Government of Mizoram
Budget Speech: 1999-2000
By Pu Zoramthanga, Chief Minister
In-charge of Finance
Mr. Speaker Sir,
May I with your permission, rise to present before
this august House the Supplementary Demands for the year 1998-99 and
the Budget Estimates for 1999-2000.
2. First of all, I am happy to say that this is the
first budget of the new Government voted to power by the people of
Mizoram in the General Election of the State held in November, 1998.
I convey my thank to the people of Mizoram who have reposed their
full confidence and trust upon the new Ministry to give them a clean
and efficient Government and also to lead them to new economic activities
so as to enable them to stand on their own feet. To fulfil this aspiration,
the Government is gearing up itself to take all necessary measures.
I also thank the Government officials for the smooth and peaceful
conduct of the entire election process.
3. The Budget Estimates for the year 1999-2000 I
am now presenting is interim in nature. Hon’ble Members of this august
House are well aware that the State own resource is quite meager and
is hardly 10% of the total receipt and as such we are heavily dependant
on devolution of funds from the Central Government for both Plan and
Non-Plan expenditure. The size of the Annual Plan for the State of
Mizoram for 1999-2000 and the quantum of Central Assistance in support
of the plan allocation are yet to be finalized by the Central Government.
In view of this, the size of the Annual Plan in maintained at the
level of 1998-1999 as asdvised by the Planning Commission. Therefore,
pending final allocation of the Annual Plan for 1999-2000, I am to
seek "Vote on Account" for the first four months of 1999-2000.
As you are all aware, the State of Mizoram has been passing through
precarious financial situation. The first task of my Ministry is,
therefore, to look into the financial problems and at the same time
to find means of solving the issue. But the resources base of the
State being very limited, the only immediate alternative option is
to approach the Central Government for relieving our hardship. The
Central Government leaders are very considerate to us and they fully
appreciate the financial problem being faced by this Government. Accordingly,
a Committee of group of officers has been set up by the Ministry of
Finance, Govt. of India through our efforts, to make recommendation
for resolving the financial crisis being faced by the Govt. of Mizoram.
We are looking forward to the favourable recommendation of the Committee
and positive decision of the Govt. of India.
4. Further, pending final outcome of the decision
of Central Government on our request for looking into our financial
problem, I am happy to inform this august House that the efforts made
by us for additional financial assistance have, as an interim measure,
resulted in securing Rs. 10.00 crores additional loan from Life Insurance
Corporation of India for construction of houses for Govt. servants
and public, Rs. 8.14 crores under Basic Minimum Services, Rs. 1.86
crores for construction of Indo Myanmar Border Road. We also pressed
hared to get waiver to the special Ways & Means Advance of Rs.
50.00 crores given to us by the Central Government to temporarily
tide over our present financial problem.
5. I am very happy to say that Lengpui Airport was
inaugurated by Hon’ble Union Home Minster Pu L.K. Advani on 12.12.1998
after test landing on 1st September, 1998. The length of
the runway is 2500 metres, which is one of the best Airports in the
North Eastern Region. I hope this will immensely help the State in
achieving all round development.
6. I would like to inform the honourable members
of this Housee that Central Government has already set up Eleventh
Finance Commission under the Chairmanship of Prof. A.M. Khusro. The
required informations of the Commissions are being furnished by the
Finance Department. The recommendation of this Commission will determine
the system of devolution of fund from the Central Government and the
quantum of assistance for the 5(five) years to come i.e. 2000-2001
to 2004-2005. all honourable members of the House are hereby apprised
to apply their deepest thoughts to contribute points for presentation
to the Commission which is visiting the State very shortly.
7. I had mentioned in the foregoing para about the
financial situation of the State. As we are facing such a situation,
the State Government was compelled to insist various Departments to
surrender 20% of their Non-Plan non salary provision. At the same
time drastic reduction has also been exercised under Annual Plan allocation.
