Deficit budget for Nagaland, VAT rates hiked Kohima, Mar 24 (PTI) Proposing a minor upward revision of rates in existing value added taxes (VAT) to augment internal revenue, Nagaland Chief Minister Neiphiu today tabled the budget for the next fiscal projecting the deficit at Rs 602 crore. Rio, who also holds finance portfolio, proposed increase in the VAT in almost all categories of taxable goods to garner an additional revenue of Rs 15 crore during 2011-12.
Under the revised VAT regime, the rate has been raised from 4 to 4.75 per cent on certain category of items while it has been hiked from 12 to 13.25 per cent on other category of taxable items.The chief minister also proposed application and processing fees on purchase of guns and renewal of licenses with an aim to discourage firearm purchase by the Nagas.
Although the budget estimated the current negative balance at Rs 86 lakh, the accumulated deficit for next fiscal was projected at Rs 602.30 crore.The chief minister informed the house that since the state annual plan size was not finalised, he estimated the plan outlay at 10 per cent hike over the current year as suggested by the Planning Commission.
He estimated the plan size for next fiscal at Rs 1,650 crore against the current level of Rs 1,500 crore, and informed the house that the detail work plans for 2011-12 would be tabled as early as possible after Planning Commission finalised the state?s plan outlay.
Rio also said the state witnessed 15 per cent increase in internal resource mobilization over past five years and targeted garnering Rs 442 crore in the coming year from various sources within the state.
The chief minister informed the house that the special plan assistance of Rs 5,400 crore for the special category states announced in the union budget would increase inflow of central fund to Nagaland during the coming year.