Government of Mizoram
Budget Speech: 1994-95
By Pu Lalhmingthanga
Finance Minister
Mr. Speaker Sir,
May I with your permission, rise to present before
this august House the Revised Estimates for the current year, 1993-1994
and the Budget Estimates for the next year, 1994-1995?
2. This is the first Budget of the new Government
voted to power in the general election held in the State in November
last year. We convey our thanks to the people of Mizoram for their
affirmation of faith in the path of democracy, peace and progress
and also for their support and confidence reposed in us. We would
like to assure that our Ministry would do its utmost to fulfill the
commitments made to the people. We also thank our officials for the
smooth and peaceful conduct of the entire election process.
3. Another landmark which I would specially to make
mention is the Gospel Centenary being celebrated in the States this
year. January 11th is a red letter day in the annals of
Mizoram. It is on this day 1894 that the Missionaries landed in Mizoram
and started preaching the gospel. In fact, civilisation in ral sense
dawned on the people of Mizorma only with this even. Let us take this
opportunity to pay tributes from the deepest core of our hearts to
those holy souls who ventured at great risk to undertake this noble
task. Let us also solemnly undertake to work with dedication and zeal
to ensure a clean and efficient administration devoted to the well-being
of the poor and downtrodden masses in keeping with the true spirit
of the Gospel.
4. As you know, sir, our economy and the budget are
heavily dependent on the general health of the economy of the country.
Is am glad that there has been marked turn-around in the economic
conditions of the country through a move away from regulation and
control and towards the strengthening of competition and efficiency.
The external payment crisis has been overcome and the foreign exchange
reserves have been rebuilt. Inflation has fallen to a single digit
and the economy has begun the recover. There is also progress in removing
obstacles to long term growth through de regular of industry, liberalisation
of trade and foreign investment and financial sector reforms. The
country is moving fast on the part of fiscal consolidation. In order
to reap full benefits flowing therefore, it incumbent upon us to contribute
our humble mite to strengthen those trends. This might involve some
sacrifices on our part. I would, therefore, implore the honourable
members of this august House and the people of Mizoram to be ready
for the same in the long term interest of the State.
PLAN EFFORT
5. Before I go further, I would like to give some
backround of our Plan efforts. Our Eight Plan (1992-1997) involved
an outlay of Rs. 763 crore. The Plan efforts in the first two years
(1992-1994) accounted for about 46 percent of the five-year targetted
outlay. For the third i.e. the next year (1994-1995), an outlay of
rs. 207.66 crores has been approved by the Planning Commission, representing
a step up of 12.2 percent over the current year. The broad sectoral
allocation of this outlay is as under:
(Rs.
Crore)
1.
Agricultural and allied activities 24.02
2.
Rural Development
35.81
3.
Irrigation and flood control
2.88
4.
Energy
39.49
5.
Industry and Minerals
9.70
6.
Transport and Communication 23.92
7.
District Councils
9.95
8.
Education and allied activities 12.31
9.
Medical & Public Health
7.20
10.
Water Supply and Sanitation
12.70
11.
Urban Development
(incl.
Capital Project) 14.74
12.
Other minor sector
14.94
TOTAL
:
207.66
6. The Planning Commission has been kind enough to
extend to us assistance to cover the Plan outlay in 1994-1995 almost
fully. You will be glad to know that for the first time, and assistance
of Rs. 10 crore has been earmarked for externally aided projects.
We have to identify the areas/schemes against this provision. Another
Rs. 10 crore has been approved for the Capital Project. With this,
construction of Assembly building, additional Secretariat Building
and a few Directorate buildings will be taken up vigorously during
1994-1995.
