Bangladesh National Budget Speech 2011-12

Bangladesh Budget 2011-2012

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Mr. Speaker Sir,
I rise to present the Budget Estimates for the year 2011-12.


2. The Budget presents an overview of Government’s activities and achievements
during the current year, analyses our present position, and outlines the
growth strategy for future development and for meeting the aspirations of
the people of the State.


National Economy
3. The Union Finance Minister, in the midst of global economic uncertainties
and challenges, presented a balanced budget addressing the key issues
of inflation and growth of the Indian economy. The economic growth in
2010-11 has attained its pre-crisis momentum and needs to be sustained
by making suitable adjustments in the composition of growth on demand
and supply side. I had mentioned last year that we can look forward to the
resumption of a high growth path that will make the country economically
strong. The Indian economy has recovered rapidly and succeeded in
addressing the key areas of concern thereby achieving remarkable growth.
The Economic Survey 2010-11 has estimated that the Gross Domestic
Product (GDP) of India has grown at 8.6 %, agriculture at 5.4 %, industry
at 8.1 % and services at 9.6 %. All three sectors are significantly contributing
to the consolidation of the country’s economic growth. Exports have grown
by 29.4 %, while imports have recorded a growth of 17.6 % during April to
January 2010-11 over the corresponding period last year.


4. In 2011-12, the Indian economy is expected to grow at about 9 % taking
into account the global economic developments, expectations of investors,
entrepreneurs and the consumers. The fiscal deficit is estimated at 4.6 %
of GDP.


5. The Union Finance Minister in his budget speech has spelt out some
initiatives for boosting development in the North Eastern Region and Special
Category States. The allocation for Special Assistance has been almost
doubled to ` 8,000 crore for 2011-12, out of which, ` 5,400 crore has
been allocated as untied Special Central Assistance.


State Economy
6. The Gross State Domestic Product at current prices increased from `10,905
crore in 2008-09 to ` 12,648 crore in 2009-10 and to ` 14,472 crore in
2010-11, indicating increases of 13.4%, 15.9 % and 14.4% respectively.
In the same period, per capita annual income increased from ` 42,801 to
` 49,064 and to ` 55,472, an increase of 12.2%, 14.6% and 13%
respectively. The contribution of the primary sector decreased from 20.41%
in 2009-10 to 19.92% during 2010-11. The weightage of service sector
increased, from 47.99% to 48.17% during the corresponding period. On
the other hand, the share of industry has increased marginally from 31.58%
to 31.89%.


State Finances
7. Sir, coming to the financial position of the State, analysis shows that after a
fall in the revenue surplus of the State for two consecutive years 2007-09
on account of global financial meltdown, the revenue surplus of the State
bounced back to ` 264.94 crore in 2009-10 as compared to ` 127.87
crore in 2008-09. Primary deficit also showed a major improvement from
(-) ` 223.05 crore in 2008-09 to (-) ` 2.31 crore in 2009-10. However,
the fiscal deficit is likely to increase from (-) ` 266.29 crore or 2.1%
of GSDP in 2009-10 to (-) ` 376 crore or 2.6% of GSDP in 2010-2011.
The fiscal deficit is estimated at (-) ` 418.81 crore or 2.5% of GSDP in
2011-12.


Fiscal Consolidation
8. The slight increase in fiscal estimation for the ensuing fiscal year, 2011-12
is basically due to the impact of the higher expenditure commitments relating
to the creation of the 6th Meghalaya Police Battalion, revised pay scale and
arrears for both sitting and non-sitting MLAs of the State and expenditure
in connection with the census operation. However, relative to the target on
fiscal deficit i.e. 3% of GSDP set out in the Meghalaya Fiscal Responsibility
and Budget Management Act, 2006, the expected fiscal performance of
the State on the whole is still better and this has been possible on account
of the efforts of the State to achieve fiscal consolidation through resource
mobilization by way of enhancement and rationalization of tax rates, fines, and fees, besides measures like management through fiscal austerity,
restriction on Non Plan Expenditure, and the implementation of the Meghalaya
Fiscal Responsibility and Budget Management Act, 2006 were enforced.
In addition, stringent corrective action to plug loopholes in collection of tax
and non-tax revenue will help in fiscal consolidation.


Non Plan Gap
9. Sir, the fiscal performance of the State has improved. However, the problems
associated with the management of State finances, especially the non plan
revenue expenditure, are still a matter of concern. On an average, 80% of
the non plan revenue receipts are allocated towards committed liabilities
such as salaries, pension and interest payments, leaving limited resources
for meeting other non plan expenditure commitments. This has resulted in
a non plan gap in successive years. The gap, besides limiting the ability of
the State to effectively manage the non plan requirement, also impinges on
the State’s Plan expenditure. In the Budget, I have proposed measures to
mobilize additional resources, both under tax and non tax with a view to
reducing the adverse impacts of the non plan gap.


Additional Resource Mobilization
10. For raising additional resources, we have considered the recommendations
in the First Interim Report of the Task Force for Resource Mobilization. The
VAT rates have been raised from 4% to 5% and from 12.5% to 13.5%.
Besides, other measures like streamlining the collection of Meghalaya Tax
on Luxuries (Hotels and Lodging Houses) by way of ensuring registration
of all hotels and lodging houses and reclassifying them in accordance with
the present tariff rates has been initiated. Imposition of cess at ` 20 per
M.T. on cement for social sector, introduction of ad valorem system of
taxation and holograms in the sale of liquor to check revenue leakages,
revision of the liquor registration fees, rationalization of motor vehicle taxes
and fees, revision of registration fees and court fee stamps have been
initiated. These measures are expected to yield an additional revenue of
about ` 50 crore annually. I also expect release of over ` 100 crore from
the Government of India as compensation for the loss incurred by the
State on account of implementation of VAT during the three years after it
was enacted.


13th Finance Commission
11. In keeping with the spirit of fiscal prudence initiated by the earlier Finance
Commission, the 13th Finance Commission has recommended new targets,
time frames and a Medium Term Fiscal Plan to enable the State in achieving
fiscal consolidation and sustainability. To incentivise the State to carry out
the above recommendations, the Finance Commission has linked release
of State Specific Grants with the amendment of certain sections of the
Meghalaya Fiscal Responsibility and Budget Management Act, 2006. The
entitlement of the State for 2011-15 under State Specific Grant is ` 250
crore, at ` 62.50 crore per year. The process for amendment of the Act is
underway and the same would be placed before the House for its
consideration. The 13th Finance Commission awards have also
complemented the State’s efforts to mobilize additional resources.


