<–2/”>a >Nagaland PUBLIC FINANCE and Fiscal Policy
Nagaland is one amongst the north-eastern states in India. It’s bordered on its west and north by Assam, on its east by Myanmar (formerly referred to as Burma), on its north by Arunachal Pradesh, and on its south by Manipur.
Nagaland is one of India’s smallest states, with an entire space of 16,579 sq kilometre. The Naga Hills run through this small state that has Saramati as its highest peak at a height of regarding 12,600 ft. Dhansiri, Doyang, Dikhu and Jhanji ar the rivers that flow through this state. The piece of land is mountainous, thickly sylvan, and cut by deep watercourse valleys. There’s a decent type of plant and animal life. Nagaland features a monsoon Climate with sometimes high humidity; rain Averages between 1800 to 2500 mm (70 to 100 inches) a year.
Nagaland has a legislative assembly with sixty seats. The state sends 2 members to the Indian Parliament: one to the Rajya Sabha and one to the Lok Sabha. There are seven government body districts – Mokokchung, Tuensang, Mon, Wokha, Zunheboto, Phek and Kohima.
The state is found between the 93°20′ E and 95°15′ E Longitudes and 25°6′ and 27°4′ N Latitudes. The total space lined by the state is 16,579 sq. kilometer. Nagaland was declared the sixteenth state of the country of India on 1 December 1963. Before this, Nagaland accustomed could be a union territory. The other attention-grabbing knowledge concerning Nagaland is that it homes as many as sixteen entirely completely different ethnic groups. These groups of people have their own separate cultural identities that embrace customs, dresses and languages. Nearly ninety make the most the Population-of-nagaland/”>Population of Nagaland is devout Christians. The state collectively Options considerable Hindu individuals. Kohima, the capital town of the state, options a variety of websites that ought to be visited by the tourists as a result of it will facilitate them in getting an insight of the rich history place. The name ‘Kohima’ has been derived from the name of a plant referred to as ‘Kew Hi’ that thrives inside the mountainous region. Kohima could be a fascinating place, endued with scores of natural beauty.
PUBLIC FINANCE
With a slender tax base, the State depends on central transfers for its finances since Statehood. Post the fourteenth Finance Commission recommendations; the State total receipt throughout 2016-2017 (B.E) is anticipated to extend by 15 per cent. Consequently, the State’s business enterprise deficit is calculable to fall inside the 3 per cent business enterprise deficit target as set underneath Nagaland business enterprise Responsibility & Budget Management Act. But a problem of concern is that the State’s total liability that is calculable to stay at 43.77 per cent of GSDP as against the Medium Term economic policy Statement target of 32.15 per cent in 2016-17. Total Receipts of the State
The full receipts of the authorities comprise of the Revenue Receipts and also the capital receipts. Throughout 2016-17 (B.E) the full receipts of the authorities is calculable to grow by 15 per cent raising the full receipt to Rs.13,870.98 crore from Rs.12,060.99 crore in 2015-16 (R.E). Element wise, throughout 2016-17 (B.E) the share of revenue receipts and capital receipts within the total receipts was seventy 6.19 per cent and 23.81 per cent severally.
State tax income receipt contains of State’s own tax income receipts and share of central tax transfers. State own tax income includes receipts from land revenue, stamp duties and registration, sales tax/VAT, skilled tax, tax on cars, State excise etc. Among the various classes of State’s own taxes; VAT, skilled tax and tax on vehicles contribute the most quantity to State own tax income. Throughout 2016-17 (B.E) the full quantity of tax income is calculable to extend to Rs. 3531.62 crore from Rs. 2985.93 crore in 2015-16 (R.E). As share of total revenue receipts, total tax income account for 33.20 per cent throughout 2015-16 (R.E) and 34.42 per cent throughout 2016-17 (B.E).
The non-tax revenue contains of interest receipts, revenue from administration, State lottery, power, facility, housing, Forestry and life and road transport. Within the State, underneath non tax income, the main contribution comes from Power Department. Throughout 2016-17 (B.E) the full non-tax revenue is calculable to extend to Rs. 261.59 crore from Rs. 237.82 crore in 2015-16 (R.E).
State’s own revenue (including tax and non-tax) receipts (SORR) that was Rs. 536.83 crore throughout 2011-12 raised to Rs. 659.22 crore throughout 2014-15. Throughout 2016-17(B.E) the SORR is calculable to additional increase to Rs.776.90 crore. As against absolutely the increase in SORR, the Percentage share of the State’s own revenue receipts (i,e. tax and non-tax revenue) to total revenue receipts swayback from 9.61 per cent in 2011-12 to 7.35 per cent in 2016-17 (B.E).
Nagaland gross Fiscal Deficit soared from Rs 1 Billion in 1991-92 to Rs 11.6 Billion within the fiscal year (FY) 2015-2016 as per the info discharged by reserve bank of India (RBI) on Saturday.
According to the reference book of Statistics of run 1st released in 2016, the number is that the highest business enterprise deficit in sixteen years of Nagaland state since 1991 and State had just one surplus fiscal year in 2003-04.
However, as per the advance budget estimate, the business enterprise deficit is anticipated to decrease to Rs 5.4 billion (Rs 5,400 billion) in FY 2016-17. Overall, the second edition of RBI’s applied math publication titled ‘Handbook of Statistics on States 2016-17’ rumored a hike within the gross business enterprise deficit of all the states of India, surging from a Rs 187.9 billion in FY 1991 to Rs 4,495.2 billion in FY a 2016.
The State with the very best deficit was Rajasthan at Rs 673.5 billion followed by Uttar Pradesh at Rs 643.2 billion. The Gross fiscal Deficit (GFD) shows the surplus of total expenditure together with loans Internet of recovery over revenue receipts (including external grants) and non-debt capital receipts.