7. In our Plan for the next year, Agriculture and
allied sectors are given top-most priority with the objective of moving
towards self-sufficiency in food production and providing permanent
settlements to the ‘Jhumia’ families. The Power sector has been given
a big boost with a Power Sector has been given a big boost with a
provision of Rs. 39.49 crore accounting for about one-fifth of the
total outlay. This is with a view to accelerating the tempo of the
projects in hand including Serlui ‘B’ Hydel Project for which a provision
of rs. 17 crores has been earmerked. Communications also occupy an
important place with an outlay of Rs. 23.92 crore. Social Servies
Sector such as Water Supply and Sanitation and Education are given
high priority with outlays of Rs. 12.70 crore and Rs. 12.31 crore
respectively. In regard to elementary education, the aim is to achieve
100 percent literacy and improve school buildings. It is heartening
to note that over 70 percent of the Annual Plan provision is proposed
to be utilised for rural upliftment and family-oriented schemes.
8. A booklet highlighting the performance in 1993-1994
and the programmes for 1994-1995 of various Departments has been circulated
separately with the Budget documents to all the honourable members.
However, I may briefly recount some of the important achievement and
programmes of the Government.
9. The two Departments which occupy prime place are
Rural Development and Power & Electricity. These two Departments
have made significant strides. The most important programme of the
Rural Development department relates to the New Land Use Policy (NLUP)
designed to wean away people from ‘Jhumming’ and provide them permanent
settlement. Sizable provisions of Rs. 27.70 crore in 1993-1994 and
Rs. 28.30 crore in 1994-1995 have been set apart for the implementation
of this Policy. In 1993-1994, the provisions was utilised for maintaining
21,853 families under 6 Blocks and for covering 6,225 new families
in Serchhip and Lungdar ‘E’ As for 1994-1995, 15,000 more families
are proposed to be covered in Lunglei and parts of Lungdar, Khawzalw
and Tlangnuam Blocks.
10. Coming to the Power Sector, emphsis is being
laid on the accelaration of the tempo of projects in hand. The Maicham
Mini Hydel Project and the two NEC sponsored projects at Ramri Lui
and Vawra Lui are expected to be commissioned in 1994-1995. the Serlui
‘B’ Hydel Project, the preliminary work on which is progress, is slated
for commissioned in 1994-1995. the Serlui Hydel Project, the priliminary
work on which is in progress, is slated for comissioning in 1997-1998.
apart form the Mini Hydel Projects at Tuipang Lui an Teirei the work
on which has already been taken up, two more Mini Hydel Projects at
Ku-Tlabung and Tuiphal will be taken up next year. Simultaneously,
the 60MW Tuirial Hydel Project, 210-MW Tuivai Hydel Project (popularly
known as Bairabi Hydel Project) to be taken up as early as possible
as a central Sector Project. As regards transmission, apart from the
Zemabawk-West Phaileng and Serchhip- ‘E’ Lungdar 132 KV lines likely
to be commissioned shortly, the construction of three more 132 KV
lines connecting Marpara, Lungsen and Lawngtlai is also expected to
be completed next year. Under the Power Sector, Rural electrification
remains and important programme. As many as 50 additional villages
are expected to be electrifiction in 1993-1994. with this, 88 percent
of the villages would get covered by this programmes.
11. In Agriculrture, emphasis is being liad on mechanisation
through distribution of tractors and poser tillers to the farmers
on subsidy on bringing more potential flat land under cultivation.
About 3,000 hectares of such land is expected to be covered in two
years 1993-1995. I may make mention also of the proposal to set up
a Veterinary College at Aizawl. The co-operation organisation is being
strengthened. A land Development Bank has been set up to strengthen
credit structure.
12. As regards industry, private enterpreneurs are
being encouraged through the proviion of subsidies and other infrastructural
facilities at the Zuangtui Industrial Estate. In 1993-1994, the central
transport subsidy was provided to 40 enterpreneurs. Special mention
may be made to the priority being accorded to the development of tea
processingindustry. The Government’s efforts in the direction of tappong
the State’s latent natural resources have borne fruit. The Geology
and Mining wing has identified the exploitable deposits of shell Limestone
of Muthi area, suitable for production of glazed slabs. In the field
of sericulture, efforts are being made to encourage the private sector
in the matter of mulberry plantation and cocoon production on a mass
scale through provision of grants-in-aid and other facilities including
training.