12. Sir, though concerted efforts have been made to augment the revenue
prospects of the State, other economic and fiscal factors such as the
impact of inflation, additional burden on account of revised pay scales and
arrears for Government employees, pensioners, MLAs, teachers and staff
of Government Aided institutions together would increase expenditure
commitments of the State. However, I am confident that with the additional
resource mobilization that I have initiated, and the fiscal consolidation path
spelt out in the proposed amendments to the Meghalaya Fiscal Responsibility
and Budget Management Act, 2006, along with the expected favourable
growth of the Indian economy, the financial position of the State will improve
in the near future.


Consolidated Sinking Fund
13. The Corpus under the Consolidated Sinking Fund as on date is ` 139.97
crore. In 2011-12, I propose to increase the current year’s contribution of
` 15.63 crore to ` 17.56 crore.


Financial Sector
14. The State has a low CD ratio of 33.43 % as of December 2010 against the
National norm of 60%. To address the issue of credit flow in various sectors
of the economy, banks with CD ratio below 20% have been advised to
chalk out an action plan to improve their performance and maintain a CD
ratio of above 40%.


15. In order to promote financial inclusion and facilitate the flow of credit to
unbanked blocks, two new bank branches have been opened in Gambegre
and Nongshillong taking the total number of branches to 258. A branch at
Saipung will be opened shortly by Punjab National Bank. Government is
also pursuing with United Bank of India to open a branch at Shallang. For
rolling out the Electronic Benefit Transfer mechanism in the State with
regard to payment of wages to NREGS beneficiaries through their bank
accounts, a MoU has been signed by the Government with the State Bank
of India on 12th November 2010.


16. Sir, I have also made earnest efforts to fulfill the commitments I spelt out
last year. Employees salaries and bills of contractors and suppliers are
mostly being paid through account payee transfers. Cyber Treasury has
been implemented and registered dealers have the option of paying taxes
using Net Banking facility. Treasury NET is now operational in all Treasuries.
An outlay of `1 crore has been provided during 2011-12 for strengthening
the IT-infrastructure in the Directorate of Accounts and Treasuries for
achieving maximum benefit from treasury computerization including
Electronic Clearing System in the State.


17. Pension Automated System has been operationalised and pensioners
drawing pension through treasuries are being paid directly to their respective
bank accounts. For State Government employees joining service on and
after 1st April 2010, New Pension scheme is being implemented.
18. As recommended by the 13th Finance Commission, the State has initiated
steps to create an Employee and Pension Database for having detailed
information on Government employees and pensioners. This would enable
the Government to have accurate information on the work force and help in
forecasting future expenditures. The Government of India has approved
financial assistance to the tune of ` 5 crore for the project, of which ` 2.50
crore has been released to the State during 2010-11.


Externally Aided Projects
19. The projects being implemented under Externally Aided Programme in the
State are: (i) Renovation & Modernization of the Umïam Stage II Power
Station with funding from the Japan Bank for International Co-operation at
a cost of ` 90.46 crore. (ii) Vocational Training Improvement Project, at ITI Tura with funding from the World Bank at an estimated cost of ` 3 crore.
(iii) The Livelihood Improvement Project for the Himalayas with funding
from the International Fund for Agricultural Development at an estimated
cost of ` 110 crore. There is one ADB funded project under implementation
namely, North Eastern Region Capital Cities Development Investment
Programme with an investment of ` 250 crore. Two projects namely, North
Eastern State Roads Investment Programme with an investment of ` 403
crore and Meghalaya Public Resource Management Programme with an
estimated investment of around ` 415 crore are under consideration of
ADB funding.


20. With a view to put the State finances on a positive path of increased revenue,
rationalization of expenditure and debt restructuring, Meghalaya Public
Resource Management Programme is being designed and initiated by the
State Government with the assistance of ADB. The Programme will also
cover Health and Education sectors. In the Health sector, programme
assistance is proposed for developing the Meghalaya Health Care Scheme
on a sustainable basis to minimize the increasing expenditure burden of
the State. In the Education sector, the Programme is designed to improve
the quality of education in schools and colleges through various options
including replacing under-qualified teachers.


PLAN
21. Sir, the 11th Plan outlay for Meghalaya is ` 9185 crore. The State Plan
expenditure during 2007-08 was ` 984.06 crore as against the outlay of
`1120 crore. During 2008-09, the expenditure was ` 1386.95 crore as
against the outlay of ` 1400 crore. In 2009-10, the approved outlay was
` 2100 crore and the expenditure incurred was ` 1417.86 crore. During
the current year (2010-11), a Plan size of ` 2230 crore was agreed for
Meghalaya, which included an amount of ` 400 crore of Special Plan
Assistance, ` 100 crore of Special Central Assistance, ` 90.55 crore
of E.A.P. component and ` 60 crore of NABARD loan.
22. The State Government proposes a Plan size of ` 2727 crore for the year
2011-12. The actual size of the Annual Plan will be finalized in the meeting
between the State Government and the Planning Commission.


23. Therefore, a Plan budget of ` 2727 crore for 2011-12 is being tabled
before the House. The State Government proposes to continue with the
implementation of new programmes initiated during 2010-11 such as the
Integrated Basin Development-cum-Livelihood Programme for which an
amount of ` 20 crore has been allocated and setting up of two institutes
viz. Institute of Governance and Institute of Entrepreneurship, for which an
amount of ` 5 crore each has been provided. Another important programme
includes the promotion of value chains for sustainable livelihoods for which
a provision of ` 5 crore has been earmarked.


24. Other important initiatives proposed to be taken up during 2011-12 include
promotion of ‘Green City’ and ‘Energy Efficiency’. Under this initiative, the
street lights of Shillong and Tura towns are proposed to be electrified using
energy efficient LED bulbs and harnessing solar energy. Besides this, the
Government is also introducing a scheme for viability gap funding to
encourage convergence based initiatives. Promotion of inclusive growth
with special attention to less developed areas will also be given added
focus during the next year.


25. In respect of the development of sports, construction of a world class football
stadium in Shillong is proposed to be undertaken with the aim of improving
the sports infrastructure in the State.


Non Lapsable Central Pool of Resources
26. Since the launching of the scheme for Non Lapsable Central Pool of
Resources (NLCPR), the Government has so far received a release of
` 506.96 crore as against the approved cost of ` 839.33 crore for 81
Projects from this pool. Till date, 19 NLCPR projects had been completed
and 62 projects are in different stages of implementation. During the
present year, 9 projects with total project cost of `176.44 crore have
been retained. For the year 2011-12, projects with an outlay of ` 337.00
crore have been proposed.


North Eastern Council
27. During the year 2010-11, the North Eastern Council has released ` 65.89
crore for 12 projects till February, 2011 and has also retained 9 projects
with total project cost of ` 76.44 crore. An amount of ` 102.60 crore has been proposed under NEC for the Annual Plan 2011-12. Sectors that have
benefited most from the NEC’s support are Roads and Bridges, Health and
Power.


