010 with the state’s revenue realisation being less than 50 percent of the expenditure on power purchase since 2010-11. He stressed on making all possible efforts to increase revenue collections through measures such as better enforcement and steps to check leakage of revenue. As a part of this exercise, he said instructions have

been issued to all Government departments not to award any supply orders or works contract to the firms or contractors who are not registered with the Taxes department to reduce scope for evasion of taxes. In order to curtail expenditure under non-development (state resources), Rio said like the central government, the state government has frozen three instalments of Dearness Allowances and Dearness Relief payable to the State Government employees and pensioners. Further, he said expenditure under various items such as office expenses, travel expenses, motor vehicles and maintenance under non-development were also reduced by 15 per cent. In addition, purchase of new vehicles and fresh appointments have also been put on hold. He said there has also been 15 per cent reduction in the development outlay given to various departments. (See more budget reports on p-2 & p-7)

Assembly adopts 4-point resolution on Naga issue Correspondent

KOHIMA, FEB 18 (NPN): Nagaland Legislative Assembly (NLA), which adopted a four-point resolution on the Naga political issue on the fourth day of the ongoing assembly session, Thursday urged the Government of India and the Naga political groups (NPGs) to sit across the table for the conclusion of the political negotiation, which was honourable, inclusive and acceptable to the people as “one solution” without any further delay. The resolution, moved by state chief minister Neiphiu Rio and seconded by TR Zeliang Leader of Opposition, was adopted by voice vote. In honouring and adhering to the voice of the people, the House endorsed and reiterated all past resolutions of the NLA on the “Indo-Naga” political issue, and resolved to work unitedly in facilitating the “Indo-Naga” political negotiations.

Urges GoI, NPGs to sit across the table for conclusion of pol negotiation The House also appreciated the continued efforts made by the Government of India to resolve the “Indo-Naga” political issue through peaceful means and for acknowledging the unique history and identity of the Nagas by upholding the Naga political talks. Further, the House acknowledged and appreciated the efforts made by all NPGs, political parties, civil society organisations, Churches and NGOs towards finding a peaceful resolution of the “Indo-Naga” political issue and appealed to all to continue working towards strengthening Naga unity, and come together in the spirit of oneness for larger interest of the Naga people.

State govt to review prices of fuel, says Rio Budget contractCorrespondent

KOHIMA, FEB 18 (NPN): Nagaland chief minister Neiphiu Rio Thursday assured to look into the issue of high petroleum prices in the State and try to make them lower than Assam and Manipur. Addressing the media at the Assembly committee room here after presenting the budget, Rio said the State government was seized of the matter and was reviewing it. He remarked that Assam reduced the fuel prices as the Assembly election was approaching there and termed it as a “populist measure”. He pointed out that petroleum prices were lower in Nagaland than Assam and Manipur all these years. Austerity measures saved over Rs 400 cr: Rio said the austerity measures that were put in place helped the State save over Rs 400 crore. Responding to queries on the State government’s intent to bring down salary expenditure as mentioned in his budget, he pointed out that 15th Finance Com-

mission was reducing deficit grant year after year, which was a warning for the government to scale down its employment. He said austerity measures, including ban on appointment, were taken following less receipt of State’s share in Central taxes and less revenue receipt from the State’s own resources due to COVID pandemic. He mentioned that appointments had to be rationalised and were done on need basis as the Finance department showed its serious concern over the increase in non-Plan expenditure. According to Rio, as salary component of State government employees, pension and debt servicing comprised more than 65% of the State’s finance, the government was left with only 35% for developmental activities Rs 260 cr deficit on power: Rio said the State incurred an annual deficit of Rs 229 crore in power sector in 2019-2020, which was projected at Rs 260 crore in 2020-2021. He said the cabinet decided to reform

power sector and brought the issue to the legislators’ notice to maintain transparency, adding that the opposition members were positive in this regard. He said not only the power department, but other departments too must be reformed. ‘Gov’s speech his own’: Referring to the controversy generated over governor RN Ravi’s claim during his address to NLA that negotiations between Government of India and Naga groups had concluded, Rio claimed that it was governor’s “own statement”. Not denying that the governor’s speeches were generally approved by the cabinet, Rio said these were Ravi’s “own words and we cannot make any correction.” He recalled that Ravi, who is Centre’s interlocutor for Naga talks, had also announced that negotiations would be concluded on October 31, 2019. Stressing on transparency, Rio admitted that there could be some differences. “However, the PDA has no differences with Raj Bhavan over governance

Petrol, diesel prices hit record high DIMAPUR, FEB 18 (NPN): Fuel prices continued to touch record highs across the country after stateowned oil marketing companies (OMCs) increased the prices of petrol and diesel price for the 10th consecutive day on Thursday.