13. Needles to say that lack of communicaitonshas
proved a serous bottlenect in the way of development in Mizoram. The
government is earnestly addressing itself to over-come this handicap
as early as possible. In this connection, I would make special mention
of the following schemes under process, namely, (i) the construction
of airport at Lengpui (2) better State Highway connections between
Mizoram and neighbouring States of Manipur and Tripura, and (3) the
improvement of Railways between Lala Bazar and Bairabi. Further, the
State Transport fleet is also being augmented. The Department, special
mention may be made of the inauguration of the new Mizoram Houses
at Guwahati and Salt Lake, Calcutta. It is a matter of satisfaction
that the Aircraft Refuelling Station at Tuirial became operational
last month.
14. The Social Services Sector also recorded significant
progress. In 1993-1994, 87 aided Middle Schools and 62 High Schools
were provincialised. As many as 45 private Middle Schools are proposed
to be covered by the system in 1994-1995. coming to Arts & Culture,
the Department organised cultural shows within and outside the State
on several occasions, apart from imparting training in both traditionaly
and modern dance and music. As regards sports, a special mention may
be made of the success of our participants in the Third National Games
held at Pune in January last. They brought glory to the State by gagging
one gold, three silver and one bronze medals in archery. Tow players
were also sent to participate in the second World Wushu championship,
1993 at Kualalumpur. Malaysia. Besides, the Department constructed
10 indoor stadia. It also hosted the Ninth National Sub-Junior Boxing
championship at Aizawl. As manu as 19 states participated in it.
15. The Health Department which established one Community
Health Centre, four Primary Health Centres and 12 Sub-Centres in 1993-1994
proposed to add two more Community Health Centres and four Primary
Health Centres next year. The expansion of the Civial Hospital at
Lunglei into a 200 bedded capacity and improvement of Civil Hospital
at Aizawl are being taken up. The work for the establishment of a
Maternity Hospital at Luangmual and a 40 bedded Hospital at Kulikawn
would continue.
16. In Mizoram, Water Supply Schemes are very vital.
During 1993-1994, the rural water supply schemes were augmented in
40 villages under the State Plan. An equal number is proposed to be
covered next year. Vigorous efforts are being made to complete the
Greater Lunglei Water Supply Scheme. Next year, the execution of phase
II of the Greater Aizawl Water Supply Schemes and of those at Serchhip,
Kolasib and Saiha will be taken up.
17. Under Rural Housing Scheme, 1064 poor families
were provided assistance of Rs. 2500/- each. In 1994-1995, such assistance
will be provided to 1280 more families. As regards the Informaions
& Public Relations Department, it continued the installation of
community viewiing and listening sets in more and more rural areas.
The Auditorium- cum-Conference Hall at Aizawl started in 1991 is expected
to be completed next year. The Department proposed to produce this
year, a film on the Gospel Centenary.
18. Coming to Social Welfare, the Department continued
the work in the fields of Child and Women Welfare and also for the
rehabilitation of handicapped. Besises, old-age pension at Rs. 100/-
per month was paid to 2291 persons. The maintenance of Remand Homes
and De-addiction-cum-Rehabilitation Centres continued to engaged the
attention of the Department.
19. As regards the Revenue Department, a cadastral
survey for purposes of preparation of records of right is in progress
in the State. The Department expects to achieve the target of 2900
hectares in 1994-1995. The target of 3800 fixed under the House Site
Plan is also expected to be achieved. The Accounts & Treasuries
Department completed the General Provident Fund Account of Government
employees for the year 1992-1993. A new Sub-Treasury was also opened
at Mamit this year.
20. Sir, as you know, the three Autonomous District
Councils are being entrusted with more powers. Now, they will have
sole authority to deal with the subjects assigned to them without
State Government’s interference. In order to enable them to do so,
more funds are being allotted to them. In 1994-1995, the budgetary
allocations are Rs. 9.95 core on Plan account and Rs. 8.14 crore on
Non-Plan account as compared to Rs. 7.06 core and Rs. 4.26 crore respectively
in the current year.