These actions are only the beginning of measures necessary to be taken
to solve the financial problem of the State. Everyone of us is fully
aware of the limitation of our resource base. Attempts made in the
post for reintroduction of Sales Tax to raise additional resource
ended with negative result due to certain technical problems. Therefore,
drastic reduction of fund allocation under Non-Plan and Plan is the
only immediate solution of our financial problem as the Non-Plan expenditure
is much more than our Non-Plan receipt.
8. As you are aware, this Ministry was installed
at a time when the State Government was reeling under heavy debt burden.
Our fist task is, therefore, to take immediate steps just to survive
financially while the people are expecting enormous positive change
in the process of development. The Government desires to practice
"Zero based budgeting" It may not be possible to immediately
introduce this Zero based budgeting, however, departmental activities
will be closely screened to eliminate non-productive and non remunerative
ones as far as practicable. I am confident that his august House will
support this idea and thus I hope that the State will be able to move
in a new direction towards prioritized developmental activities.
9. Mizoram has become one of the most peaceful States
in the Country, and as such there is ample scope at the moment for
infrastructure development activities in the State. The Central authorities,
therefore, have been requested to give additional Central support
for clearing the heavy liabilities to enable us to start developmental
activities with a clean slate and to allocate more funds with a special
dispensation for taking up more developmental projects. In our Plan
for next year, agriculture, horticulture and allied sectors will be
given top most priority with a view to moving towards by income earning
activities, generation of more power & electricity and social
reforms. To supplement the normal annual plan funds, more effort will
be made to avail maximum possible funds form various Central Ministries
for taken up more Centrally Sponsored Schemes and Externally Aided
Projects.
10. Further, I may apprise this august House that
the Central Government and some other States have already implemented
revised pay scales for their employees. The initiative taken by the
previous Ministry for implementation of Central Fifth Pay Commission
for the employees of the State Government of Mizoram could not be
finalized till now. A Committee to look into this matter is yet to
submit its reports and recommendations. As already stated by me, the
financial position of the State is so critical that we have approached
the Central Government for additional allocation of funds for this
purpose and the outcome of their decision is awaited. For immediate
relief to the State Government employees in their financial hardships,
impounding of D.A. and I.R. into their G.P.F. accounts have been discontinued
and additional Dearness Allowance upto 22% of their basic pay has
been released.
11. I may now give a very brief highlight of the
performance and tentative programmes of some Departments. Tentative
programmes are subject to change after finalisation of the Annual
Plan size for 1999-2000.
(i) Agriculture: Five Minor Irrigation
Projects with a command area of 316 hectares have been completed thereby
raising a total number of functioning projects to fifty five numbers
with a total command area of 2245 hectares. For the purpose of mechanization
of Farms, Ten Tractors and Twenty two Power Tillers were distributed
to the farmers on subsidy. The Department has also increased Wet Rice
Cultivation (WRC) area by 430 hectares during 1998-1999. With Contour
Trench Farming System, about 5,294 families have been benefited for
permanent cultivation with double cropping. For gearing up towards
optimum agricultural produce, 480 MT fertilizers were distributed
on subsidy to the farmers. Plan Protection measures were taken up
against crop pests. With the impending occurrence of Mautam in 2007
A.D., Rodent Control Committees has been formed and 75000 numbers
of rat tails have been purchased so far at the rate of Re.1/- per
rat tails. This has been done to encourage killing of rats pests.
Also baited poison of higher efficiency are distributed free of cost
on demand.
During 1999-2000, the area of WRC proposed to be
developed is 5,000 hectares. At least fifteen new Minor Irrigation
Projects with a command area of about 185 hectares will be taken up
and ongoing Twelve projects will also be continued. For mechanization
of private farms, more machineries of different type are proposed
to be distributed on subsidy.
