JHADC CEM tables deficit budget of Rs.13.15 crore

Eddiana ShyllaMarch 25, 2021

The Chief Executive Member, Jaintia Hills Autonomous District Council (JHADC) Thombor Shiwat tabled the deficit budget for the year 2021-22 of Rs.13.15 crore on Thursday.

“I am to say that the proposed budget estimates for the ensuing financial year 2021-22 bear an estimated receipts of Rs 173,50,30,000 as against the estimated expenditures of Rs 186,65,21,300 casting a deficit of Rs 13.15 crore,” Shiwat said in his budget speech.

He said the deficit budget is attributed to various reasons which include:

The increasing cost of establishment due to the annual increment of pay of employees.
Liabilities of the arear revise pay of 40% of the members and employees which is not able to clear during the current financial year and carried over as committed liabilities to the coming financial year.
Prices escalation on contingency expenditure.
Economic instability has impacted the revenue collection of the Council.

“As a developed country said, It is preferable to have a deficit budget than a balance or surplus budget, for the deficit budget motivates each other to join hands and work together to overcome the deficit. I, also on behalf of the Executive Committee, call upon each and every member and employees to join hands and to render our best services to the council to overcome the deficit of our budget,” he said.

He also informed the house that the council has received the shares from the State Government from major minerals is Rs. 42.48 crore, minor minerals Rs. 7.28 crore and taxes and mother vehicles Rs. 8.57 crore. He also said that the council on receiving the due share along with other revenues collected in receipt cell paid the monthly salary of its Members and Employees including Pensions for 8 months from October 2019 to May 2020.

Apart from this, he said EC has also refunded an amount of Rs 7 crore to the civil works department against the temporary loans of Rs 14 crore borrowed during the financial year 2019-20 adding the outstanding amount of Rs 7 crore will be refunded as and when the fund position of the council improves.

He also mentioned that the suspension of the mining and transportation of coal in the state has had an unfavourable impact on the revenue receipts of the Council. But he hoped that the mining of coal in the state may resume back as per the Supreme Court judgement on July 3rd, 2019.

On reaching the reduction of expenditure of the financial year, he mentioned the steps taken are to reduce posts have been reduced from 1480 to 1470. He said that in the council, to minimize the fresh appointment and reduce the financial crisis, the House has passed a resolution to remove all extraordinary grade III and IV posts.

Furthermore, he said that to minimize the expenditure posts like Post of Planning Adviser, Officer on special duty, Co-Chairman Planning Board, Account Officer CWD are all removed.

Concerning the development and construction of the Iawmusiang Market, the executive committee has raised the issue with the State Government that the construction of the market will be resumed by the government.

For the development activities, the C.E.M mentioned that the Government of India through the 15th Finance Commission has released a united grant of Rs. 6.82 crore for the implementation of all schemes/ project under this Head will be taken up shortly.

He informed the August House that it will be the last year that the budget is prepared in this manner. Based on the recommendation of the Comptroller and Auditor General Govt. of India, the Government of Meghalaya and the Office of Accountant General Meghalaya will prepare the budget by using List of Major and Minor Head (LMMH) for both receipts and expenditures.