Steady increase in Nagaland GSDP during last five years

March 24, 2022 89 Views No Comment

State’s growth rate higher than all India GDP

Our Correspondent
Kohima | March 24

The Nagaland’s state GSDP increased by Rs 3,227.79 crore (11.82%) from Rs 27, 283 crore in 2018-19 to Rs 30, 508 crore in 2019-20. This was stated in the State Finance Audit Report of the Comptroller and Auditor General of India for the year ending March 31, 2020, tabled at the 11th session of 13th Nagaland Legislative Assembly (NLA) here on March 22.

During the last five years, there was a steady increase in GSDP from Rs. 19, 524 crore in 2015-16 to Rs. 30, 508 crore in 2019-20.

The GSDP growth rate for Nagaland (11.82%) was higher than all India GDP growth rate (7.21%) in 2019-20.

Tertiary Sector was the major contributor of GSDP during the year with 66%. Primary Sector was the second largest contributor with 90% while Secondary Sector (12%) and Subsidies and Taxes (2%) were third and fourth respectively.

The report stated that the state’s revenue receipts (Rs. 11, 423.29) core decreased by 0.12% (Rs. 14.12 crore) over the previous year (Rs. 11, 437.41 crore), mainly due to decrease in state’s share in Union Taxes and Duties (13.85%).

The state’s own tax revenue (Rs. 958.23 crore) increased by 12.21% over the previous year (Rs. 846.43 crore). State’s share of Union Taxes and Duties (Rs. 3, 267.08 crore) in comparison to the previous year (Rs. 3, 792.41 crore) decreased by Rs. 525.33 crore (13.85%).

Revenue expenditure was Rs. 11, 637.02 crore and it increased by 6.57% (Rs. 717.04 crore) over the previous year (Rs. 10, 919.98 crore).

The state’s Revenue Surplus during the last four years turned into Revenue Deficit which was Rs. 213.73 crore for the year, mainly due to decrease in Revenue Receipts (0.12%) and increase in Revenue Expenditure (6.57%).

Capital expenditure which was Rs. 1, 206.32 crore for the year, decreased by 24.39% (Rs. 389.24 crore) over the previous year’s expenditure (Rs. 1, 595.56 crore).

The report stated that it was mainly due to decrease in capital outlay under General Services (60.49%) and Economic Services (31.04%).

The state’s total expenditure for the year was Rs. 12,852.60 crore, which increased by 3% (Rs. 331.79 crore) over the previous year (Rs. 12, 520.81 crore).

It was mainly due to increase in Revenue Expenditure (Rs.717.04 crore) offset by decrease in Capital Expenditure (Rs. 389.24 crore).

The State’s Fiscal Deficit (Rs. 1, 428.22 crore) increased by 31.96% (Rs. 345.90 crore) as compared to previous year (Rs. 1, 082.32 crore).

The report stated that the government failed to meet the projections made under Nagaland FRBM Act during the year as it could not achieve surplus on Revenue Account and the Fiscal Deficit- GSDP ratio and Outstanding Debt- GSDP ratio were above the ceilings prescribed under the Act.

The report stated that due to short contribution to the National Pension Scheme (NPS) and misclassification of expenditure, the Revenue Deficit was understated by Rs. 33.80 crore and fiscal deficit by Rs. 30.51 crore.

Recommendations
The Report stated that the state government needs to keep up the trend of Own Tax Revenue collection achieved during 2019-20 by focusing on other potential areas, apart from SGST to have a sustained increased in Own Tax Revenues.

The state government needs to increase its Capital Expenditure and give more impetus to asset creation for sustained economic growth.

The state government needs to make effort to achieve the projections on major fiscal parameters, made in the Nagaland FBRM Act trough prudent financial management.

Source: https://morungexpress.com/steady-increase-in-nagaland-gsdp-during-last-five-years