Economics and Statistics
28. During 2010-11, the Directorate of Economics and Statistics have completed
the field work of National Sample Survey 65th Round Survey covering
domestic tourism, housing condition and urban slums . The survey of 66th
Round covering employment and un-employment and consumer expenditure
is in progress. 2,785 crop cutting experiments under the National Agriculture
Crop Insurance Scheme were undertaken.


29. The 13th Finance Commission has recommended ` 7 crore for the period
2010-15, allocating ` 1 crore to each district for improving the statistical
infrastructure.


Law and Order
30. Sir, the law and order situation in different parts of the State continues to be
stable, peaceful and well under control. The recent ethnic clashes in
Resubelpara Sub-Division, on the Assam-Meghalaya border were
unfortunate. The affected people have since returned and efforts are being
made to resettle them. As you are aware, the House has recently passed
a resolution for setting up of an Inter state Boundary Commission to solve
the border dispute with Assam. However, in the meantime, mechanism at
the level of Chief Ministers and Chief Secretaries of two States which has
been created will continue their exercise. Situation in the international border
with Bangladesh is peaceful. Militancy in the State is under control and the
State Police has been able to effectively contain the activities of militant
organizations. Due to porous border, the State faces problem on account
of influx of Bangladeshi nationals and existence of bases of some of the
militant organizations of North East in Bangladesh. For curbing the menace,
Government is committed to complete the border fencing on the International
Border expeditiously. Besides, Government will ensure police presence
and visibility in areas that were not covered in the past by creating more
police stations and police outposts in a phased manner.


31. The Government proposes to set up two District Mobile Forensic Units in
West Garo Hills District and Jaiñtia Hills District and a Cyber Crime training
facility unit in Forensic Science Laboratory under the Composite Scheme
of Modernization of Government of India.


Prisons
32. The Plan outlay for the Prisons Department during 2011-2012 is ` 4 crore.
Out of this, ` 2.20 crore is to be utilized by the Public Works Department
for improvement of jails and acquisition of land at Baghmara for construction
of new jail.


Civil Defence
33. The Home Guards and Civil Defence Department assists the civil
administration in times of natural calamity and for internal security duties.
The Department imparted disaster management trainings to Civil Defence
and Home Guards volunteers and has procured additional training equipment
for disaster management. Development of the Home Guards and Civil
Defence Complex at Mawdiangdiang is progressing well.
I propose a Plan outlay of ` 4 crore during 2011-2012.


Development of Border Areas
34. As a special focus on villages bordering Bangladesh, Border Areas
Development Department is implementing schemes to supplement schemes
implemented by various Departments for improving the economic condition
of the people.
I propose a Plan outlay of ` 18.75 crore during 2011-12.


District Councils
35. The Government would continue to support the District Councils to enable
them to discharge their constitutional obligation to safe guard the rights
and interest of the indigenous tribal people within their jurisdiction.


36. Assistance to the Councils would also continue for the developmental
schemes for which Plan outlay for the year 2011-2012 is ` 12.23 crore for
‘financing their own Plan schemes’, ` 1.67 crore for Construction of District
Council Buildings and ` 7.50 crore for Construction and Development of
Rural Market under NLCPR.


Power
37. Sir, the power sector has been identified as one of the priority
sectors of the State, in line with Government of India’s decision to
make power accessible to all households in the country by 2012. In
pursuance of this objective, Government of India has launched the
Rajiv Gandhi Gramin Vidyutikaran Yojana for rural electrification. As per
2001 census, out of 5782 villages in the State, 3965 villages are having
access to electricity. The remaining 1817 villages are proposed to be
electrified under RGGVY and other ongoing schemes. An amount of
` 385.12 crore has been approved for this scheme.


38. With 100 % electrification of villages, and increasing demand of both
industrial and household consumers, the demand for power in 2012 is
expected to go up to around 800 Mega Watts (MWs). This is against
our installed capacity of 187 MWs, and central sector share of power
of around 200 MWs. However, with the commissioning of Myntdu –
Leshka and New Umtru Hydro Electric Projects (HEP’s) the States
generation will increase by 166 MWs, totaling 353 MWs. Our share of
power from Central PSU projects in the region is expected to go up to
560 MWs by 2014.


39. The State Government has also initiated steps to augment capacity addition
in generation by involving the private sector. MOAs were signed for Umduna
(57 MWs), Umjaut (69 MWs) and Rangmaw (65 MWs) with Independent
Power Producers (IPPs). MOAs have also been signed for projects
under Joint Venture for Kynshi I and II HEP’s (900 MWs). An Agreement
has been signed with NEEPCO for Garo Hills Thermal Project (500
MWs). One Memorandum of Understanding (MoA) for a thermal project
in Nangalbibra, South Garo Hills, has been signed under IPP mode
for a 240 MW project. All these projects are expected to be commissioned
in the 12th Plan period.


40. The Government has also taken steps to address the transmission
constraints in the State. We are now connected to the N.E. Grid after
completion of the Misa – Byrnihat 220 KV transmission line. Meghalaya
Energy Corporation Ltd. can draw upto 250 MWs of power from this
line. In order to provide an alternative transmission system to the Garo Hills region, the Agia Nangalbibra line has been taken up and is
expected to be completed shortly. Initially, 50 MWs of power can be
drawn through this line, which would meet the demand of the three
districts. On completion of the double circuit line, the capacity will
increase to 100 MWs.


41. In order to strengthen the transmission and distribution system, and
reduce Aggregate Technical and Commercial losses, the State Government
has taken up implementation of the Restructured Accelerated Power
Development Reforms Programme in nine towns of the State i.e. Shillong,
Jowai, Tura, Nongstoiñ, Nongpoh, Williamnagar, Resubelpara, Mairang
and Cherrapunjee. The scheme has been approved at an estimated cost
of ` 33.97 crore.
I propose a Plan outlay of ` 670 crore during 2011 -12.


42. With a view to exploiting the renewable sources of energy, the Meghalaya
Non Conventional and Renewable Energy Development Agency has been
implementing schemes under solar, bio-energy, biomass and biogas
sectors. 2000 Home Lighting Systems through solar energy are proposed
to be installed in 2011 – 12. Solar Photovoltaic Power Plants, both
off-grid and grid connected will be taken up in schools, institutions,
Government offices, and commercial complexes. 158 villages will be
electrified under the Remote Village Electrification Programme of the
Government of India. Wind energy potential is being assessed during
2010-11 and 2011-12.
I propose a Plan outlay of ` 4.90 crore during 2011-12.


Commerce and Industries
43. Sir, I am happy to mention that the Government has made significant
achievements in raising micro, small and medium industries in the State
with considerable increase in employment. At present there are 7053
registered SSI units with a total investment of ` 117.75 crore and employment
potential of 23803 persons and 84 large and medium units in the State
generating employment opportunity to 3151 persons. In addition, there are
221 units under the Prime Minister’s Employment Generation Programme
creating employment for about 800 persons.