(ii) Horticulture: Under Area expansion
on fruits, vegetables, spices, floriculture and plantation scheme,
200 hectares have been achieved and another 30 hectares is expected
shortly under Banana cultivation. Various planting materials, equipments,
fertilizer of different kinds and seeds have also been distributed
at a subsidy of 50%. For faster development of the Horticulture in
the State, the department is being expanded by creating one Division,
Six Sub-Divisions and twelve Circles. During 1999-2000, more emphasis
will be given on development of Horticulture production in the State
and in addition to the existing schemes, cultivation and production
of revenue earning crops such as passion fruits, oranges, banana,
pine-apple, hatkora, tung, black pepper, bird-eye chilli will be pursued
in larger scale. It is also proposed to introduce kiwi and avacado
fruits plantation which are expected to be thriving well in Mizoram
for large scale production. Importance will also be given to Agriculture/Horticulture
link roads.
During 1999-2000, the department envisage to lay
more emphasis on development of Horticulture products to alleviate
the economic condition of the State.
(iii) Fishery: There are 4700 fish
farmers in Mizoram who are given fish seeds at 50% subsidized rate
and also fish seeds were realized in the rivers to enhance fish population.
During 1999-2000, apart from maintaining the existing five fish seeds
farms, two more new fish seeds farm swill be constructed and the water
areas for fish culture will also be increased. For fish marketing,
it is proposed to complete two cold storage and ice plant, refrigerated
van will be purchase. Construction of local fish selling booth at
Aizawl and Kolasib will also be taken up. Technical and financial
assistance is proposed to be extended to the fish farmers. For further
development of riverine fish seedlings, it is proposed to release
quality fish seeds in thirteen major rivers in the State. More training
will bee imparted to fish farmers and it is also proposed to send
trainees for technical fishery course.
(iv) Power & Electricity: The Significant
achievement during the current year is the commissioning of 12.50
MVA sub-station at Luangmual which increased our receiving capacity,
and also commissioning of 1.5 MW Diesel Power Station at Champhai.
Three villages and five villages have been electrified by conventional
and non-conventional sources of energy respectively, as much as 433
solar lanterns have also been distributed as subsidized rate during
the current year. Further, augmentation of Luangmual 132 KV sub-station
by another 12.5 MVA is expected to be commissioned during the next
financial year. Three Mini Hydel Projects of Teirei (3MW) , Tuipanglui
(3MW) and Kau Tlabung (3MW) are expected to be commissioned shortly.
Amongst a number of projects in the pipe-line, priority will be given
to the construction of Thermal Power Plan (20MW) at Bairabi and Serlui
‘B’ Hydel Electric Project (9MW). Schemes for implementation of Tuivai
Hydro Electric Project (210 MW) , Kolodyne Phase I (100 MW) will be
vigorously pursued. As regards Bairabi Project, the Brahmaputra Board
is updating the project report which is expected to be finalized during
this year.
(v) Industries: The Department has
put its efforts in development of tea gardens and raising of Toklai
approved varieties of tea seedlings and plantations have been concentrated
around Biate village. The growers are assisted with tools, implements
and chemicals. The department is also striving to educate the educated
youth in the field of electronics and computers by way of conducting
awareness campaigns and seminars.
Vertical Industrial building capable of accommodating
fifty non polluting cottage Industrial units have been constructed
and the rooms are almost ready to be rented out.
During 1999-2000 the department is intending to concentrate
on development of electronics, computers, tea industry and Industrial
Growth Centre at Luangmual.
(vi) Social Welfare: The construction
of 300 bedded De-addition-cum-rehabilitation-centre at Sethawn has
been completed and now become functional. Being fully aware of the
enormous problem of drugs abuse and addiction to alcohol amongst a
large section of the youth in Mizoram, we are in the process of taking
measures to find a solution. A very high priority is therefore, accorded
to the programme for prevention of this social menace as it is not
posing a threat not only to the process of our endeavour for human
resources development but is also a stumbling block to the economic
growth of the State. All out efforts will thus be taken to solve this
serious problem within the shortest possible time. As many as 5416
old aged persons have been given financial assistance at the rate
of Rs. 100/- per month. Women Commission has been set up for the Welfare
and Safeguard of women with legal entity.
