Main Features of budgets of Arunachal Pradesh

Constitutional Provision of Budget of State

As per Article 202 of the Constitution of India the Governor of a State shall, cause to be laid before the House or Houses of the Legislature of the State a Statement of the estimated receipts and expenditure of the State for a financial year. This estimated statement of receipt and expenditure for a financial year named in the Constitution as the “Annual Financial Statement” is commonly known as “Budget”

A-202 Annual Financial Statement                                                                              

1. The Governor shall in respect of every financial year cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for that year, in this Part referred to as the “annual financial statement”.
2. The estimates of expenditure embodied in the annual financial statement shall show separately—
   1. the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of the State; and
   2. the sums required to meet other expenditure proposed to be made from the Consolidated Fund of the State; and shall distinguish expenditure on revenue account from other expenditure.
3. The following expenditure shall be expenditure charged on the Consolidated Fund of each State—
4. the emoluments and allowances of the Governor and other expenditure relating to his office;
5. the salaries and allowances of the Speaker and the Deputy Speaker of the Legislative Assembly and, in the case of a State having a Legislative Council, also of the Chairman and the Deputy Chairman of the Legislative Council;
6. debt charges for which the State is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt;
7. expenditure in respect of the salaries and allowances of Judges of any High Court;
8. any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal;
9. any other expenditure declared by this Constitution, or by the Legislature of the State by law, to be so charged.

A- 203 Procedure in Legislature with respect to estimates

• So much of the estimates as relates to expenditure charged upon the Consolidated Fund of a State shall not be submitted to the vote of the Legislative Assembly, but nothing in this clause shall be construed as preventing the discussion in the Legislature of any of those estimates.
• So much of the said estimates as relates to other expenditure shall be submitted in the form of demands for grants to the Legislative Assembly, and the Legislative Assembly shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein
• No demand for a grant shall be made except on the recommendation of the Governor.

A- 204 Appropriation Bills

(1) As soon as may be after the grants under article 203 have been made by the Assembly, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of the State of all moneys required to meet—

1. the grants so made by the Assembly; and
2. the expenditure charged on the Consolidated Fund of the State but not exceeding in any case the amount shown in the statement previously laid before the House or Houses.

(2) No amendment shall be proposed to any such Bill in the House or either House of the Legislature of the State which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of the State, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final.

(3) Subject to the provisions of articles 205 and 206, no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with the provisions of this article.

A- 205            Supplementary, additional or excess grants

1. The Governor shall—

1. if the amount authorised by any law made in accordance with the provisions of article 204 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year, or
2. if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year,cause to be laid before the House or the Houses of the Legislature of the State another statement showing the estimated amount of that expenditure or cause to be presented to the Legislative Assembly of the State a demand for such excess, as the case may be.
   2. The provisions of articles 202, 203 and 204 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or grant.

A- 206 Votes on account, votes of credit and exceptional grants

1. Notwithstanding anything in the foregoing provisions of this Chapter, the Legislative Assembly of a State shall have power—

1. To make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in article 203 for the voting of such grant and the passing of the law in accordance with the provisions of article 204 in relation to that expenditure;
2. To make a grant for meeting an unexpected demand upon the resources of the State when on account of the magnitude or the indefinite character of the service the demand cannot be stated with the details ordinarily given in an annual financial statement;
3. To make an exceptional grant which forms no part of the current service of any financial year; and the Legislature of the State shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of the State for the purposes for which the said grants are made.
4. The provisions of articles 203 and 204 shall have effect in relation to the making of any grant under clause (1) and to any law to be made under that clause as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure.

Arunachal Pradesh State Budget of Arunachal Pradesh

• The Gross state domestic product is estimated to be Rs 21,414 crores in 2016-17, growing from a level of Rs 11062.69 crores five years ago.
• There is a slow but perceptible shift of economic activity from the primary sector to the tertiary sector in the last few years. Nonetheless, the primary sector contributed to 38.21% of GSDP at constant prices, while the tertiary sector contributed to 40.28% of GSDP.
• The Share of Central taxes grew from actual receipt of Rs 7075.58 crores in 2015-16 to Rs 8388.30 crores in revised estimates of 2016-17.
• The state’s own tax revenue in the revised estimates of 2016-17 was Rs 650.63 crores as against actual receipt of Rs 535.07 crores in 2015-16, growing at 21.59%. Nearly 94% of the tax revenue was collected by the Tax and excise department.
• The non-tax revenue receipt in the revised estimates of 2016-17 is estimated at Rs 506.79 crores as against an actual collection of Rs 392.12 crores in 2015-16, showing a growth of 29.2%.
• The fiscal deficit targets laid out in the Fiscal Responsibility and Budget Management Act 2006 and state had a fiscal deficit of 0.4% of GSDP in revised estimates of 2016-17, which is well within the 3% obligation as per the FRBM Act. For the next financial year, the fiscal deficit target of the state is 2.83% of GSDP.
• The outstanding borrowing and debt liability of the state was pegged at 22.26% of GSDP in 2015-16 which is estimated to be 21.94% of GSDP in the revised estimates of 2016-17, which is well below the prescribed norm of 25%.
• The underpinning philosophy of the budget draws upon the following 15 broad themes in Arunachal Pradesh:

