Chief Minister presents budget estimates for 2012-13

Imphal Jun 10 MNS : Chief M inister O Ibobi Singh who also holds the finance portfolio presented the state deficit budget in the state Assembly today. Two minute silent was observed in remembrance of Damjakhai Vaiphei, former member of Manipur Legislative Assembly (Pre-merger) 1948-49 from Churachandpur constituency in the august house on Monday. Speaking […]

Imphal Jun 10 MNS : Chief M inister O Ibobi Singh who also holds the finance portfolio presented the state deficit budget in the state Assembly today.
Two minute silent was observed in remembrance of Damjakhai Vaiphei, former member of Manipur Legislative Assembly (Pre-merger) 1948-49 from Churachandpur constituency in the august house on Monday.
Speaking in the obituary reference CM O. Ibobi Singh said that the state has lost one of the most important persons who have guided the state right after the Independent of India.
Damjakhai Vaiphei is one among the tribal who was the first member of the Manipur Legislative Assembly.
Apart from chief minister, MLA T. Manga Vaiphei, Shyam Kumar speak in the obituary reference.
CM said, “As you are aware, a full budget could not be presented in the last Assembly session due to non-finalization of Plan outlay for 2013-14. We obtained only a Vote on Account to meet essential expenditures during the first four months of 2013-14.
Sir, I am pleased to inform this august House that the Plan outlay of the state for this fiscal year has now been finalized. Following discussion with the Planning Commission, our Annual Plan Outlay has been fixed at Rs 3650 crores for 2013-14. These plan funds will be utilized for completing ongoing projects and taking up some new important developmental works, which I will explain in detail later.
When I presented the vote on account, I had spoken about the severe resource-crunch that we were facing. I also spoke about the need for us to take concerted steps to prudently manage our resources and check unproductive and non-essential expenditures. Despite severe financial constraints, we were able to close the fiscal year, 2012-13 with a balance of (-) Rs 364.76 crores. This is lower than the negative closing balance of (-) Rs 510 crores during 2011-12. Our ways and means position has improved and this is expected to consolidate further as Plan releases from the Centre begin during the course of the year.
Our fiscal deficit during 2012-13 is estimated at below 1 percent, which is within the ceiling of 3.5 percent of Gross State Domestic Product mandated by the Manipur Fiscal Responsibility and Budget Management Act. Our outstanding fiscal liability as percent of GSDP is 57.29 percent which is within the ceiling of 60.10 percent mandated by the FRBM Act. During the current fiscal year, we intend to continue with the fiscal tightening process. We are aware that the fiscal imbalance we are facing is not temporary in nature and only fiscal tightening will not resolve the problem in the long term. We will be strongly urging the 14th Finance Commission to adequately address all our concerns, particularly relating to the gap in our non plan resources, when we submit our memorandum to the Commission.
On the economy front, we know that the overall domestic economic I environment is not favourable. But, we have been able to sustain the growth momentum. As per the Advance Estimates, for 2012-13, our I economy grew at 7.13 percent in real terms. Given the fact that the overall growth of the country was only 5 percent, our consistent I growth at almost 7 percent during the last two years is a very positive development. The primary sector is growing at over 8 percent for the I second consecutive fiscal year and has emerged as a growth driver. It has been the effort of my government to provide a conducive I environment for growth and development. We will continue to try and accelerate the growth momentum in a broad based and inclusive I manner.
Budget Estimates, 2013-14 Sir, I will now take up the Budget Estimates for 2013-14 which has I been framed in the light of the challenges we continue to face in regard to the economy in general and state resources in particular. I
Estimates of Receipts (2O13-14) .
For 2013-14 (BE), the total Receipts are estimated at Rs 8990 crore.
This shows an increase of 10.11 percent over 2012-13 (RE) level of I Rs 8164.14 crore. While the revenue receipts are estimated at Rs 8619.47 crore, the Capital receipts including Public Account receipts are at I Rs 370.53 crore.
Sir, we have been making efforts in recent years to improve our tax and non-tax collections. Total estimates of state’s own tax and non-tax I receipts assumed in the Budget Estimates are Rs 491.87 crores and Rs 429.77 crores respectively. Together, they constitute 10.69 percent of our total revenue receipts. The tax to GSDP ratio has also increased because of our efforts. It has gone up from just 2.37 percent in 2009-10 to 3.68 percent in 2012-13. Collection from VAT and Power, the two largest sources of state revenues, is estimated at Rs 385.88 crore and 171.69 crores respectively. While 14 percent growth is expected in VAT receipts, collection from power is expected to grow at 27 percent. We have recently taken a number of^measures aimed at minimizing transmission and distribution losses such as, introduction of prepaid meter system, computerized billing system, and renewed drive against unauthorized consumers and tax defaulters. This is likely to help us increase the collection from Power sector gradually. Structural reforms of the power sectors are also underway and the power scenario in the State is expected to improve significantly once these reforms are put in place.