44. The initiative of the State to have a revised “Meghalaya Industrial Investment
Promotion Policy” and “Policy on Corporate Social Responsibility” will
address the issues of promoting growth and investment along with the
environmental concerns and protecting the interest of indigenous people.


45. To encourage first generation entrepreneurs and bridge the gap of
unemployment, vocational training is being taken up. During the current
year, trainees were sponsored to undergo training in the field of fashion
technology at National Institute of Fashion Technology, Kolkata, banana
fibre extraction and utilization, hairstyling & beauty care at North Eastern
Industrial and Technical Consultancy Organization (NEITCO), Guwahati
and entrepreneurship and skill development training on automobile repairing
and servicing at NEITCO, Shillong.


46. With a view to increasing exports, Government has decided to upgrade the
infrastructures of two Land Customs Stations at Dalu and Gasuapara in
West Garo Hills and South Garo Hills Districts respectively. For this purpose,
Government of India has accorded sanction of `12 crore. In addition, the
operation of two Border Haats at Kalaichar (West Garo Hills District) and
Balat (East Khasi Hills District) has been approved. The infrastructures is
almost complete and is expected to be commissioned shortly.
I propose a Plan outlay of ` 37.40 crore during 2011-12.


Mineral Resources
47. The Directorate of Mineral Resources carries out exploration of mineral
deposits, administers mines and minerals and collects revenues on major
minerals produced in the State. Ground water exploration and geo-technical
studies are also conducted. Six geological programmes on mineral
exploration were undertaken during 2010-2011.


48. The total production of coal and limestone in the State during 2009-2010
was 57.67 lakh M.T. and limestone 38.82 lakh M.T. respectively. The total
revenue collected on these minerals during the year was ` 198.12 crore.
Production of coal and limestone during 2010-2011 upto January 2011
was recorded at 50.75 lakh M.T. and 21.59 lakh M.T. and the total revenue
collected on major minerals upto January 2011 is `172.82 crore.


49. Government is assisting the Meghalaya Mineral Development Corporation
Limited for its mineral development activities. Share of royalty on major
minerals to the concerned Autonomous District Councils of the State is
being provided.
I propose a Plan outlay of ` 5 crore during 2011-12.


Health and Family Welfare
50. The State has come a long way in improving the health facilities and the
health status of the people. However, there are still many challenges to
counter in order to achieve the desired objective of health for all. The
biggest challenges of the State health sector are issues of infant mortality
and maternal mortality. I propose a number of new initiatives to be taken up
to improve the health indices in the State. New born baby corners, radiant
warmers have been provided at the CHCs and District hospitals through
the NRHM. Referral transport for pregnant mothers has been sanctioned
and they are also assisted under the Janani Suraksha Yojana for an
amount of ` 700/- per institutional delivery. In addition, a new scheme to
motivate pregnant mothers to deliver at health institutions is being proposed
wherein each beneficiary would be given cash incentive.


51. To address the problem of shortage of Specialists, Emergency Management
of Obstetrics Care, training has started and doctors who have completed
the training have been posted at designated locations. To address the
problem of accessibility, ambulatory services have been augmented and
the 108 EMRI service has been further strengthened with the sanction of
twenty four new vehicles during the current year. To improve infrastructure
the Ganesh Das hospital which has been awarded the ISO certification for
quality treatment would be renovated and construction of a new building
will commence during 2011-12.


A focused approach is being adopted to combat various diseases under
the control programmes like Tuberculosis, Leprosy, Malaria, Blindness and
AIDS. The Government has been successful in tackling the outbreak of
Meningococcal Meningitis and due to swift and timely intervention, Swine
Flu, dengue, and chikungunya had no impact in the State. The Deafness
Control programme has been initiated during the current year and will be
further strengthened. Deaths on account of Malaria fell by 50% during the year 2010 compared to 2009 as timely steps were taken to combat the
problem through community participation, awareness campaigns, supply
of drugs and testing kits to ASHAs.


52. A Cancer Wing at Civil Hospital, Shillong is being established and the
foundation stone for the project was recently laid at the Civil Hospital
premises in Shillong. Cancer awareness and detection drives through fully
equipped Mobile Cancer Detection Units were held and so far more than
100 screening camps have been conducted.


53. The proposed Medical Colleges, both on PPP mode at Shillong and
Government Medical College at Tura would be initiated during 2011-12.
Additional CHCs, PHCs and Sub Centres would be commissioned during
the next financial year where construction work has been completed to
further augment the network of health institutions in the State.
I propose a Plan outlay of `170 crores during 2011-12.


Education
54. Sir, we are taking steps to prepare an enabling environment for
implementation of RTE, 2009 through interventions under the SSA
programme. A detailed GIS Mapping exercise has been completed and all
gaps will be addressed suitably. Funds for the Saakshar Bharat programme
have been received from the Government of India for carrying out the
specified activities.


55. Keeping in mind the limited training capacity of its Institutions, Government
is floating an Expression of Interest inviting recognized teachers training
institutions to run training courses for teachers from the private sector as
also fresh candidates. The welfare of teachers has also been a priority
area for the Government. In February 2011, grant-in-aid was enhanced
for payment of salaries to 2157 teachers in Adhoc Secondary Schools
and 452 Teachers in Higher Secondary Schools. Government is committed
to improving the curriculum and course content in schools. A process has
been initiated to integrate selected Vocational Courses in mainstream syllabi.


56. In the field of Higher and Technical Education, construction work is expected
to start for the National Institute of Technology at Sohra. This is totally
funded by the Government of India with land being provided by the State Government. An Institute of Information Technology is also being set up,
for which land is being identified. Keeping in mind the scarcity of colleges
in most of the districts in Meghalaya, model colleges are proposed to be
set up in the 5 districts of Jaintia Hills, East Garo Hills, South Garo Hills,
Ri-Bhoi and West Khasi Hills. The arrangement envisaged is on a tripartite
mode involving the Government of India, the State Government and a Private
Party. Towards this end, an EOI will be floated.


57. With a view to further sharpen the State’s profile in providing quality school
education, three International Schools under the famous Pine Mount banner
will be set up in three districts. Proposals have also been forwarded to the
Government of India for funding nine model schools in the three districts of
Garo Hills.
I propose a Plan outlay of ` 191.50 crore under General Education
and ` 18.00 crore under Technical Education during 2011-2012.


Labour
58. Employment and employability delivery systems are being improved through
upgradation of ITIs, strengthening of Employment Exchanges, setting up
of new ITIs and Skill Development Centres. ITI, Shillong under Private
Public Partnership and ITI, Tura under World Bank Assistance are being
upgraded. The various Labour laws are implemented with a view to achieve
the objectives of fair and just employment conditions of the workers.
I propose a Plan outlay of `14 crore for Employment and Craftsmen
Training and ` 2 crore for strengthening the implementation machinery for
Labour laws during 2011-12.


