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1. Hon'ble Speaker Sir, I Now Rise to Present the State Budget for The

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1. Hon'ble Speaker Sir, I Now Rise to Present the State Budget for The 1. Hon’ble Speaker Sir, I now rise to present the State budget for the financial year 2014 – 15. 2.1 Economic Environment Before I proceed to present my budget proposals, I would like to apprise the Hon’ble Members of this August House about the overall economic environment and financial position of the State. The global economic growth came down from 3.2% in 2012 to 2.9% in 2013. Growth rate of India, however, has shown some improvement to 4.7%, in 2013-14 from 4.5% in 2012-13. I am happy to inform this August House that the projected growth rate of Assam for 2013-14 is 6.88% which was 5.87% for 2012-13 as per the latest Central Statistical Organization estimates. This is considerably higher than the national average and many other States. Contrary to the trend elsewhere of expenditure compression, our State is in a comfortable position to add further momentum to development activities. This has been possible because of our prudent financial management. According to advance estimate for 2013-14, the per capita income has registered a growth rate of 4.63 percent at constant prices and 14.53 percent at current prices in 2013-14 over the previous year. Our per capita Net State Domestic Product stood at Rs.46,354 in 2013 – 14 compared to National per capita income of Rs. 74,920 during the same period. Therefore, all out effort is required to be taken to bring our per capita income to the National level. 2.2 State Finances Our State finances have been stable for about last ten years. The basic financial parameters of revenue and fiscal deficits have improved significantly. We are able to disburse salary and pension in time and flow of fund for investment has remained smooth. We have been able to attain a revenue surplus of Rs.1554 Crore in 2012 – 13. According to CAG Report for the Financial Year 2012-13 our fiscal deficit was 1.06% of GSDP as against FRBM target of 3%. It may be mentioned that Government of India’s fiscal deficit for the same year 1 was 4.8% of GDP. Similarly our debt GSDP ratio as on 31.3.2013 was 22.91%, which is well below the FRBM target of 28.4%. The tax revenue of the State increased two-fold in four years from Rs.4,150 crore in 2008-09 to Rs.8,250 crore in 2012-13, indicating an average annual growth rate of 19.76%. While commending the fiscal management of the State Government CAG has mentioned in its report that “ ….the State witnessed a marked improvement in key fiscal indicators. The improvement in the fiscal situations during the current year was achieved by the State by pursuing the fiscal correction and consolidation process under a rule based fiscal framework coupled with larger devolution and transfer by the F.C-XIII…….” As per 6 th Economic Census ending March,2013 Assam has achieved the following distinctions – (1) Among the major States, Assam has obtained first position in creating employment and employment generating establishment and fastest growth in non agricultural and non governmental employment sector (excluding Crop production, Public Administration, Defence, Paramilitary or Security Services). (2) In the growth of employment Assam has ranked No.1 among the major states achieving 85.55% employment in rural areas and 65.11% in urban areas. (3) Assam’s total export of commodities from various LCS/ICD etc. rose from Rs.1469.73 crore in 2009 – 10 to Rs. 2465.56 crore in 2013-14. (4) Assam has ranked first position in providing small loan/micro credit through Government programmes such as PMEGP/KVIC in the whole country during 2013-14 by achieving a growth of 179.35%. However, the overall growth prospects at national level remains an area of concern. The Central Government has constituted the Seventh Pay Commission. We shall also have to revise our pay structure in consonance with the Central Pay scales in due course of time. Due to these developments and other unavoidable circumstances we will have to be extremely careful to maintain a healthy and stable financial regime. 2. 3 Annual Plan Hon’ble Members are aware that Assam’s 2014-15 Annual plan discussion have not yet taken place and hence the plan size is yet to be finalized. However, for implementation of plan schemes, a detailed tentative plan outlay of Rs.21811.65 Crore for 2014-15 has been worked out. I would like to inform the August House that the Centrally Sponsored Schemes have been restructured by Government of India. From current year, the Central share under the Centrally Sponsored 2 Schemes will be routed through the consolidated fund of the State. Accordingly the central share for Centrally Sponsored Schemes have been provided in the Budget. Under the plan programmes, priority will be given for employment generation, skill development and increase in income of the people, so that the purchasing power goes up. We shall strive for creation of an inclusive society by giving special focus on marginal and deprived section of the society. 