21. The last, but not the least, I may say a work
about the Home Department. It is a matter of great satisfaction that
the law and ordr situation in the State continued to be peaceful.
As a result of several rounds of talks with HPC a stage has been set
for a settlement leading to the formation of Singlung Hill Development
Council. With raising of three more companies in 1993-1994, the 3rd
MAP Batallion will come to be established in a full-fledged form.
The recruitment process for the India Reserve for which the Govt.
of India has sanctioned Rs. 6.37 crore is also complete. Besides,
a detailed scheme has beenprepared for the construction of 1222 units
of accommodation over the three years 1994 – 1997 under Police Housing.
The Excise Department in collaboration with the Police Department,
is making vigorous efforts at combating illicit drug-trafficking and
its abuse. Efforts are also being made for checking illegal brewing
and selling of liqour. As a result of these efforts, 1.722 kg. Of
heroin 2.50 Kg of opium and 64 Kg of Ganja were sized, apart from
other drugs, during the current year. As may as 84 drug traffikers
were also nabbed.
TENTH FINANCE COMMISSION:
22. Sir, The budget speech last year of my worthy
predecessor made a mention of the appointment of Tenth Finance commission
under the Chairmanship of shri K.C. Pant. We submitted a Memorandum
to the Commission giving our views on its terms of reference and also
a forecast of our revenue receipts and disbursements over the five
years 1995-2000, the period to be covered by the recommendations of
the Commission. Besides, we submitted another Memorandum incorporation
and a stock of subsidiary information on various aspects of the State’s
economy.
23. In our forecast, we have projected our requirements
of assistance at Rs. 2036 crore for the five year period 1995-2000.
This is about double of what was recommended by the Ninth Finance
Commission for the proceeding quinquinium. Our proposals for upgradation
and modrnisation add upto another Rs. 303 crore. As regards our memorandum
on terms of reference, we have pleaded that the Commission should
seriously address itself to the widening of inter-state disparities
in the matter of public services and accord predominant role to redistributive
justice in the scheme of devolution of funds to States. In this context,
we also urged the Commission to treat the Special Category States
as a distinct class. It was emphasized that even amongst the Special
Category States, Mizoram, on account of its peculiar features and
historical backlog, should be accorded preferential treatment.
24. Sir, I am glad to inform this House of the historic
visit of the Commission last month to have the first hand account
of our problems. We had very detailed an useful discussions with them,
We hope that the Commission has appreciated our case and would do
justice to us. Needles to say that its recommendations would be of
vital importance to the State Government.
U.T. PERIOD LOANS:
25. A word may be said at this stage about the U.T.
Period Loans. A sizeable amount of these loans had been writing off
by the Ninth Finance Commission. However, these loans to the extent
of Rs. 50.62 crore remain outstanding against us. We have been pleading
with the Government of India that this outstanding amount of loans
also should be written off entirely, I am glad to inform you that
thanks to the Union Finance Minister, Dr. Man Mohan Singh, who visited
Aizawl in May last year that the write off of these loans has been
agreed to by the Union Government in principle. The modalities for
giving effect to the same are expected to be completed soon.
REVISED ESTIMATES FOR 1993-1994
26. According to the Reserve Bank account, the year
1993-1994 opened with a deficit of rs. 30.33 crore. This was about
one and half times of what was envisaged earlier. The Government of
India was approached to help us in the matter. I may express my gratitude
to them to have agreed to cover this deficit through the release of
advance Central assistance in the current year. However, inspite of
our best efforts, the deficit at the close of the year is again likely
to be Rs. 31.58 crore.
