Kohima, Feb 28: Nagaland Chief Minister Neiphiu Rio on Tuesday unveiled a deficit budget of Rs. 905.78 crore for the fiscal year 2024-25 during the ongoing fourth session, marking the second budget presentation for the 14th Nagaland Legislative Assembly.
The budget's gross receipts amounted to Rs. 23,978.05 crore, while gross expenditure stood at Rs. 23,727.88 crore. Despite improvements in receipts, the estimated closing accumulated deficit for the year 2024-25 is projected at Rs. 905.78 crore due to an anticipated negative balance of Rs. 19.83 crore from current year transactions.
In a notable move, the State Plan for 2024-25 has been increased from Rs. 820 crore to Rs. 1010 crores, reflecting a 23.17 percent rise. Additionally, the budget incorporates Demands for Grants State Matching Share to CSS amounting to Rs.125.80 crore, with an equal amount allocated to the common pool for need-based allocation.
Furthermore, projections for revenue growth in 2024-25 indicate a substantial reduction in non-tax revenue compared to the previous fiscal year, primarily due to lower expected receipts in Specific Revenue Expenditure (SRE) reimbursement.
While tax and non-tax revenues have shown a positive growth trend, they remain insufficient to cover the state's salary expenditure for 2-3 months. The State Government pledges to explore avenues for enhancing revenue through efficiency measures, leakage prevention, and the development of the oil and mineral sectors.
Despite efforts, the power sector continues to incur significant losses, with revenue collections estimated at Rs. 315 crore against a power purchase expenditure of Rs. 594.66 crore for the current fiscal year 2023-24, resulting in a loss of Rs. 279.66 crore.
Meanwhile, CM Neiphiu Rio, who also serves as the minister in-charge of Finance, introduced the Chief Minister’s Universal Life Insurance Scheme during the budget presentation on Tuesday.
The scheme, aimed at providing extensive coverage to the state's citizens, is set to ensure financial security for families by offering life insurance coverage of Rs 2 lakh in the unfortunate events of the breadwinner's demise, regardless of the cause.
In addition to the life insurance coverage, Rio announced an accidental insurance component, providing Rs 2 lakh coverage each for the breadwinner and three other family members. This coverage extends to both disability and death, with varying sums insured depending on the severity of the accident.
Beneficiaries of accidental death will receive Rs 2 lakh each, while those experiencing a total and irrecoverable loss of both eyes or loss of use of both hands or feet, will receive Rs 2 lakh. Similarly, for the total and irrecoverable loss of sight of one eye, or loss of use of one hand or foot, the coverage will amount to Rs 1 lakh.
The scheme aims to reach every household in Nagaland, with a provision of Rs. 15 crore allocated to cover the cost of premiums, facilitating its smooth implementation.
Rio also highlighted the success of the Chief Minister’s Health Insurance Scheme (CMHIS) and the APO PM-JAY, flagship schemes of the State Government launched earlier. These initiatives have significantly reduced out-of-pocket expenditures for patients, amounting to Rs. 82.29 crore for 35,833 beneficiaries, Rio said.
