*No proposal for fresh tax * Receipt budget to be introduced * Highest priority to NLUP*Budget session till April 5.

Chief Minister Pu Lal Thanhawla

Aizawl, March 21, 2010: Chief Minister Lal Thanhawla on March 19 presented Rs.26.3 crore3 deficit State Budget for 2010-2011 and yet refuses to impose any new taxes.

The total budget estimate amounts to Rs.3,577.92 crore, of which 2134 crore, 65 lakh and 94 thousand rupees was for Non-Plan allocation and the Annual Plan was reflected in the size of last year’s plan as the Planning Commission has not finalized the Annual Plan for the next financial year. The budget also reflected 193 crore, 25 lakh and 24 thousand rupees as estimate for the CSS to be received during the year.

There was no proposal for fresh taxation in the budget. However receipt budget will be introduced for the first time for increasing collection of additional resources during the year. Under the receipt budget for 2010-2011, all Government Departments and organizations under it will try to achieve the target for revenue collection.

Chief Minister, Mr. Lal Thanhawla who also is the Finance Minister said, the year 2010-2011 will open with budgetary deficit of 36 crore, 17 lakh and 92 thousand rupees and this will be reduced to 2 crore, 62 lakh and 68 thousand rupees during the year. He however pointed out that the revised estimate of the debt stock of the Government as on 31st March 2010 is 3346 crore and 83 lakh rupees despite success in containing the debt stock as measured in the gross state domestic product.

The Chief Minister also said, the scope of improvement in taxation is very limited in a resource deficit state like Mizoram and the Government will however address various structural witnesses in the tax administration to increase tax and non tax revenues. He also suggested upward revision of taxes on motor vehicles.

Highlighting devolution of share of taxes by the 13th Finance Commission for the next 5 years, the Chief Minister said, 8805 crore and 30 lakh rupees has been recommended by the Commission for the share of Mizoram which registered an increase of 88.92 percent as compared to the 12th Finance Commission award. He also said that the Commission has recommended a total grant of 250 crores for addressing State’s Specific needs such as Sainik School, construction of Raj Bhawan, Jails, improvement of infrastructure for 3 District Councils, construction of playground in Khatla Aizawl, construction of Police Stations in the Border Area, additional building for Civil Secretariat etc.

The Chief Minister also said that a provision of 1136 crores and 89 lakh rupees in Non-Plan and 227 crore and 94 lakh rupees have been made in the budget estimate for meeting the increased salary expenditure for implementation of the 6th Central Pay Commission Report. He also said that the increase of salary expenditure by 10 percent is expected to take care of expenditure on salary.

The Chief Minister said, he will prefer to finalize the detail priority specific programme of the Government after finalization of the annual plan size. Highlighting NLUP, the flagship policy of the Government, the Chief Minister however said, highest priority will be accorded to this projects in an integrated manner and various Departments like Agriculture, Horticulture, Minor Irrigation, Soil & Water Conservation, Animal Husbandry, Fisheries, Forest, Sericulture, Cottage and Small Scale Industries etc. will be involved for its implementation.

The Chief Minister also presented Supplementary Demand for Grants of rupees 642 crore 80 lakh and 88 thousand for meeting liabilities during the current financial year 2009-2010.

After presentation of the Budget by the Chief Minister, the Speaker, Mr. R. Romawia adjourned the House to reassemble on the next Monday.