2.4 Externally Aided Projects Assam as a special category State gets external assistance through Government of India as 90% grant and 10% loan. This also helps us to get acquainted with the global best practices and helps in transfer of technology. In 2014 -15 plan budget an amount of Rs.2015.74 crore has been earmarked for implementation of 13 Externally Aided Projects in the State; which include- Assam Agricultural Competitiveness Project, Assam State Road Project, Assam Integrated Flood & River Bank Erosion Risk Management Project, Assam Power Sector Enhancement Investment Programme, Guwahati Water Supply Project, Assam Urban Infrastructure Investment Programme, Assam Project on Forest and Bio- diversity Conservation, and Rural Water Supply and Sanitation Project. 2.5 Rural Infrastructure Development Fund Projects and Assam Infrastructure Financing Authority Scheme. Last year NABARD sanctioned Rs.481.34 crore for different projects of PWD(R), Water Resources, Animal Husbandry and Veterinary, Fishery, Irrigation, Soil Conservation & Sericulture Department. My Government is giving lot of thrust in rural development, specially development of rural infrastructure. For this objective we are also taking loan from NABARD. Till date AIFA has agreed in principle to sanction about Rs.1164 crore for Lakwa Replacement Power Project, Lower Kapili Hydro Power Project, Augmentation of 132 KV substations and improvement of police infrastructure. An amount of Rs.5.20 crore has also been approved for appointment of consultancy services for feasibility study against construction of a 6-lane bridge over the Brahmaputra connecting Narengi with Kuruwa. Rs.29.59 crore has already been released by AIFA 3 for land acquisition of the Indian Institute of Information Technology (IIIT), Guwahati. 2.6 Institutional Finance. (i) Government of Assam has been implementing the Interest Subvention Scheme on crop loan to the farmers since 2006 – 07 in order to make the crop loan available to the farmers at lower interest. The rate of interest relief to the farmers was enhanced from 2% to 3% from the year 2009 – 2010 and the maximum amount of crop loan up to which the interest relief will be extended was enhanced from Rs.20,000 to Rs.35,000 from the year 2011 – 12. During 2013 – 14, an amount of Rs.3.17 crore was released to NABARD for disbursement of claims by banks under the scheme and since 2006-07 till 2013 – 14, a total of Rs.18.27 crore has been released. Government proposes to continue the interest relief scheme during 2014 – 15. (ii) Hon’ble Prime Minister of India is formally announcing the ‘Sampoorn Vittiya Samaveshan Mission’ in this Independence Day in order to give a new thrust to the Financial Inclusion Plan. Under this new plan, both rural and urban areas will be targeted and the project will be implemented in a Mission Mode throughout the Country. The programme will be launched at National, State and District levels shortly. Under this programme, each household will be having at least one bank account. These accounts will offer overdraft facility after satisfactory operations. Further, these bank accounts would become the single point for receipt of all Government benefits. The State Government will also implement the project for which Implementation Committees at the State and District level will be constituted. 3.1 Assam State Finance Commissions Transfer of fund to PRIs and ULBs recommended by the Fourth State Finance Commission(SFC) for the current financial year 2014-15 is Rs.1090 crore consisting Rs.550 crore as tax devolution and Rs.540 crore as grant. The Fourth SFC also recommended a revised staffing pattern for the panchayats and municipalities at all levels including the GMC. Government has accepted these recommendations. In order to ensure that the terms of the Central and State Finance Commissions are in synchronization, Government of Assam constituted the Fifth SFC well ahead of time on 05.03.2013. The Commission is expected to submit its report by 31 st August, 2014. 4 3.2 Central Finance Commission The Thirteenth Finance Commission had recommended a total transfer of Rs.57, 832.70 Crore to the State during the five year period from 2010 to 2015. This includes Rs.52, 620.60 Crore as State’s share of Central Taxes and Rs.5212.10 Crore as grants-in-aid. The State has so far received Rs.39,427.92 Crore as share of Central Taxes and Rs. 3076.52 Crore as grants, which includes Rs.300.00 Crore rewarded as special incentive in recognition of our prudent and efficient financial management.
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