(vii) Excise: For better implementation
of mizoram Total Prohibition Act, officers and staf have been posted
at Champhai, Serchhip, Kolasib and Vairengte. In order to check the
trafficking and abuse of drugs, the department propose to legislate
new laws for the effective prevention of illegal possession, sale,
use and consumption of various kinds of intoxicating drugs and also
for making drug addiction an offcence.
(viii) Police: The level of satisfaction
on accommodation for Police personnel in Mizoram is one of the lowest
in the country. During 1998-1999, the department constructed seven
type IV quarters, one Type III quarter and Four two storeyed Barracks.
In 1999-2000, thirty numbers of type-II and III quarters will be constructed
in all the new District Headquarters. Besides, the department also
propose to construct Reserve line at Mualpui and quarter Guards/Magazine
at Aizawl.
(ix) Public Health Engineering: During
the current financial year under Rural Water Supply Scheme, forty
nine habitations have been provided with Water Supply. Under Urban
Water Supply Scheme, Zawlnuam Water Supply Scheme and Greater Kolasib
Water Supply Scheme have already been commissioned and Greater Water
Supply Scheme of Saiha is expected to be commissioned shortly. The
Integrated Project of Aizawl comprising various schemes like Greater
Aizawl Water Supply Scheme Phasee-II, Aizawl Sewerage Scheme Phase-I,
Aizawl Storm Drainage Scheme Phase-I, Aizawl Solid Waster Management
Scheme (feasibility), Water Quality Monitoring and Public Health Education
at the estimated cost of Rs. 176.55 crores designed for a population
of 2,25,000 is being taken up. Cost of this project will, however,
be shared at the ration of 75:25 between the Central Government and
the State Government.
(x) Public works Department: The Government
has approached World Bank for funding upgradation of the existing
rural roads and for taking up new projects for road communication
in the State. For this purpose, the Government of Mizoram had already
signed contract with Inter-Continental Consultants and Technocrats
Lts., for strategic option study and the study is in progress and
the report is awaited.
(xi) Forest: The new concept of Joint
Forest Management has taken roots in Mizoram by involving the public
in the management of Forest. It is proposed to created 4300 hectares
plantations under this concept in 1999-2000. It is also proposed to
take up teak thinning in older plantations in the States. This will
fetch certain amount of revenue.
(xii) Health & Family Welfare:
During 1998-1999, 30 bedded Hospital each at Sakawrdai and Saitual
will bee completed and five Primary Health Centre building are also
expected to be completed. The Cobalt Therapy Unit for cancer treatment
has been functioning properly now. Reproductive and Child Health project
have been implemented under World Bank assistance and Rs. 17.31 crores
have been sanctioned for the 9th plan period. Central Government
as already released the first instalment of Rs. 4.00 crores for State’s
Referral Hospital under Central Non-lapsable pool fund.
During 1999-2000, the department will continue the
ongoing works and the department intends to improve supply of patients
diet, purchase & supplies of essential drugs and equipments to
all the health institutions.
(xiii) Rural Development: The main
thrust of this department in the past was New Land Use Policy Programme
(NLUP). However, a need has now been felt that the department should
be appropriately restructured and review of the NLUP programme be
made so as to better utilize the funds and manpower more effectively
towards attainmwent of rapid economic development in the State of
Mizoram. Besides the normal NLUP Programme, a new scheme called Special
Development Scheme has been evolved to assist urban poor families
at Aizawl and Lunglei towns. Under National Programme of improved
Chulhas, a number of rural poor families have been benefited. The
department sold portable Chulhas at 25% of the unit cost during 1998-1999.
This programme will be continued. This department is one of the implementing
agencies of the Border Area Development Programme (BADP) and is also
functioning as a Nodal department for BADP in the State.
(xiv) Soil & Water Conservaiton:
This department has given more stress on the production of seeds and
seedlings. Twenty six new nurseries of cash crop were raised by the
department for coffee, rubber, arecanut and large cardamom. Sixteen
Quintals of coffee seeds were sold and also distributed to the interested
families and also 248 coffee planters were given cash assistance at
the rate of Rs. 5000/- per hectare shared between Coffee Board and
the State Government at the ratio of 80:20. This has greatly encouraged
the Coffee planters and the scheme will be continued during next year.