Receipt from the State’s share in Central Taxes & Duties are estimated at Rs 1568.85 crores as per indication received from the Central Government. Non-Plan grants from the Centre, mainly consisting of 13th Finance Commission grants, are estimated at Rs 1563.37 crores. Plan Grants including receipts on account of centrally sponsored and central plan schemes are estimated at Rs 4565.61 crores.
Expenditure Estimates (2013-14)
On the Expenditure side, I am proposing a total expenditure of Rs 9397.78 crores out of the Consolidated Fund of the State. There is an increase of 16.86 percent over the Revised Estimates (RE) of 2012-13 which is Rs 8041.85 crores, mainly because of higher outlays under the state plan and other schemes where assistance is received for earmarked purposes. Out of the total expenditure, Rs 4907.83 crores are proposed under Non-Plan, Rs 3667.41 crores under State Plan, and Rs 822.54 crores under Centrally Sponsored Schemes (CSS) and Central Plan Schemes (CPS). The provision in respect of the CSS and CPS are subject to change according to actual releases during the course of the year.Out of the total expenditure, an amount of Rs 617.68 crores is Charged. The remaining amount of Rs 8808.77 crores which includes recoveries is Voted expenditure. The estimated expenditure on revenue account is at Rs 6692.95 crores while that on capital account isRs 2704.83 crores.
The total expenditure under the non-plan revenue account which is mainly for meeting the establishment and related expenses of the state is projected at Rs 4732.51 crores during 2013-14. This shows an increase of 6.28 percent over the Revised Estimates of 2012-13. But, the increase in respect of non-salary items of expenditure has been provided at only 3 percent. This has been done keeping in view our. objective of containing the non-plan expenditure.

Plan Outlay
Expenditure under Plan is one of the most important components under the State Budget. Plan expenditure is aimed at giving impetus to development and creating capital assets. Sir, because of our concerted efforts and the generous support received from the UPA Government at the Centre, plan investments over the last two to three years have increased many fold. This has indeed provided the much needed push to take the State to a higher growth trajectory.
The aggregate plan outlay for 2013-14 as agreed with the Planning Commission is Rs 3650 crores. The plan outlay will be financed from many sources. We will receive Normal Central Assistance of Rs 907.78 crore for this purpose. An additional Special Plan Assistance (SPA) of Rs 450 crores will be available for taking up important and priority projects in the State. While enhanced plan outlay provides us an opportunity to give a strong impetus to the growth momentum, it also entails obligations for us. We have to raise more resources and exercise maximum restraint in order to restrict fresh liabilities on the non-plan account. We have to take serious steps to realize the targets for additional resource mobilization envisaged in the scheme of financing. I solicit the co-operation and support of all honorable members in our effort to realize these resources.
Rs 1632.58 crores out of the total outlay will be financed under various schemes under Additional Central Assistance including NEC and NLCPR schemes. It is notable that, from the current year, all provisions made for schemes under Non-Lapsable Central Pool of Resources (NLCPR) and North Eastern Council (NEC) will be part of the state plan. For the year 2013-14, we have made a provision of Rs 94.63 crores for schemes supported under NLCPR and Rs 44.82 crores for NEC supported schemes. In addition, we have also provided for Rs 6.53 crores and Rs 10.88 crores of unspent amounts received last year for NLCPR and NEC-assisted schemes respectively.
The rest will be financed by way of assistance under Externally Assisted Projects, Open Market Borrowings, Negotiated Loans, Small Savings Loan and balances from the Public Account. We will be raising a net borrowing of Rs 387 crores during the year 2013-14 to finance our expenditure.
In terms of sectoral allocation, highest emphasis is accorded to social services sector with an allocation ofRs 978.14 crore, which is 26.80 percent of the total allocation, followed by irrigation and flood control sector with if 948.70 crore and general economic services with Rs 685.63 crore. Of the Rs 800 crore under special central assistance, Rs 485 crore is provided to meet the backlog and current state matching share of CSS/ACAs and flagship programmes.
Let me now briefly mention some of the work, schemes and projects we propose to take up under Annual Plan, 2013-14. Allocation of the outlay among various sectors has been made in accordance with the needs of development and priorities of the Government. As I have mentioned earlier, out of the approved outlay of Rs 3650 crores, Rs 450 crores is devoted to taking up important and priority projects under Special Plan Assistance (SPA). This will also help us address critical gaps in vital infrastructures. Out ofRs 450 crores under SPA, Rs 102.30 crore is for up gradation of various roads and bridges in both hill and valley districts, and a sum of Rs 60 crores is for infrastructural development of JNIMS, Rs 15.00 crores for completion of the balance work for conservation and management of Loktak Lake and associated wetlands, and Rs 40.00 crores for flood control and anti erosion schemes. I am happy to inform that an amount of Rs 30 crores each has been earmarked under SPA for phase-I 85 phase-II of the Tribal Areas Inclusive Infrastructure Growth Projects that will cover altogether 27 development blocks in the Hill Areas. This project which envisages construction of integrated complexes for SDO-cum-BDO offices will also include sufficient office and residential accommodation for bank branches. We expect that this will not only improve governance at the cutting edge level in the hill areas but also significantly increase banking penetration in the outlying and interior areas of the State. As part of our continuing initiative to strengthen school infrastructure in the hills areas, we propose to allocate an amount of Rs 25 crore out of the SPA funds for construction of residential Quarters for the Primary Teachers in ADC areas.