27. The main factors responsible for this deterioration
include provisions made for raising of three companies of the third
MAP Battallion, Provincialisation of School and restoration of damages
caused by natural calamities, like landslides and heavy monsoons,
I am sorry to say that the government of India dik not help in the
matter except through advance realese of our share of the Calamity
Relief Fund. The sanction to tow installments of dearness allowance
to employees effective from 1.1.93 and 1.7.93 and the heavy expenditure
on the recent Legislative Assembly elections and high rate of price
escalations also added to the deficit. I must thank our employees
for the sacrifice made through impounding of additional dearness allowance
arrears amounting to over rupees two and half crore.
BUDGET ESTIMATES FOR 1994-1995
28. The Budget for the nest year is framed under
the shadow cast by the huge deficit of Rs. 31.58 crore being inherited
from the current year. If felt seriously concerned about this and
did my best, while framing the Budget, to reverse the trend.
29. The budget Estimates place the revenue receipts
at Rs. 458. 39 cores and revenue expenditures Rs. 398.26 crore showing
a surplus of Rs. 60.12 crore on Revenue Account. This surplus is from
the Plan account resulting from the favourable dispenstion of Plan
assistance being 90 being 90 percent in the from of grants-in –aid.
There is surplus of Rs. 6.96 crore on Public Account also. These surpluses
came handy to meet, to a large extent, the huge deficit of Rs. 71.32
crore on the Capital Account. This will only go to add to the opening
deficit, if deficit, if efforts were not made to raise additional
resources and cut down expenditures.
30. For funding the State Plan and the Budget for
1994-1995, the Government is required to make a massive effort at
resource mobilisation. It has undertaken to raise Rs. 10 crore by
wayof market borrowings and Rs. 8.71 crore as negotiated loans from
Central financial institutions like LIC, HUDCO, Infrastructures Leasing
and financial servies Ltd., etc. We have also undertaken with the
Planning Commission to raise additional resources of Rs. 10 core in
1994-1995. though efforts would be made to augment tax and non-tax
revenues, let me say that in our context the expenditure control expecially
that on establishment has to play vital role. Every rupee saved is
an addition to our resources required for the upliftment of the fate
of the common man waiting haplessly at the end of the queue. Much
in this direction is possible through improvement in efficiency an
productivity. It also required identification of areas of redundant
and wasteful expenditures and overlapping activities and doing away
with these expentiously. We have issued a package of economy instructions.
One important aspect of these which I would like to highlight is the
decision to reduce by 25 percent the Budget provisions for 1994-1995
in respect oupkeep, repairs and maintenance of vehicles, travelling
and office expenses including Medical re-inbursements, etc, But, I
know these are not enough. Much more is the need of the hour. The
Government would come forward with more stringent measures during
the course of the year. To the extent we succeed in this direction,
our efforts at fiscal correction will be further strengthened. This
warrants considerable discipline on the part of all those involved
in the process. I appeal for full and unstinted cooperation in this
difficult task from all sections of the community, especially those
entrusted with the running of administration.
31. Mr. Speaker Sir, I would like to express our
heart-felt gratitude to the Govt. of India, Ministry of Finance and
Planning Commission in particular, for their generous financial help
to Mizoram since the inception of Union Territory i.e. 1972 and till
the present day. This help enabled us to ensure gradual upliftment
of the people of Mizoram. I hope that this generosity will be continued
by the Govt. of India in future as well. However, as the saying goes
that even God helps only those who help themselves, it is incumbent
upon us that we should also do our utmost to raise resources. In this
connection, I would like to appeal to all sections of the people of
Mizoram and especially those who are directly concerned with the spending
to ensure frugal and judicious use of every rupee spent.
32. Before concluding my speech, I would like to
express my sincere thanks to the officers and staff of all the Department,
especially the Finance Department and the Government Press, whose
dedication and hard work has enabled me to present the Budget in time.
33. Mr. Speaker, Sir, I thank you and all the Members
of the House for giving me patient hearing and attention. I sincerely
appeal for their support and cooperation in carrying out my difficult
task. With these remarks, I commend the Supplementary Demands for
1993-1994 and the Budget Estimates for 1994-4995 for consideration
and approval of this august House.
Thank you, Sir.
