Kohima: Nagaland chief minister Neiphiu Rio did not propose any new tax for 2010-2011 even as he presented Rs 603.64-crore deficit budget for the financial year on July 22.
In his budget speech in the assembly, the chief minister, who also heads the finance portfolio, said the current year's transaction was estimated to result in a negative balance of Rs 5.94 crore.
He said the estimated gross receipt stood at Rs 6416.39 crore and the gross expenditure at Rs 6434.83 crore in the proposal for the next year's budget. "The 2010-2011 budget closed at a negative balance because of the estimated negative opening balance of Rs 597.70 crore," the CM said.
He added that no new taxes were proposed for the current year, but better realization of revenue would be stressed at existing rates. "For our internal revenue collections, I have set the target at Rs 369 crore as against the estimated figure of 2009-2010 budget. This represents a growth of 15 %," he told the assembly.
Rio added that it's a matter of concern that in the fifth decade of statehood, the state's resources could barely meet the salary expenditure for two months. This despite the fact that over the last 10 years, the state's revenue has risen from Rs 88.70 crore during 2000-2001 to Rs 321 crore in 2009-10.
The minister said he had held a series of meetings with officials from the revenue collecting department to examine the loopholes in the existing system and take corrective measures while exploring all possible options for mobilisation of additional revenue.