Some new projects that are proposed to be funded out of SPA during the current year are setting up of Information Technology Special Economic Zone at Mantripukhri, for which an amount of Rs 20 crores has been earmarked. The proposed economic zone will cater to both local and outstation entrepreneurs with a view to generate employment opportunities for the educated youth in the State. The total estimated cost of the project is Rs 832 crore and it would be implemented in two phases through a Public-Private Partnership model. Construction of 6 children homes is proposed with a view to check child trafficking and an amount of Rs 10.80 crores has been earmarked for this purpose. For the augmentation of much needed security infrastructure in the Hill areas, there is an allocation ofRs 10 crores.
Keeping in view the importance of forests for maintenance of natural environment and livelihood security of people, we propose to take up during the current year an externally aided project for regeneration and conservation of forests in catchment areas of water supply project. The project having a total estimated cost of Rs 628 crore will aim at regeneration and conservation of forest in the catchment areas as well as mitigating water supply problems in the State. An amount of Rs 50 crore is provided under EAP.
One of our priorities during the year will be on augmenting drinking water supply, in the Imphal city. A project with an estimated cost of Rs 687 crores is envisaged for utilising raw water from Thoubal dam. Once implemented, this project will substantially address the existing large demand-supply gap of water supply in the Imphal city. An amount of Rs 50 crores is earmarked under EAP for this project.
Our economy is agriculture based. Hence the State Government is committed to the development of agriculture and the farmers. The outlay for agriculture and allied sector has been stepped up from the revised outlay ofRs 201.19 crores during 2012-13 to Rs 243.76 crores during 2013-14, showing a growth of 21.16 percent. The enhanced outlay will help in sustaining the growth momentum in the primary sector.
Sir, development of agriculture is not possible without improvement of irrigation. The state government will continue to give priority towards development of water resources. Allocation for Major, Medium and Minor Irrigation during 2013-14 is at Rs 740 crores, which is 20.27 percent of the total Plan outlay and 19.90 percent higher than the allocation made in the Revised Estimates for 2012-13. The allocation for Major & Medium Irrigation will be used mainly for ongoing Thoubal and Dolaithabi projects.
With a view to further augment physical connectivity in the State, Rs 163.86 crores are provided towards Roads & Bridges which include an amount of Rs 102.30 crores for upgradation of road connectivity in both hill and valley districts under SPA and further Rs 11.46 crores for various other roads and bridges projects. For the infrastructural development of border and tribal areas, a sum of Rs 33.46 crores has been earmarked under Special Area Development Programme, which includes an amount of Rs 20 crores for Border Area Development Programme.
Reliable power is a pre-requisite for growth and development. An amount ofRs 130.87 crores has been allocated to the power sector with the twin objectives of improving the power situation and enhancing the revenue collections this year.
There is an allocation of Rs 139.23 crores for the Education, sports, Arts and Culture, while the Health and Water Supply sectors have been provided a sum ofRs 310.61 crores. For urban development, an amount of Rs 338.29 crores has been earmarked, which is 67 percent more than the allocation made in the Revised Estimates of Rs 202.73 crores for 2012-13. The enhance allocation will help us in improving the basic urban services in the State. Adequate provision has also been made for state matching share of flagship social sector schemes so that implementation of these important schemes do not suffer due to inadequate provision of state’s share component in the State budget.
Continuing with my government’s commitment to the strengthening of the local self government institutions in the hills, an allocation of Rs 132.75 crores has been made for the Autonomous District Councils, which includes, among others, an amount of Rs 26 crores for construction of modern primary school buildings in the hill districts. This will help accelerate the much needed infrastructural development in the hill areas.
Sir, our government has always emphasised the socio-economic advancement of scheduled castes, minorities and other backward classes in the interest of inclusive development. We propose to allocate a sum ofRs 17.80 crores for this purpose.
Khadi and Village Industries, and Sericulture play an important role in an economy like ours where there is no presence of major industries. These sectors provide direct employment as well as supplementary employment to lakhs of households in the State. With the objective of further promoting and developing our industrial sector an amount of Rs 97.70 crores has been earmarked during the current year. This includes EAP component of ^ 50 crores for taking up works under the Phase II of the Manipur Sericulture Project.
Sir, I would like to conclude by highlighting once again the necessity of utmost restraint and financial prudence in our expenditure. I am sure our government will receive full cooperation of the Honourable members of this House in achieving this objective.
With this submission, Mr. Speaker Sir, I present the Budget Estimates for 2013-14 for approval of this August House.