With the Budget Session of 2024-25 looming on 26 February 2024, anticipation is building among stakeholders regarding the fiscal plans and policy directions of the Rio government.
At the forefront of expectations is a comprehensive overhaul of the existing Sports Policy, as announced by the Chief Minister in November 2023. It is worth noting that the Rio government allocated Rs 2,046 crore for Education, Sports, Arts, and Culture in the fiscal year 2021-22.
This allocation saw a steady rise in subsequent years, with Rs 2,502 crore allotted in 2022-23 and a further increase to Rs 2,722 crore in the budget estimate for 2023-24.
Sources close to the ruling NDPP and BJP suggest a heightened focus on sports this season, spurred by glaring ‘loopholes,’ particularly in infrastructure, exposed during the recent Nagaland Olympics and Paralympics Games. Instances where games were held on private school campuses have reportedly raised questions about the government’s commitment to providing adequate sporting facilities.
Moreover, there is recognition of untapped potential among athletes needing proper nurturing. This requires investments in grassroots infrastructure and coaching. The state is also considering sending athletes from Nagaland as part of the Indian contingent to the upcoming World Olympics.
In addition, discussions may arise regarding the cabinet decision to establish a sports battalion, although its implementation remains pending. “The State Cabinet has also decided that a sports battalion will start up, but it has not been implemented so far, so these things may be discussed,” the source informed.
Another source close to the ruling government said that although emphasis will be given to all sectors, creating vacancies in the government sector is not on the agenda, as state employment under the government sector is already in excess. “They will focus on the youth, but it will be through departments like Industry and Commerce, the Department of Youth & Resources. They may conduct flagship programs, skill training, and courses on entrepreneurship for a few months,” the source added.
Reflecting on the previous fiscal year, the Rio government introduced various revenue-enhancing policies, including exploring liquor sales to foreign nationals and initiating state lotteries. Plans for oil exploration in the Disputed Area Belt are also underway, pending negotiations with Assam and the central government.
Despite these initiatives, significant policy implementations are pending, such as the computerization of the pension sector aimed at curbing fraudulent payments and reducing pension expenditures.
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According to Annual Financial Statement, Nagaland Budget 2023-24 tabled by the Rio administration, the total revenue receipts for the fiscal year 2023-24 was estimated to reach Rs 15,781 crore.
Of this substantial sum, a significant portion—Rs 13,831 crore, to be exact—was expected to be sourced from the central government, representing a significant 88% of the total revenue. The remaining Rs 1,951 crore, constituting 12%, was slated to be raised by the state through its own resources.
Central funding to Nagaland will primarily comprise the state’s share in central taxes and grants. Notably, Nagaland’s share in central taxes was expected to witness an 8% increase from the previous fiscal year, totaling Rs 5,812 crore. Similarly, grants from the center are set to rise by 8%, reaching Rs 8,019 crore for the fiscal year 2023-24. These increments are attributed to the bolstering of grants for central sector and centrally sponsored schemes.
Furthermore, Nagaland’s own tax revenue was projected to hit Rs 1,570 crore during the same period. State GST stands out as the leading source of this revenue, followed closely by Sales Tax, Taxes on Vehicles, and Taxes on Duties on electricity.
Recently, the Department of Power, Government of Nagaland has filed a petition seeking approval for its Annual Revenue Requirement (ARR) and Tariff Proposal for the fiscal year 2024-25 before the Nagaland Electricity Regulatory Commission (NERC).
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Under the proposed changes, the charges for energy consumption in the Domestic category are set to undergo revision. Previously ranging from Rs 5.35 to Rs 7.35 per kilowatt-hour (kWh) for consumption between 0 to 250 kWh, the proposal for FY 2024-25 suggests a shift to Rs 5.60 to Rs 7.45 per kWh for the same consumption range.
Similarly, alterations are anticipated in the Industrial category for energy consumption exceeding 500 kWh up to 5000 kWh. Formerly priced between Rs 6.50 to Rs 7.65 per kWh, the proposed adjustments would see these charges range from Rs 6.80 to Rs 7.85 per kWh indicating that the government wishes to increase its revenue from duties on electricity.
The forthcoming Budget Session of 2024-25 is also expected to discuss the contentious move by the center to abolish the Free Movement Regime, along with particular attention on sports infrastructure, grassroots development, and other economic reforms such as power and skill development for the youth.