1. Enhance transparency through governance reforms.
2. Empower the youth and squarely address the twin challenge of deficit in skills and jobs
3. Transformation of rural farm economy
4. Unlock the latent potential of land
5. Introducing policy measures which stimulates entrepreneurship
6. Public investments to have a balanced regional spread
7. Overhaul the educational system in the state
8. Create an effective and affordable health services delivery model
9. Create a social security net for the elderly , widows and the disabled
10. Take measures for women empowerment
11. Bridge the infrastructure deficit.
12. Revitalize the hydro power sector and tourism
13. Augment the internal resource generation capacity.
14. Effective Law and Order management
15. Follow a Sustainable growth path in harmony with environment

Major Points

Governance Reforms

• The Budget Estimates of 2017-18 has done away with the distinction of Plan and Non Plan and classifies the receipts and expenditure only in Capital and Revenue heads
• To harmonize the functioning of the Planning and Finance department into an integrated Department of Finance and Investments headed by the Development Commissioner, with three different wings: Investment and Planning division, Budget division and Economic Affairs division. This will help in developing a holistic perspective of planning, resource mobilization and expenditure.
• The Centrally sponsored schemes will be implemented on the Public Financial Management System platform. The Finance department will make online transfers of money to the current accounts of concerned department opened for each Centrally Sponsored Scheme expeditiously and the departments in turn will transfer money directly to the bank accounts of beneficiaries for beneficiary oriented schemes. This will be a path breaking reform in streamlining the manner in which CSS schemes are currently administered and usher in greater simplicity in transactions as well as transparency.
• The trinity of JAM – Jandhan, Aadhar and Mobile will be used for delivery of citizen services and moving towards a cashless and paperless economy–over 13 lakh bank accounts in Arunachal Pradesh of which nearly 2.2 lakh are Prime Minister Jandhan Yojana accounts. Nearly 1.4 lakh bank accounts are seeded with Aadhar
• E Office will be made fully functional within this financial year for all departments in the Secretariat and steps will be initiated for ushering in the E office platform in the districts and the Directorates.
• A computerized human resource management system will be introduced for all government employees which will integrate details of salaries, deductions, loans, increments etc.
• Computerization of treasuries will be completed this year and an integrated on line Budget and expenditure management system will be rolled out which will streamline the functioning of the finance department.
• A Chief Ministers dashboard will be created on an electronic platform which will track progress of key projects, including budget announcements, across the state through a regular video conferencing interface with all Deputy Commissioners
• Stipends of students, scholarships, old age pensions, salaries of teachers of SSA, RUSA and RMSA will be paid on a direct benefit transfer mode directly into their bank accounts.

Employment and Skills of Budgets of Arunachal Pradesh

• To establish a Skill University in Arunachal Pradesh on a PPP framework.
• Aim to train 9000 youth in the coming financial year under Pradhan Mantri Kaushal Vikas Yojana with minimum 70% employment guarantee and an outlay of Rs 24 crores. Four ITI’s will be made operational next year: at Sagalee, Ziro, Kanubari and Pangin. One model ITI will be established at Yupia with an outlay of Rs 2.5 crores.
• Chief Minister’s Bunkar Yojana
• Chief Minister’s Swalamban Yojana. A back ended 30% Capital investment subsidy will be provided for small and medium enterprises on loans ranging from Rs 10 lakh to Rs 1 crores excluding land and building.

Agriculture and allied Sectors of Budgets of Arunachal Pradesh

• To achieve self-sufficiency in food grains: Rice, other coarse cereals and Pulses production by 2020 and total Rice sufficiency by 2023 from the present day deficit levels of 27%
• To promote organic Agriculture movement by producing organic plant nutrients and other inputs to reduce external dependence.
• To establish Four Tea & Rubber nurseries -Rubber Nurseries at Govt. Farm Kherem and Sonajuli and Tea nurseries at Govt. Farm Bolung and Jumlo to be under technical supervision of Agriculture Dept. A sum of Rs.10.00 cr is earmarked for this purpose during 2017-18.
• An allocation of Rs 3 crores is being made under the Chief Minister’s Krishi Rinn Yojana.
• A state level Agriculture Information Hub cum Farmers’ Hostel will be established at Naharlagun to serve as the node for knowledge and resource sharing for agriculture and allied sectors.This will become the central resource pool with information for farmers in both audio-visual as well as electronic mode. It will be equipped with state of the art agri-information devices for the farming community and also provide accommodation for farmers and Extension workers. An initial allocation of Rs 5 crores is being proposed for this purpose during 2017-18.
• Establishment of State Horticulture Research and Development Institute (SHRDI) under Department of Horticulture at Itanagar in the year 2014 to provide sustained technical support for our farmers.
• To give one time Corpus Fund of Rs. 5 crores to State Horticulture Research and Development Institute which will be utilized by the institute for core activities including revenue generating activities that aims at ultimately becoming self-sustaining in future.
• To create new nurseries across different agro-climatic zones of the State. Four new nurseries including one for High Altitude Medicinal Plants will be established at Ziro, Lower Subansiri for temperate crops, Basar, West Siang for Sub-tropical crops and Namsai for tropical crops and at Tawang for medicinal plants. All four new nurseries will be managed by the SHRDI.
• An initial outlay of Rs 5 crores is being proposed for the Chief Minister’s white revolution program to establish an integrated dairy development project in Lohit district