Also.
(xv) A.H. & Vety During 1998-1999,
7000 dozes of Artificial Insemination has been performed to the cattle,
also new technology of artificial insemination for pigs has been introduced
and 150 units of biogas plants are being installed. Production of
living 1999-2000, it is proposed to increase quantum of implementation
of Feed Transport Subsidy in order to reduce the cost of livestock
and poultry production as well as to encourage more families to adopt
livestock and poultry farming for livelihood.
(xvi) Food & Civil Supplies: The
department has been trying improvement of distribution of LPG and
through the efforts of the department, IOC has purchased a site for
establishment of Bottling Plant to ensure long term solution of the
scarcity of LPG.
(xvii) Sericulture: A number of rural
families have adopted sericulture farming and silkworm rearing and
have been earning sustainable income. As may as 300 families in various
places have established sericulture farming and it is expected to
double the number in the near future. To improve the sericulture development,
the department will concentrate on research and training and seed
production in 1999-2000.
(xviii) Home Guard: 155 Home Guards
were trained in Basic, Leadership and Advance training courses and
100 odd excise personnel were also given training. For the first time,
Mizoram Home Guards participated in All India Home Guards and Civil
Defence Professional and Sports Meet 1998 at Calcutta.
(xix) Tourism: The department has increased
tourist accommodation by 12 additional rooms comprising 40 beds in
various Tourist Lodges during the current year. Therefore, the department
has 111 rooms having 328 beds in operation in various places within
the State.
During 1999-2000, with the Centrally Sponsored Scheme
Fund from Govt. of India, a number of projects for development of
tourist and pilgrimage centres will be taken up on priority.
(xx) Revenue: Cadastral survey operation
has been carried out and as much as five notified towns are covered
during this year. During 1999-2000, ten notified towns will be targeted
for Cadastral Survey Operation and it is also proposed to complete
House site Plan of 2000 plots for allotment to the needy families.
(xxi) Prison: To accommodate increased
inmates in various jails as a result of implementation of Mizoram
Total Prohibition Act, new barracks and quarters have been constructed.
Against the upgradation of administration grants, repair and renovation
of existing accommodations and improvement for medical care and sanitations
for prisoners were taken up.
(xxii) Local Adminstration Department:
In view of the increased cost of construction of houses, the quantum
of composite cash loan to Govt. employees and housing loan to private
families have been enhanced and during this year additional amount
of Rs. 10.00 crores have been received an hence more people will be
benefited.
(xxii) Administrative Training Institute:
With a meager fund, the department is conducting 28 different training
programmes during the current financial year. In 1999-2000, at least
25 programmes of different courses are proposed to be conducted. So
far the Institute has imparted training to 7050 Government servants
of various categories.
(xxiv) Trade & Commerce: During
1998-99, semi-permanent market buildings at Vairengte Bazar and Bawngkawn
Bazar were constructed. With an expectation of assured remunerative
price of ginger in the coming seasons, financial assistance by way
of loan is being extended to producers of ginger for seeds and intending
ginger growers. To facilitate and to encourage export schemes, project
report for installation of Export intensive Area at Tlabung with an
estimated amount of Rs. 5.00 crores is prepared an sent to the Governnment
of India fdor approval.
During 1999-2000, the department propose to open
regional office at Lunglei and Champhai and checkgates at Tlabung
and Champhai-Zokhawthar will bee installed. Waterways in Chhimtuipui,
Khawthlangtuipui and Tlawng will be developed to make them navigable.
To facilitate operation of Trade, buildings for warehouse, godowns,
regional offices and check gates sheds will be constructed. Great
emphasis will be laid on arrangement of marketing channels for the
remunerative selling of Mizoram products outside the State.