Social Welfare
59. Sir, in 2010-2011, supplementary nutrition programme for 4,91,322
beneficiaries of all the 41 ICDS projects including urban areas was
implemented. The coverage of the programme will be enhanced to 6,84,433
beneficiaries during 2011-2012. Significant achievements were also made
in the implementation of welfare schemes for disabled persons, such as
extending scholarship to 1037 physically handicapped and vocational
training to 69 disabled persons. Grants for purchase of uniforms and books
to 551 students, conveyance allowance to 176 disabled persons, unemployment allowance to 25 physically disabled persons and financial
assistance for medical treatment to 227 aged destitute persons were also
provided. 726 children in Need of Care and Protection are being provided
with food, clothing, shelter and education through 90 Non-Governmental
Organizations. These schemes will be continued during 2011-12 with
enhanced coverage. Efforts are being made for convergence of various
social sector Programmes in coordination with other allied departments
and NGOs.
I propose a Plan outlay of ` 18 crore for Social Security Sector and
`12.50 crore for Nutrition Sector during 2011-12.


Water Supply and Sanitation
60. Government will take all steps to provide safe drinking water. During the
present year, 201 habitations have been provided with safe drinking water
supply. Besides this, 666 stand alone Water Purification Systems in rural
schools is proposed to be installed under Jalmani Programme during 2010-
11. So far, 274 rural schools have been covered under Jalmani Programme.
Other water supply schemes like Sohryngkham, Mawsynram, Ïalong,
Raliang, Umsning and Umroi have been included for funding by DONER
and the work is expected to start soon. Recently DONER has retained
Upper Shillong WSS for funding under NLCPR. Under the Total Sanitation
Campaign, construction of individual household latrines, school latrines,
sanitary complexes and Anganwadi toilets would be given priority. 160
villages were awarded Nirmal Gram Purashkar during 2010-11. Effort to
accelerate the progress of implementation of Total Sanitation Campaign in
the State has been given priority.
I propose a Plan outlay of ` 136 crore during 2011-12.


Rural Development
61. The Community & Rural Development sector plays a significant role in the
socio-economic growth of rural areas. Implementation of Centrally
Sponsored Schemes and Programmes like Swarnjayanti Gram Swarozgar
Yojana, Indira Awaas Yojana, Mahatma Gandhi National Rural Employment
Guarantee Scheme, National Social Assistance Programme and the Central
Sector Schemes like Backward Regions G ant Fund will continue during 2011-12. State Sector Schemes for Assistance to Small and Marginal
Farmers, Special Rural Works Programme, Construction of Rural Roads
Programme and Chief Minister’s Special Rural Development Fund and
other CD Schemes will also continue to be implemented. Fresh BPL survey
2011 will be conducted shortly in rural areas. One Rural Self Employment
and Training Institute has also been set up by SBI in Ri-Bhoi District to
upgrade the skills of the entrepreneurs and thereby improving their
employment opportunities. Such Institutes are proposed to be set up in
other Districts as well.
I propose a Plan outlay of ` 214.08 crore during 2011-12.


Food Security
62. Government will continue to supply foodgrains at subsidized rates to the
beneficiaries covered under Public Distribution System and Consumer
Courts have been set up at the State and District levels under the provisions
of the Consumers Protection Act, 1986. In order to make consumers aware
of their rights, wide publicity has been made by holding of Consumer
Awareness Programmes, observation of Consumers Rights’ Day involving
NGOs and through advertisements.
I propose a Plan outlay of ` 1.50 crore during 2011-12.


Road Connectivity
63. Sir, Government is laying stress on development of road network in the
State. For the Financial Year 2011-12, Plan outlay for road sector has
been fixed at ` 330.30 crore and the physical target is approximately 80
Km of new construction/improvement and widening, 406 km of metalling
and blacktopping and 1338 running metres of bridges.


64. Availing funding from different sources under the Government of India
programmes namely, NH, NEC, NLCPR, PMGSY, CRF, EI and SPA will
continue to be the Government strategy to improve the road infrastructure
and providing connectivity.


65. Work of 4-Laning of Jorabat-Umúam section of NH-40 and Construction of
Shillong Bye-Pass have started. Contractor entrusted with the 2-laning of
Shillong-Nongstoin-Tura road has started the mobilization work. Detailed Project Report (DPR) for construction of 2-lane Jowai Bye-Pass (8.00
Km) amounting to ` 83.19 crore under SARDP-NE (Phase-A) has been
submitted to the Ministry of Road Transport & Highways for sanction. DPR
for widening to 2-Lane from Km 85/00 to 145/00 of NH 51 including
construction of Tura Bye-Pass is being submitted soon to the Ministry of
Road Transport & Highways.


66. There are 8 ongoing projects under NEC of which 6 are targeted for
completion this year. The scheme for improvement and widening of AMPT
road in West Garo Hills (0-73 km) with an amount of ` 90.64 crore has
started. Further 2 more scheme namely, Mairang Ranigodown-Azra road
(81.50 Km) and Jowai-Nartiang –Khanduli (55.00 Km) have been sanctioned
for a total amount of `167.36 crore. The DPR of another scheme namely
Rymbai-Bataw-Jalarpur road (63/00 KM to 110/00 Km) costing ` 97.94
crore has been submitted to the NEC Secretariat for sanction.


67. The Ministry of Tribal Affairs has recently sanctioned 3 schemes namely:
(i) Improvement, Metalling and Blacktopping including construction of
bridges No. 8/1 of Nongdaju-Darrangiri Road West Khasi Hills District,
(ii) Improvement, widening including Metalling and Blacktopping of Passyih-
Mynso-Mookynshain Road and (iii) Construction of suspension foot bridge
over River Kynshi in West Khasi Hills for a total amount of ` 16.69 Crore.


68. Of the 51 ongoing road works under PMGSY, 20 are targeted to be completed
during the year covering a road length of 80 kms and connecting 20
habitations. The balance 31 schemes are targeted for completion by March
2012. Further, 20 DPRs for a total amount of `119.00 crore for the 1st
batch under World Bank funded PMGSY RRP II have been submitted to
the Ministry of Rural Development which will provide connectivity to 20
habitations involving construction of 111.60 km of road. DPRs for providing
connectivity to remaining 495 eligible habitations which includes construction
of approximately 1500 Km of roads is under process for submission in
batches to the Ministry of Rural Development. Besides, DPR for upgradation
of completed PMGSY Stage II works is being submitted in batches to the
MORD for sanction under regular PMGSY Programme.


