On February 13, 2020, Nagaland Chief Minister Neiphiu Rio, who also holds the charge of the finance portfolio, presented a state budget of Rs. 21049.87 crore for fiscal 2020-21.
- The state’s total Receipt Budget for the year 2020-21 was estimated at Rs 20826.02 crore.
- The negative opening balance of Rs 2234.85 crore, FY21 is estimated to close with a negative balance of Rs 2358.81 Crore.
Key Points:
-Out of the total receipt budget of Rs 20826.02 Cr, State’s Own tax and non-tax revenue amount to Rs 1283.36 Cr; state’s share in Central taxes at Rs 4493.37 Cr; Central Assistance (grants and loans) at Rs 8871.15 Cr; Internal Debt (including WMA from RBI) at Rs 6176.64 Cr; and recovery of loans and advances by state government at Rs 1.50 Cr.
-Out of the total expenditure budget of Rs 21049.87 Cr, the non-development expenditure (excluding servicing of debt) stands at Rs 8715.30 Cr; Servicing of debt (including repayment of WMA) at Rs 6241.42 Cr; and development expenditure (including CSS etc) at Rs 6093.15 Cr.
-To enhance efficiency and transparency to increase the revenue, the govt proposed new taxes viz.
- Levy a one-time tax of 3% of the original cost of the vehicle for the first 10 years on heavy machinery and non-transport vehicles and equipments purchased within the State as well as brought into the State for commercial activities.
- For the next five (5)years the rate of tax shall be reduced to 1.5%. Those declared to be for exclusively personal use and agricultural tractors are exempted.
–Increase of rates: Rates in the petroleum sector are enhanced.
- Duty on petroleum products is being enhanced from 10% for diesel to 14.5% and from 20.38% for petrol and other motor spirit to 25%.
- Road Maintenance Cess on petroleum products is being raised from Rs. 1.50 paise per litre to Rs. 2 per litre.
About Nagaland:
Capital– Kohima
State Bird– Blyth’s tragopan
State Flower– Rhododendron arboretum