(xxv) General Administration Department:
During 1998-1999, foundation stone for construction of Guest House
at Bangalore has been laid. This Guest House will cater to the needs
of the increasing large number of Mizo Students, the Mizo Community
of Bangalore and the touring VIPs and others.
The dream of having a modern airport capable of handling
bigger aircraft has become a reality, thanks to the Central Government
for the generous financial support. Indian Airlines now operate regular
flights thrice a week on every Tuesday, Thursday and Saturday on Calcutta-Aizawl-Imphal
route. We are pressing the Central Government to operate daily flights
to arrive Aizawl and also to connect Aizawl with Guwahati.
During 1999-2000, efforts will be made to make the
newly created five Districts, thirteen Civil sub-divisions and five
Sadar sub-divisions operationalise effectively.
REVISED ESTIMATES FOR
1998-1999 12. The current financial year of 1998-1999 was opened
with a deficit of rs. 79.36 cores against the estimated deficit of
Rs. 85.77 crores. Over and above a deficit of Rs. 79.36 crores, the
Government parked about Rs. 60.00 crores in the K. Deposit out of
the fund of 1997-1998 and in reality the opening deficit should have
been Rs. 139.36 crores. The reason of heavy opening deficit is attributed
to the non fulfillment of tehe commitments made on resource mobilization
during the previous year. At the same time devolution of fund under
share of taxes from Central Government has been considerably reduced
due to less collection of revenue by the Central Government.
13. As per the Revised Estimates, it is estimated
to close the year with a deficit of Rs. 126.11 crores which is much
more than the Budget Estimated deficit of s. 59.96 crores. The main
reasons of this increase is due to release of K. Deposit, release
of Dearness Allowance @ 22% of basic pay to the Government servants
and also discontinuation of impounding D.A. and I.R. of the Government
servants into their G.P. Fund accounts from November, 1998.
14. I may say that it is really unfortunate to reduce
the Annual Plan allocation under various sectors in the Revised Estimate.
This reduction has to be done under compulsion as the State could
not fulfil its commitments for mobilization of additional resources
and non accrual of the envisaged amounts from GPF account from plan
funding due to discontinuance of impounding D.A. and I.R. of Government
employees.
BUDGET ESTIMATE FOR 1999-2000
15. The Budget Estimates for 1999-2000 has been prepared with an estimated
opening deficit of Rs. 126.11 crores. There is further deterioration
from the opening deficit of the previous year due to reason stated
earlier. As already stated by me, the resource base of the state is
so meager, there is practically no scope to improve during this extremely
short period of our Ministry. The estimated closing deficit for the
year 1999-2000 is Rs. 157.35 crores. This substantial deterioration
is mainly due to making Plan allocation at the level of 1998-1999
as advised by the Planning Cojmission at the level of 1998-1999 as
advised by the Planning Commission. On the other hand, the State’
s own resources have been greatly reduced as no additional resources
is envisaged at this stage and that impounding of D.A. and I.R. of
the Govt. employees have been discontinued, resulting to less amount
in GPF account for funding the Annual Plan.
16. The need of the hour is to mobilize more resources
in the State and at the same time to drastically reduce the Non-Plan
expenditure. We would make an endeavour to fully tap all the existing
resources mobilization, my Government willl ensure that the poorer
sections of the citizen are not affected.
17. As required, the Annual Financial Statement 1999-2000
has been laid before this august House. However, as already stated
in the beginning, I am, at this, seeking "Vote on Account"
for the first four months – April to July of the fiscal year 1999-2000.
18. Sir, while I would like to thank all the members
of the House for giving me a patient hearing, I express my sincere
apology for presenting budget documents the printing of which is not
upto the desired quality due to certain technical problem. I also
express my sincere appreciation to the officers and staff of Finance
and the Printing & Stationery Departments for helping me in preparation
of this budget. My thanks are also due to the Mizoram Unit of National
Informatic Centre for their valuable co-operation.
19. With these words, I commended the Supplementary
Demands for 1998-1999 and the "Vote on Account" of the budget
for 1999-2000 for consideration and approval of the House.
Thank you.