Transport
69. The Transport Department has taken steps for acquisition of additional land
for expansion of the runway of the Umroi airport and about 200 acres of
land has been acquired and handed over to Airport Authority. In order to
operationalise Balzek airport (Tura), the existing runway needs to be
expanded for which land has already been identified for acquisition.
Recently, the State Government has approved in principle the Tetelia –
Byrnihat and Byrnihat – Shillong railway lines. The Tetelia – Byrnihat project
is in the initial process of land acquisition and the Byrnihat – Shillong is
under alignment survey.
I propose a Plan outlay of ` 6 crore during 2011-12.


Urban Development
70. The main objective of Urban Affairs Department is to ensure orderly growth
of urban centres in the State. Improvement of civic amenities and
upgradation of infrastructure in the urban areas is the priority area. The
proposal for Annual Plan 2011-12 includes continuation of the flagship
programmes such as Jawaharlal Nehru National Urban Renewal Mission
(JNNURM), the Externally Aided Programme for Solid Waste Management
in Shillong and the State Plan Schemes like, Development of New Shillong
Township, Infrastructure Development of Urban Areas and Environmental
Improvement of Urban Slums.


71. Under the flagship programme of JNNURM the continuing projects like
Augmentation of Greater Shillong Water Supply Scheme (Phase-III),
Construction of Storm Water Drain for Shillong (Phase-I), Construction of
600 dwelling units for urban poor at Nongmynsong, Integrated Slum
Improvement of 5 Slums at Shillong, Construction of 910 dwelling units for
urban poor at Tura, Williamnagar and Nongpoh and Solid Waste
Management system at Tura and Nongpoh are expected to be completed.
I propose a Plan outlay of `160 crore during 2011-2012.


Housing
72. Sir, the Housing Department will continue to implement the Rural Housing
Scheme under which construction assistance in the form of three bundles
of CGI sheets are given to the houseless poor.
I propose a Plan outlay of ` 8 crore during 2011-2012.


Agriculture
73. A significant increase in the multiplication of foundation seeds of paddy by
the farmers of the State will be supplemented by provision of storage and
certification facilities. The successes achieved in the past few years in the
Training of Rural Educated Youth for Self-Employment in Farm-based
Activities programme will be further expanded to encourage more aspirants
to take up employment opportunities as entrepreneurs and service providers
in the agriculture and allied sectors. Water availability, especially in dry
spells, continues to be an area of concern. As such, setting up of small civil
structures, shallow tube wells and surface water pumping systems will be
expanded in the coming year, by accessing funds from RKVY, one of the
flagship programmes of the Government of India.


74. The State Government will implement a time-bound programme of organic
certification for selected spices and fruits, in order to access niche markets,
and thus enable famers to get premium on price for such produce.
I propose a Plan outlay of ` 76.64 crore during 2011-12.


Horticulture
75. The success of the horti-hubs would now need to be bolstered by allocating
adequate funds for their efficient management, maintenance and for scaling
up the volume of produce. The initiative of the Government in setting up of
cold chain networks in the State will be expanded and strengthened to meet
the growing market demands. Considering the successes in the horticultural
sector, the Thirteenth Finance Commission has awarded a special grant
under “State-specific needs” for ` 38 crore. Establishment of planting
material production hubs and setting up of new farmers markets would be
taken up under the programme in the coming year.
I propose a Plan outlay of ` 29.50 crore during 2011-12.


Water Resources
76. The present level of irrigation coverage in the State, which is 30915 hectares,
is only about 14% of the identified irrigation potential of 2.18 lakh hectares.
Large part of the net cropped area is still under rain fed condition. The
Government is intensifying its efforts to bring more area under irrigation coverage and that will have a positive impact on productivity and livelihood
of the people. This will also help in the promotion of horticulture and
floriculture.


77. With a view to ensuring holistic development of water resources, the
Government has created the Water Resources Department. The Department
is working on different thrust areas which include integrated water resources
management, formulation of water policy, basin planning, water quality
monitoring and management.


78. The core strategy of effective water resources management rests on people’s
participation and community mobilization. Accordingly, a new scheme for
awareness and capacity building for different stakeholders is being taken
up for implementation. It is also proposed to ensure adequate attention on
ground water development and water quality management.
I propose a Plan outlay of ` 121.85 crore during 2011-12.


Soil and Water Conservation
79. The Soil and Water Conservation Department promotes people’s participation
to conserve and develop natural resources. Major programmes being
implemented by the Department include 112 Projects under Integrated
Wastelands Development Programme and 47 participatory watershed
projects under Integrated Watershed Management Programme. To promote
sustainable and equitable agriculture and rural development through effective
credit support and innovative initiatives, 19 ongoing projects under Rural
Infrastructural Development Fund are being implemented. For providing
irrigation to agricultural lands with surface minor irrigation to enhance the
productivity of the land, 43 Accelerated Irrigation Benefits Programme
projects are being implemented. To protect hill slopes of jhum areas through
soil and water conservation measures on a watershed basis, 63 projects
are being implemented under Special Central Assistance – Watershed
Development Project in Shifting Cultivation Areas. To improve the
environment of Cherrapunjee and its surrounding areas, the Cherrapunjee
Ecological Project – Restoration of Degraded Land under Sohra Plateau
involving 45 villages including various components of soil and water
conservation measures is being implemented.
I propose a Plan outlay of ` 104 crore during 2011-12.


Veterinary and Animal Husbandry
80. The main focus is on the development of infrastructure, improvement of
animal health care, training centres for increasing production of meat,
milk, and eggs to rural farmers. Educated unemployed youth, cooperative
societies and Self Help Groups are being assisted through subsidy schemes
for self employment and self reliance. The major programmes during 2011-
12, are setting up of a new Vocational Training Centre in West Khasi Hills
District, strengthening the existing pig breeding farms at Kyrdemkulai and
Baghmara, and subsidy schemes for rural farmers, educated un-employed
youth, co-operative societies and Self Help Group. Assistance will also be
provided to Dairy Cooperative Societies.
I propose a Plan outlay of ` 27 crore under Animal Husbandry and ` 6.50
crore under Dairy sector during 2011-12.


Sericulture and Weaving
81. The Department will focus on upgradation of the seed farms to increase
production of quality silk worm seeds which can be distributed to the cocoon
growers in the rural areas, and also enhance reeling and spinning activities
for production of silk yarn. The Handloom Clusters will be assisted by
setting up common facility centres for pre-loom and post-loom processing,
as well as for imparting training to the weavers.
I propose a Plan outlay of ` 12 crore during 2011-12.


Fisheries
82. The Government is providing increased flow of funds for pisciculture with
the objective to achieve self sufficiency in fish production. Area expansion
in pond aquaculture has triggered a corresponding increase in demand of
fish seeds. This is proposed to be met by investing in modernization of the
existing Departmental Farms, as well as establishment of hatcheries in the
private sector. Simultaneously, the training needs of beneficiaries, especially
in improved methods of pisciculture, will be met to ensure profitable
implementation of the schemes. Modern cage culture facilities will also be
introduced in selected water bodies of the State with technical assistance
from experts in this field.
I propose a Plan outlay of ` 13 crore during 2011-12.


