Mizoram CM presents Rs 14,209 cr zero-deficit budget; no new tax proposals

Mizoram Chief Minister Zoramthanga on Monday presented in the assembly a zero-deficit and non-surplus annual budget for the financial year 2023-24 with a total outlay of Rs 14,209.95 crore.

There was no proposal for levying new taxes or hiking the existing tax rates.

The chief minister also tabled supplementary demands for the current fiscal (2022-2023) amounting to Rs 3,265.69 crore. The total budget outlay was Rs 14,008 crore in the last financial year.

Zoramthanga, who also holds the finance portfolio, said that emphasis was laid on the Socio-Economic Development Policy (SEDP) and Rs 595 crore was allocated to it for the 2023-24 fiscal.

The SEDP is the flagship programme of the Mizo National Front (MNF) government which aims at bringing sustainable development by accelerating progress in key sectors through exploration and judicious use of resources.

"Out of Rs 595 crore, I commit to allocate Rs 300 crore under family-oriented SEDP for the year 2023-24," Zoramthanga, who also holds the finance portfolio, said while presenting the budget.

Under the family-oriented programme, the government has made an arrangement to distribute monetary assistance of Rs 50,000 each to 60,000 families during the current fiscal and the first instalment of the assistance amounting to Rs 25,000 each has been already disbursed to 5,996 beneficiaries, Zoramthanga said.

"Money (Rs 25,000 each for beneficiary) has been sanctioned for the second instalment, which will be disbursed during the current fiscal," the chief minister told a press conference after presenting the annual budget and supplementary demands.

At the press conference, Zoramthanga claimed that the state economy has been paralysed by the non-receipt of share of Central taxes due to the COVID-19 pandemic and the government did not receive its share of taxes amounting to over Rs 3,000 crore in the last two fiscals - 2021-22 and 2022-23.

Of the total Rs 14,209.95 crore budget, 21.90 per cent (Rs 3,141.19 crore) has been earmarked for capital expenditure and 78.10 per cent (Rs 11,068.76 crore) for revenue expenditure, he said.

While capital expenditure is meant for the creation of assets for the public, revenue expenditure covers mainly salaries and wages, pension expenses, interest payments and power purchases, among others.

The chief minister said that the new budget is a zero-deficit as well as a non-surplus budget as the amount estimated for total receipts is exactly equal to the estimated total expenditures.

Rs 60 crore has been allocated to MLA Local Area Development Fund.

To continue helping meritorious students prepare for All India Service and other Central Service examinations, the chief minister set aside Rs 50 lakh.

The government also proposed to allocate Rs 1.20 crore for higher and technical education for meeting the management requirements of various colleges in the state.

"The government is currently providing free sponsorship to 35 civil service aspirants," said Mizoram Youth Commission chairman Vanlaltanpuia.

According to the chief minister, the State's Own Tax Revenue (SOTR) in the new fiscal is exto increase by 35.32 per cent from the current fiscal and that of the State's Own Non-tax Revenue (SONTR) by Rs 60.57 crore.

He said that state GST is expected to be the main component of the SOTR.

"The state needs to strive for exploring more space for earning additional revenues as our obligations for revenue expenditure is surging while our much relied upon source - Post Devolution Revenue Deficit Grants is about to fade out in the near future," he said.