This is it!

“With assembly polls on the way, we are to gear up for conducting raids on some politicians.” K Y M C

According to a price notification of state-owned OMCs, petrol price was hiked by 34 paise per litre and diesel by 32 paise. After Thursday’s price increase, petrol in Delhi costs Rs 89.88 per litre and diesel Rs 80.27. In Dimapur, petrol price crossed Rs.92-mark with a litre of petrol being sold at Rs.92.30. Diesel price, on the other hand, also crossed Rs.83-mark. A litre of petrol was priced at Rs. 83.21 per litre on Thursday. Likewise, in the state capital Kohima, petrol price crossed Rs.93mark and diesel price inched closer to Rs.84 per litre. Petrol now costs Rs.93.23 per litre while diesel is priced at Rs.83.94 per litre. In 10 straight days, prices have gone up by Rs 2.93 per litre for petrol and Rs 3.14 per litre for diesel. Fuel prices differ from state to state depending on the incidence of local taxes

such as VAT and freight charges. Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 a litre on diesel. Retail petrol rates have risen by Rs 20.29 per litre since mid-March 2020, after the government raised taxes by a record margin to mop up gains arising from fall in international oil prices. Diesel rates have gone up by Rs 17.98. The relentless hike in prices has been criticised by the opposition parties including the Congress, that has demanded an immediate cut in taxes to ease the burden on the common man. Pradhan last week had told Parliament that the government is not considering a reduction in excise duty to cool rates from their record highs.

and we were functioning well,” he remarked. Asked to comment on minister Temjen Imna Along’s statement in the House that during his visit to Delhi along with some of State leaders, Union home minister Amit Shah had reportedly said that the demand for flag and constitution was out of question, Rio said he was not aware of any such statement. He however said that during his discussion with Shah along with his cabinet colleagues, the Union minister was forthcoming in advising them to offer suggestions for hammering out an amicable and practical solution. He mentioned that Shah might have told Along during a separate meeting, but not during his meeting with the home minster. Gov’s R-Day speech: On Ravi’s reference to Naga political issue during his Republic Day speech that attracted lots of criticism, Rio explained that speeches were prepared by the State government.

State reports Farmers stage 4-hour oriented: Zeliang 1 COVID-19 nationwide ‘rail roko’ case, 1 death Correspondent

KOHIMA, FEB 18 (NPN): Reacting to chief minister Neiphiu Rio presenting a Rs 365.33-crore deficit State Budget for the year 2021-22 in Nagaland Legislative Assembly here on Thursday, leader of opposition TR Zeliang termed it a “contract-oriented budget”. When contacted for reaction, Zeliang told Nagaland Post that when people were suffering, it was unfortunate that the PDA government was talking highly of development with little available fund. He said the chief minister’s budget speech had no plan to rejuvenate the economy of the State, which was badly battered by COVID-19 pandemic, insisting that the government must and should plan how to redress the grievances of the farmers and business community. With regard to SARFAESI Act, Zeliang said due to a self-made disaster by Law and Finance departments, banks had stopped giving loans, which made the overall situation that was already reeling under the impact of COVID-19 pandemic go from bad to worse. The people (Cont’d on p-8) suffered silently, he added.

DIMAPUR, FEB 18 (NPN): Nagaland reported one COVID-19 positive case from Mokokchung including one COVID death in Dimapur. The State Health department daily COVID19 bulletin, informed that six more patients have recovered in Dimapur taking the total recovery in the state to 11,919. The recovery rate improved to 97.76 per cent. The total active cases detected in the state are 12,191. Total active case in the state is 29. Till date, the state has registered a total of 81 COVID-19 deaths. Meanwhile, a total of 21,014 doses of vaccine have been administered across the state till date and no adverse events reported. State immunization officer (UIP) Dr. Ritu Thurr, said 8,007 health care workers received the first dose with a coverage of 37% and 10,346 frontline workers received the first dose with a coverage of 20% till date.