Forest
83. Sir, the efforts of the Forest Department are focused on sustainable utilization
of forest resources that will leave a rich wealth of green cover for generations
to come. The State’s forest cover as per the latest Survey Report stands at
17321 sq kms, which has shown an increase by 116 Sq. Km. as per
Forest Survey of India Report-2009.


84. From the funds available under the Thirteenth Finance Commission Award,
emphasis is on the preparation of working plans for the forest areas in all
the Districts. In the first phase, land resource and land use map would be
prepared with the help of satellite imagery.


85. The Department proposes to avail funds from the Central Government under
the National Afforestation Programme. Besides, creation of 800 hectares
of plantations through joint forest management is proposed. It would also
continue to promote collection of medicinal plants sector in the State.
I propose a Plan outlay of ` 43.35 crore during 2011-12.


Co-operation
86. The Cooperative activities in the State are now spreading in new sectors of
the economy. One of the activities of the Department is to ensure that the
Cooperative Societies are self reliant and active. Market linkages and
exposures are being consistently promoted and vigorously encouraged.
Government is committed to implement the recommendation of the Task
Force for Revival of Rural Cooperative Credit Institution. In recent years, a
good number of cooperative societies have shown marked signs of
improvement and are regularly contributing dividend to the State Government.
I propose a Plan outlay of ` 9 crore for Cooperation Sector and ` 1.20
crore for Food, Storage & Warehousing Sector during 2011-2012.


Tourism
87. Meghalaya has emerged as one of the major tourism destinations amongst
the North Eastern States. The Department has undertaken various steps
for improvement of existing tourism infrastructure as well as development
of new facilities at several tourist sites located throughout the State. The
objective is to provide necessary amenities to visiting tourists as well as create economic opportunities for the people. The Government is making
special efforts to develop destinations and circuits. Under the State Tourism
Policy, a special incentive scheme is envisaged with a view to encouraging
youths for promoting self employment.


88. Publicity Campaigns through the print and electronic media will be further
enhanced to maximize exposure and publicity mileage. Participation in
national fairs will be encouraged to increase tourist flow. Capacity building
involving stakeholders in the tourism sector is being conducted in
collaboration with the Institute of Hotel Management, Shillong under the
Hunar Se Rozgar Scheme. The Food Craft Institute at Tura is also
conducting courses for service providers, to improve hospitality services
to visiting tourists.
I propose a Plan outlay of ` 16.45 crore during 2011-2012.


Arts and Culture
89. The Arts & Culture Department will continue to promote and preserve the
cultural heritage of the State besides providing the necessary infrastructure
for cultural activities.
I propose a Plan outlay of ` 10 crore during 2011-2012.


Information and Public Relations
90. The Department of Information & Public Relations is the publicity wing of
the State Government and the nodal agency for dissemination of information
on policies and programmes of the Government. To further promote the
dissemination of information, Government is augmenting the fixed loud
speaker system and extending the same to the Sub-Divisional Headquarters.
Through participation in Trade Fairs and Exhibitions, the Department will
continue to project and promote the image of the State at the national and
international level. Government will also support seminars, workshops and
capacity building programmes for media personnels and journalists to
promote the growth of the fourth estate.
I propose a Plan outlay of ` 12 crore during 2011-2012.


Sports
91. Government is committed to creating sporting facilities that would help the
young generation compete with the best in the Country. During the current
year 12 ongoing schemes and 23 new schemes were taken up under the
State Plan for creation of additional sports infrastructure. The Department
promotes sports and youth activities by way of Grants-in-Aid to associations,
clubs, schools and NGOs.


92. The tennis complex at Polo is ready for use. Facilities at the JN Stadium
have been spruced up and the Stadium has been selected to host the
National League Football tournament in May 2011. The indoor sports halls
and 6 training halls have been completed, and allotted to various sports
associations. The 24th North East Games was successfully conducted at
Shillong in April, 2010. The State bagged 23 Gold, 14 Silver and 26 Bronze
medals and were placed 3rd overall. The Queen’s Baton Relay of XIX
Commonwealth Games 2010 was successfully conducted in the capital in
July 2010.
I propose a Plan outlay of ` 22.50 crore during 2011-12.


Information Technology
93. Accelerated growth of Information Technology is imperative to bring about
transparent, responsive and accountable governance. The sector continues
to receive the attention of the Government, especially in the era where
e-governance has touched each and every citizen. The vision of the
Department is to fully participate in the IT revolution so as to usher in
wealth creation, employment generation and prosperity to the citizens
of the State. Under the National e-governance Plan, the three pillars of
e-governance namely the Common Service Centre, State Wide Area
Network and the State Data Centre are all completed and are expected to
be operationalised soon.


94. The Department has completed the new IT building and additional facilities
for training and capacity building have been created. The Government has
tied up with NIIT, a renowned and reputed company for providing IT skill
up-gradation and empowerment to unemployed youth of the State free of
cost. The State has completed the first phase of training of 2000 youths in a tie-up with Symantec from Singapore and a number of youths have been
gainfully employed after the programme. Job fairs have also been arranged
during the year. The training programme under DOEACC continues with
special focus on training and skill up-scaling for Women. These training
programmes would continue for the coming financial year to ensure that
the youth gain more skill and employment opportunities.
I propose a Plan outlay of ` 10 crore during 2011-12.


General Administration
95. Sir, Government has developed additional infrastructure in Delhi and Kolkata.
The Meghalaya Houses at Vasant Vihar, Delhi and at Russel Street, Kolkata
will be operationalised soon. Within the State, the Circuit House at Nongstoin
will also be commissioned soon. The Circuit Houses at Nongpoh, Jowai,
Baghmara and Ampati are also being extended and improved. The State
Convention Centre at Shillong is nearing completion. Work on the
Governor’s Guest House at Tura is also progressing well.
I propose a Plan outlay of ` 36 crore during 2011-12.


Legal Metrology
96. Central Government has notified the Legal Metrology Act, 2009 and the
Meghalaya Legal Metrology (Enforcement) Rules, 2011 are being
finalized accordingly. Setting up of 4 new Working Standard Laboratories
have been proposed to the Government of India at ` 0.25 crore each to
further strengthen the Legal Metrology activities in the State.
I propose a Plan outlay of ` 0.85 crore during 2011-12.


Personnel
97. Sir, a priority area of the Government is the training and capacity building
for all levels of Government employees. With this objective in view Meghalaya
Administrative Training Institute has been conducting training and capacity
building for Government employees of different Departments. The Institute
will continue to strive for excellence in capacity building and enhancement
of delivery of service, efficiency and performance of Government employees
through training.
I propose a Plan outlay of ` 2.50 crore for MATI during 2011-12.


