Meghalaya Chief Minister Mukul Sangma today presented ₹819 crore deficit budget for 2015-16, withdrawing exemptions on diesel and petrol and hiking taxes on cigarettes and other similar products.

The State government has also increased cess on minerals to mop up additional revenue.

“I am presenting the 2015-16 budget with a fiscal deficit of about ₹819 crore which is around 2.8 per cent of the Gross State Domestic Product (GSDP),” Sangma told the Assembly while presenting the budget.

Estimating the total receipts at ₹9,282 crore as compared to ₹11,156 crore last year, he said revenue receipts are estimated at ₹8,403 crore and capital receipts at ₹879 crore.

The revenue shortfall was due to the impact of National Green Tribunal’s ban on coal mining which reduced the state’s revenue by ₹600 crore annually, he said.

In last financial year, the State’s tax and non-tax revenue was estimated at ₹1,885 crore, Sangma said, adding that the same is projected at ₹1,347 crore for 2015-16.

The total expenditure has been estimated at ₹9,583 crore, excluding repayment of loans and other liabilities, of which revenue expenditure is estimated at ₹7,621 crore and capital expenditure at ₹1,962 crore, the CM said.

Stating that the fiscal deficit (2.8 per cent of GSDP) is anchored within an annual limit of 3 per cent as per the 14th Finance Commission fiscal roadmap, he said the State will be eligible for an ‘additional borrowing limit’ of 0.25 per cent of the GSDP.

Petrol, diesel, cigarettes to cost more

Spelling out measures to generate additional resources, he said the government proposes to withdraw exemption of ₹0.50 per litre on diesel and 50 per cent of ₹1.13 exemption on petrol, besides increasing tax on diesel from 12.5 per cent to 13.5 per cent.

Sangma said increasing the tax on cigarettes and other similar items by 7 per cent from the current 20 per cent and cess on cement clinkers is expected to generate additional resources to the tune of ₹30.91 crore annually.

Sangma also said that the recent enhancement of tax from 13.5 per cent to 14.5 per cent under schedule IV of Meghalaya Value Added Tax Act will generate ₹25 crore additional income apart from ₹5.28 crore which is expected to be raised during the fourth quarter by increasing ad valorem levy and reclassification of IMFL (Indian Made Foreign Liquor) brands.

The State government has also pledged a development plan outlay of ₹681.88 crore for education, ₹555.2 crore for roads and bridges, ₹509.9 for CnRD (Community and Rural Development), ₹380.5 crore for health and ₹147 crore for agriculture.

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