Nagaland’s economy is expected to grow by 7.73 %

March 4, 2024 22 Views No Comment

Our Correspondent
Kohima | March 4

As per advance estimate of Gross State Domestic Products (GSDP) for the year 2023-24, Nagaland’s economy is expected to grow by 7.73 percent at constant price and 10.81 percent at current price respectively.

The economy of the State continues to move along a path of recovery after the Covid Pandemic of 2020-21, stated the Nagaland Economic Survey 2023-2024 tabled by Nagaland Chief Minister Neiphiu Rio in the recently concluded 4th session of the 14th Nagaland Legislative Assembly in Kohima.

The Survey is done annually the Directorate of Economics & Statistics, Government of Nagaland.

In absolute figure, the quantum of the economy in real terms is estimated to have increased from Rs.19903 crore in 2022-23 (Provisional) to Rs. 21442 crore in 2023-24 (Advance Estimate).

Correspondingly, the quantum of the economy in nominal terms is estimated to have increased from Rs. 35705 crore in 2022-23(P) to Rs. 39567 crore in 2023-24 (AE).

During 2023-24 (AE), the Per Capita Income (PCI) of the state is estimated to grow by 11.20 percent thereby raising the PCI to Rs 157641 from Rs.141759 achieved in 2022-23.
The increase in PCI reflects the growing domestic consumption potential of the state.

Public Finance
During 2023-24 (Budget Estimates), the state fiscal deficit is estimated to remain at 2.83 percent of GSDP down from 5.71 percent during 2022-23 (Revised Estimates). This is in line with the state medium term fiscal policy statement as envisaged in the budget for 2023-24 limiting the fiscal deficit to 5.45 percent of GSDP during 2022-23 and 3 percent in 2023-24.

The total receipt of the State Government which comprises of capital receipts and revenue receipts is estimated to increase by 0.11 percent only during 2023-24 (B.E). In absolute amount, the total receipts is estimated to increase to Rs. 23145.65 crore in 2023-24 (B.E) from Rs. 23121.12 crore in 2022-23 (R.E). Percentage wise, during 2023-24 (B.E) the respective share of revenue receipts and capital receipts in the total receipts was 68.18 percent and 31.82 percent.

On the expenditure front, Budget 2023-24 estimated total expenditure on consolidated fund at Rs. 23085.66 crore showing a decrease of -1.91 percent from the 2022-23 (R.E) estimates of Rs. 23536.15 crore.

The decrease in total expenditure during 2023-24 (B.E) has arisen mostly from the decrease in the capital expenditure by-15.14 percent.

Salary & wages which accounts for the largest amount within revenue expenditure has increased from Rs. 6280.11 crore in 2022-23 (R.E) to Rs. 7186.90 crore in 2023-24 (B.E).

On percentage basis, salary & wages which alone account for 44.46 percent of revenue expenditure in 2022-23 (R.E) is estimated to rise to 47.60 percent in 2023-24 (B.E). As a percentage of total expenditure on consolidated fund, salary and wages accounts for 26.68 percent in 2022-23 (R.E) and 31.13 percent in 2023-24 (B.E).

The total outstanding liabilities of the state as on 31 March 2023 is estimated to increase from Rs. 12425.42 crore in 2021-22 (Actual) to Rs. 13621.79 crore in 2022-23 (R.E). As against the medium term fiscal policy statement target to limit the total liabilities at 41.27 percent of GSDP in 2021-22 and 41.63 percent of GSDP in 2022-23 (R.E), the state total liabilities as a percentage of GSDP is estimated at 39.70 percent in 2021-22 (actual) and 38.15 percent in 2022-23 (R.E) respectively.