Printing and Stationery
98. Modernization of the Government Presses at Shillong & Tura is being taken
up in a phased manner. All outdated and non-economical machineries in
both the Presses are being replaced with ‘State-of-the-Art’ sophisticated
and cost effective printing machineries capable of giving high quality printouts
in very limited time.
I propose a Plan outlay of ` 3.80 crore during 2011-12.


Revenue and Disaster Management
99. The Department of Revenue and Disaster Management carries out surveys
and prepares records of land in the State. It also undertakes demarcation
of District and Sub-Division boundaries, Inter-State Boundaries and
International Boundary (Indo-Bangladesh) and printing of State and District
maps. The Government of India in the Ministry of Rural Development has
also provided funds under the National Land Record Modernization
Programme for purchase of modern survey instruments, comprehensive
survey work, preparation of land records, computerization and digitization
of records. The Department proposes to extensively carry out survey and
preparation of maps of the Government lands in the State capital as well as
in the Districts and Sub-Divisions. The survey and preparation of land
records and maps for a few akhinglands, town and villages in the Garo Hills
has been taken up in coordination with the Garo Hills District Council and
the work is in progress.


100. The Department also provides relief to the victims of natural calamities. The 13th Finance Commission has provided an amount of ` 14.65 crore as
contribution to the State Disaster Response Fund, which would replace the
present Calamity Relief Fund. Another amount of ` 5 crore has been
recommended by the Finance Commission for capacity building to deal
with disaster management. This would be released at ` 1 crore per annum
beginning with the current financial year.
I propose a Plan outlay of ` 3 crore during 2011-2012.


Programme implementation and Evaluation Department
101. Sir, keeping in view the importance of effective monitoring mechanism to
assess the actual implementation of developmental programmes in the State, particularly in the interior and remote areas, the Department of Programme
Implementation and Evaluation will pay specific attention for conduct of
evaluation & research studies, physical monitoring and review of selected
programmes, schemes, projects and monitoring of flagship programmes.


102. Third party evaluation studies on different developmental schemes have
been outsourced during the past few years. The Department proposes to
outsource a few more evaluation reports during 2011-12.
I propose a Plan outlay of ` 2.36 crore during 2011-2012.


Science and Technology
103. In the area of Science and Technology, a wide range of schemes are
proposed to be undertaken during 2011-2012. These schemes will be
implemented through three autonomous agencies viz. the State Council of
Science Technology and Environment; the Bio-Resource Development
Centre and the Shillong Science Centre. Main schemes to be implemented
by the State Council of Science Technology and Environment are
popularization of science programme, by conducting social environmental
fairs at State and block levels to encourage scientific temper among the
general public and particularly school children, introduction of appropriate
technologies by way of awareness camps, technology demonstration camps/
projects development programmes.
I propose a Plan outlay of ` 3.75 crore during 2011-12.


Tax and Non Tax Proposals
104. Sir, to further augment revenue collection in the State, Government proposes
the following measures:


(a) I propose to implement the Goods and Services Tax as and when the
constitutional amendment for its implementation is approved by
Parliament. Implementation of the new system of indirect tax, besides
subsuming all prevailing indirect taxes in the State, will enable the State
to impose a tax on services, which in the extant system is exclusively
within the domain of the Central Government.


(b) For enhancing the excise revenue, I propose to introduce the ad volarem
levy on beer, wine and rum drawn by license, enhance special duty on Bottle in Origin products from ` 450/- to ` 1,232/- per case and impose
import fee on Extra Neutral Alcohol imported by bottling plants at `1/
per bulk litre. The expected revenue would be about `1.05 crore.


(c) Sir, with regard to revenue collection by Forest Department, it may be
mentioned that royalty rates on timber products and minor minerals
were last fixed in 1998. A considerable time has elapsed since then.
Therefore, to streamline the royalties of the above forest products with
their current market prices, I propose to revise the royalty rates. Upward
revision of the export fees on forest products are also proposed.


(d) I also propose to take up the revision of royalty on coal with the
Government of India which is due in 2011-12.
Budget Estimates 2011-12


105. I am pleased to present the Budget for 2011-12 with a fiscal deficit of ` 419
crore, which is around 2.5% of GSDP and ` 43 crore more than that of
2010-11.


106. The estimated total receipts in 2010-11 were ` 4895 crore of which the
revenue receipts were ` 4394 crore and capital receipts were ` 501crore.
Excluding borrowings and other liabilities, the total receipts stood at ` 4414
crore. For 2011-12, I have estimated the total receipts at ` 6207crore, an
increase of ` 1312 crore or 26% over the current year. The revenue
receipts are estimated at ` 5602 crore and capital receipts at ` 605 crore.
Excluding borrowings and other liabilities, the total receipts in 2011-12 are
estimated to be ` 5624 crore. Last year I had stated that almost half of the
revenue receipts are being contributed by Plan Grants. This year Plan
Grants from the Centre is expected to be ` 3078 crore, an increase of 785 crore from that of the current year. I have estimated the State’s Own
Revenue at ` 980 crore, an increase of ` 257 crore from that of the
current year.


107. In 2010-11, the total expenditure was budgeted at ` 4970 crore including
repayment of loans and other liabilities. Excluding repayments of loans
and other liabilities, the total expenditure was estimated at ` 4790 crore.
For 2011-12, I have estimated the total expenditure at ` 6264 crore, an
increase of 26% over the current year. Excluding repayment of loans
DPS, Shillong.
and other liabilities, the estimated total expenditure during 2011-12 will
be ` 6043 crore, of which revenue expenditure is estimated at ` 4973
crore and capital expenditure at ` 1070 crore.


108. I have estimated the Plan expenditure including Centrally Sponsored
Schemes, Central Sectors Schemes, NEC and NLCPR for 2011-12
at ` 3430 crore, an increase of 32% over the current year’s estimate
of ` 2582 crore. Inclusive of these schemes, I propose an outlay of
` 600 crore for Education, ` 524 crore for PWD, ` 477 crore for
Agriculture and Allied sectors, ` 471 crore for Power, ` 234 crore
for Health, ` 194 crore for C&RD and ` 174 crore for PHE.


109. The total non-plan expenditure for 2011-12 has been estimated at ` 2835
crore, an increase of 18.7 % from the budget estimate of 2010- 11. Interest
payment during 2011-12 is estimated at ` 291 crore and pension payment
at ` 236 crore. Salary payment is estimated at around ` 1393 crore. I have
proposed a non-plan budget of ` 440 crore for Education, ` 333 crore for
Police, ` 221 crore for PWD, ` 193 crore for Agriculture and Allied sectors,
and ` 116 crore for Health.


Mr. Speaker Sir, with these words I commend the Budget to this House.

Source: meghalaya.nic.in/budget_speech.pdf