Ibobi presents tentative state budget estimate of Rs. 4550 crore

IMPHAL, Mar 18 : The state budget estimate of Rs. 4

However, the chief minister qualified his statement saying that the provisions under plan are tentative as the plan outlay for the state for 2009-10 has not yet been finalised as the final round of discussions with the deputy chairman, Planning Commission, are pending on account of the announcement of the elections.

Under the circumstance, the estimate would have to be revised through supplementary demands when the outlay is finalised, he said.

The chief minister said of the total of Rs 4550 crore total estimated expenditure, Rs. 1733 crores would be under plan, Rs. 2592.79 crores under non-plan and Rs 224.21 crores under Centrally sponsored schemes, Central plan schemes and NEC schemes.

“As these estimates will be subject to the finalisation of the Central Budget for Non-Plan, Plan and CSS transfers the detailed Demands for Grants for 2009-10 will be placed in the full budget session later.”

He said.

He said out of the Budget Estimates, an amount of Rs 461.98 crores is charged expenditure and the remaining amount of Rs 4088.02 crores is Voted Expenditure.

Giving a broad overview of the state economy, the chief minister said the economic growth in the state has gathered momentum in the last 7-8 years after relative stagnation.

He said during the 10th Plan Period (2002-207) the annual average growth rate of the Gross State Domestic Product, GSDP, at current prices has shown a growth of 9.74 percent.

The engine behind this growth were construction, trade, hotels & restaurants, banking & insurance and public administration, he said adding that in particular the construction sector recorded over 100 percent growth during he period.

The chief minister said the economy slowed down a little during 2006-2007 and during 2007-2008 and this had caused his government worries. He said his government is committed to the economic philosophy that only sustained accelerated economic growth can place the state on a sound economic and fiscal footing.

He pledged that reversing this trend and bringing back the state economy on the path of accelerating growth once again is his government’s commitment.

He however showed apprehension that things may not be totally under the control of his government given the circumstance that nearly 90 percent of the state’s revenue receipts compromises of transfers from the Centre, hence depending on how badly the revenue collection of the Central government is affected by the global recession, the shares of the states may suffer reciprocally.

He however expressed hope that the swift measures taken by the Central government to meet the global crisis would be adequate for the country to recover and return to the path of growth and poverty reduction.