Unlocking the potential of Land

• A land pooling policy will be notified which will make landowners partners in progress in key infrastructure and industrial development projects, while reducing the burden of land acquisition cost for the state

Industry and Private Investments of Budgets of Arunachal Pradesh

• To roll out a new Industrial policy 2017
• To develop Industrial estates in the foothill districts
• To develop one food park at Tippi which will have common infrastructure facilities for investors including packaging, storage and processing

Balanced Regional Development of Budgets of Arunachal Pradesh

• To develop Pasighat, Tezu and Bomdila as regional growth centres, which would have all facilities at the regional level for education, healthcare, employment generation, skilling and serve as economic growth hubs
• To keep a provision of Rs 50 crores in the budget for socio economic development in the districts of Tirap, Changlang and Longding under DOTCL
• To establish Chief Minister’s District Innovation and Challenge Fund, with a corpus of Rs 100 crores

Rural Transformation of Budgets of Arunachal Pradesh

• The Rural Development department will be implementing the Mahatma Gandhi National Rural Employment Guarantee Act in rural areas of Arunachal Pradesh with a proposed outlay of Rs 270 crores
• Under the RURBAN Mission, Tuting is being developed as a rural cluster through which rural areas would be provided with urban amenities. Nafra cluster will be taken up for implementation in the next financial year and an outlay of Rs 5 crores has been proposed for this scheme.
• Rural road construction works are being undertaken across the state under Pradhan Mantri Gramin Sadak Yojana. This year, 16 roads have been taken up to cover 35 habitations, covering a length of 236 km. For the financial year 2017-18, we have set an ambitious target of covering 1000 km of rural roads and an outlay of Rs 450 crores has been proposed for this purpose

Education

• A sum of 30 crores is being earmarked for Chief Minister’s Adhunik Shiksha Yojana to cover nearly 1500 classrooms under this program.
• To allocate a sum of Rs 2 crores for completion of works of VKV Longding and a sum of Rs 10 crores for starting classes at VKV Mukto on a PPP basis
• To establish an Education Hub at Tezu

Health

• To make an allocation of Rs. 15 crores for procurement and installation of CT scan machines at Naharlagun and Pasighat
• To allocate a sum of Rs. 10 crores for modernization of existing drug deaddiction centres at Pasighat, Tezu, Namsai, Changlang, Papum Pare, including for purchase of required medicines and equipment. A new drug deaddiction centre will be established at Khonsa.
• The infrastructure and equipment of 5 zonal general hospitals will be upgraded at Bomdila, Tezu, Ziro, Aalo and Khonsa for which a provision of Rs. 25 crores is proposed.

Social security

• To make an allocation of Rs. 60 crores under the Chief Minister’s Social security scheme and the benefit will be transferred to the beneficiary directly under the Direct Benefit transfer scheme.
• To increase the honorarium of anganwadi workers to Rs. 4500 per month and for anganwadi helpers to Rs. 3000 per month to provide them adequate incentive for work
• Under the integrated child protection scheme, six new juvenile homes are proposed to be constructed at Aalo, Bomdila, Changlang, Tezu, Roing, Yupia and an allocation of Rs. 6 crores is proposed

Infrastructure of Budgets of Arunachal Pradesh

• A total length of the 2570.82 Km of National Highways/ State Road is being implemented under the Highway Programme of the Ministry of Road Transport & Highways, Government of India, of which our own PWD is executing 16 packages with a road length of 419.88 km, Ministry of Road transport and highway is executing 3 projects with a road length of 710.95 km, BRO is executing 22 packages with a road length of 717.78 km, NHIDCL is executing 25 packages with a road length of 722 km

Forest and environment

• Arunachal Pradesh is one of the most richly endowed biodiversity zones of India. The rich forest cover, flora, fauna and wildlife are unique in the national context. Even as the state marches on the path of development, we must preserve, protect and nurture this habitat.
• The Forest department undertakes programs under Project Elephant, Project tiger and Wildlife Habitat program at Pakke tiger reserve, D Ering wildlife sanctuary and Namdapha wild life sanctuary. A sum of Rs. 8.7 crores is being proposed for allocation for these programs.
• U nder the National Forest Mission and Bamboo Mission, an allocation of Rs. 3.2 crores is being proposed.

Government servants

• To introduce a Chief Minister’s Employee Housing Scheme under which employees can avail bank loan of upto Rs. 30 lakhs and will get an interest subsidy of 4% from government. This will entail a net interest rate of 4.5% and a doubling of housing loan entitlement