Meghalaya CM presents tax-free deficit Budget

Shillong: Meghalaya Chief Minister Conrad K Sangma on Wednesday presented a deficit budget for the financial year 2021-22 without proposing any new tax. It is estimated that the total receipts will be Rs 17,509 crore including borrowings to the tune of Rs 2,247 crore, said Sangma who also holds the finance portfolio.

The total expenditure is expected to be Rs 17,603 crore which included repayment of loans of Rs 771 crore, interest payment of Rs 1,047 crore and pension payment of Rs 1,303 crore. Though the amount of tax transfers from the Centre has been reduced owing to the economic impact of the COVID-19 pandemic, the chief minister said that the government has prudently managed the state finances and has ensured availability of resources to all critical sectors.

"The budget estimates were Rs 5,999 crore, while the revised estimates were Rs 4,207 crore, a shortfall of Rs 1,792 crore," he said.

The chief minister informed the assembly that the 15th Finance Commission has submitted its final report to the Government of India and recommended Rs 39,012 crore for the state for the 2021-26 period.

"For 2021-22, the share of central taxes is estimated at Rs 5,105 crore and the revenue gap grant is Rs 1,279 crore," he said.

Excise taxes and tax from auction of 32 lakh metric ton of extracted coal are expected to fetch Rs 350 crore each but non-tax revenue collection is expected to be Rs 374 crore, a reduction of about 29 per cent from last year.