Farmer block a railway track in Amritsar, Thursday. (PTI)

NEW DELHI, FEB 18 (PTI): Agitating farmer groups on Thursday held a four-hour nationwide ‘rail roko’ agitation with the railways saying there was negligible impact on services though some trains were stopped by officials at stations as a precautionary measure. In Punjab and Haryana, farmers at several places squatted on railway tracks which led to disruption in normal movement of trains on some routes. Protests were also staged at some places in Uttar Pradesh, Maharashtra and Karnataka in response to the call by Samyukta Kisan Morcha, an umbrella body of farmer unions which is spearheading the agitation against the three farm laws. However, in many states, it was a low-key affair. SKM called the blockade “peaceful and successful”. In a statement, it claimed trains were stopped between 12 pm and 4 pm at “hundreds of locations” across the country. “Anger among farmers is intensifying and the central government will have to repeal the laws,” it said.

House deliberates on losses in state power sector Correspondent

KOHIMA, FEB 18 (NPN): Advisor power, Tovihoto Ayemi, Thursday informed the House that the department of power had taken several initiatives to improve meter reading, billing, and collection to improve electricity revenue, but asserted that there were much more challenges and areas for improvement in the electricity revenue sector. Participating in the discussion on improving power revenue on the fourth day of the ongoing assembly session, Ayemi presented some of the main issues pertaining to revenue performance and redressal. He said that there was acute shortage of meter readers besides low work culture. Ayemi revealed that while billing, due to improper meter reading a vast number of consumer bills were generated as average

and minimum bills as the department was supposed to generate electricity bills every month. He said this resulted in meter bills becoming huge and inviting complaints and resentment from consumers and leading to poor collection of revenue. He also said many rich people were also wilfully not paying electricity bills that also encouraged all kinds of vices. The Advisor also said that communitisation of power was another cause for poor revenue collection and for which the Power department has proposed some interim measures to improve metering, billing and collection. He said after the cabinet approved outsourcing process, it would be done by a well-qualified registered company with sound managerial and financial capabilities. He said the power department would work out detailed proce-

dures and technicalities including vigorous monitoring mechanism. Ayemi said the selection of firms will be done through E-tendering. Initially, the outsourcing would be targeted at most revenue intense towns like Kohima, Chümoukedima, Wokha and Mokokchung which would later be expanded. He said communitybased system of collection of revenue as in the case of communitisation should be stopped while electricity should be taken out from the purview of Nagaland Communitisation of Public Institutions and Services Act, 2002. He said existing meter readers and billing assistants in the concerned areas would be redeployed for various vigilance, monitoring and supervising activities related to revenue. Initiating the discussion on matters of urgent public importance pertaining to “Power Reform in

Nagaland”, PWD (H&M) minister, Tongpang Ozükum, said even after more than 50 years Statehood, Nagaland was able to produce only 26.5 Megawatts (MW) of power which was a mere 15% of the State’s requirement of 250 MW annually. He said when other North Eastern states were planning for more power generation and export it to earn additional revenue, Nagaland was still focused on how to balance the dynamics of power trading, buying and selling in order to minimise the huge loss incurred annually. Citing from administrative report of Power department 2019-2020, Ozükum said so far Nagaland was able to successfully develop and commission only the Likimro Hydro Electric project which produces 24 MW and other three smaller projects which together produce on

2.5 MW. Drawing examples of neighbouring states such as Arunachal Pradesh where the government had proposed to develop 138 small hydro-projects across 25 districts with a total capacity of 356 MW, Ozükum said it was high time that Nagaland also gave utmost importance to power sector and aim for a higher power and revenue generation. He also drew the House’s attention to communitisation of power and asked whether it was serving its intended purpose and why there was no improvement in revenue generation under it. Ozükum also stressed on the need to seriously scrutinise the loopholes in the revenue collection system, find out the factors for the losses and further review the communitisation policy, which had been in place for the past ten years. (Cont’d on p-5) K Y M C


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