The rise in fiscal deficit is additionally indicative of 2 deteriorating state of affairs within the economy growing Revenue Deficit moreover outstanding liabilities.
With the enactment of a Fiscal Responsibility and Budget Management Act (FRBM) Act, 2005 at the centre, the Twelfth Finance Commission (XII FC) suggested that every State enact a fiscal responsibility legislation prescribing specific annual targets with a read to eliminate the Revenue Deficit by 2008-09 and scale back financial Deficit supported a path for reduction of borrowings and guarantees. The State of Nagaland enacted Nagaland financial Responsibility and Budget Management (NFRBM) Act in 2005. The targets prescribed in NFRBM Act and projections created by government in its Medium Term fiscal policy Statement (MTFPS), targets planned within the Budget, Fourteenth Finance Commission (XIV FC) targets for the State vis-a-vis achievements throughout the year 2014-15
Nagaland gross fiscal deficit soared from Rs 1 Billion in 1991-92 to Rs 11.6 Billion within the fiscal year (FY) 2015-2016 as per the information discharged by reserve bank of India (RBI) on Saturday.
According to RBI, the reference work of Statistics initial discharged in 2016, it’s the best fiscal deficit in 16 years of Nagaland state since 1991 and State had only 1 surplus fiscal year in 2003-04.
However, as per the advance budget estimate, the financial deficit is predicted to decrease to Rs 5.4 billion in FY2016-17. Overall, the second edition of RBI’s statistical publication titled ‘Handbook of Statistics on States 2016-17’ according a hike within the gross fiscal deficit of all the states of India, surging from a Rs 187.9 billion in FY 1991 to Rs 4,495.2 billion in FY2016.
The State with the best deficit was Rajasthan at Rs 673.5 billion followed by Uttar Pradesh at Rs 643.2 billion. The Gross fiscal Deficit (GFD) shows the surplus of total expenditure together with loans internet of recovery over revenue receipts (including external grants) and non-debt capital receipts.
The rise in financial deficit is additionally indicative of 2 deteriorating state of affairs within the economy growing revenue deficit moreover outstanding liabilities. (UNI)
In Nagaland’s 2015-16 budget, one amongst the best contributors to the state’s increase in revenue on the Capital Account are internal debt. The inner debt of the state is predicted to extend by quite 55th from the revised estimates of 2014-15. The government is predicted to lift the aforesaid quantity from enhanced market borrowings to the tune of Rs. 480 crores and ways that and suggests that advances from the tally to the tune of Rs. 626 crores of rupees. The exaggerated borrowings can presumably place a pressure on the debt service burden within the future. However, the increased GSDP, to the tune of quite terrorist organization, is predicted to cut back the consolidated debt as a printed of GSDP to 35.4% from 4.5%. Thus the importance of economic process once more props its head within the budget numbers. To confirm that the amount of debt square measure property within the end of the day there’s a requirement to confirm that the divisor, particularly GSDP should increase moreover. The fiscal deficit is predicted to be 4.91% of the GSDP. Reduction in financial deficit that has been envisaged by the XIV Finance Commission to sub third levels would require our state to renew its target revenue generation. For this purpose it’s necessary that we glance at newer sources of tax income. It’s going to be pertinent to say the expertise of Mizoram that gathered over Rs.7.23 crores at intervals an area of underneath three months. The enacting of the Mizoram Liquor Prohibition & management Act, 2014 when a. associate degree sophisticated dialogue on the difficulty of prohibition in our state should be conducted so it’ll provide some respite to the cash stripped Nagaland government.
The main feature of our revenue performance is that the increase of quite two hundredth in own tax income compared to RE 2014-15 and budgeted at Rs. 434.46 crores. Together with this increase there has been a decrease in non-tax revenue by 27th and is budgeted to be at Rs. 360.48. The revenue deficit is budgeted to be 125th of GSDP.
Another feature that’s noteworthy is that the slow however steady increase in interest payments created by our government. It exaggerated from the particular figure of Rs. 450.6cr in 2013-14 to the budgeted to Rs. 661.42cr in 2015-16. As mentioned earlier it’s vital that there’s a combined effort to cut back the interest burden on the govt. in an exceedingly comprehensive manner. No budget discussion in Nagaland is complete while not a reference or an examination of the position or otherwise of the role competes by central transfers. It’s been budgeted that there’ll be a rise (compared to RE 2014-15) within the transfers from the centre to Rs. 8227 cr. this is often simply over 37.0% of the anticipated increase in GSDP.
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Public Finance and Fiscal Policy in Nagaland
Public finance is the study of the government’s revenue and expenditure. It is concerned with how the government raises Money and how it spends it. Public expenditure is the total amount of money that the government spends in a given year. It includes both Capital Expenditure and recurrent expenditure. Capital expenditure is money that is spent on things that will last for a long time, such as roads, bridges, and schools. Recurrent expenditure is money that is spent on things that need to be replaced on a regular basis, such as salaries, fuel, and office supplies.
Fiscal policy is the government’s use of Taxation and spending to influence the economy. The government can use fiscal policy to stimulate the economy, to reduce Inflation, or to reduce the deficit. Fiscal policy is implemented through the budget. The budget is a document that shows how the government plans to raise money and how it plans to spend it.
The fiscal deficit is the difference between the government’s revenue and its expenditure. If the government’s revenue is greater than its expenditure, then the government has a budget surplus. If the government’s expenditure is greater than its revenue, then the government has a budget deficit.
Public Debt is the total amount of money that the government owes. It includes both short-term debt and long-term debt. Short-term debt is money that the government owes that is due to be repaid within one year. Long-term debt is money that the government owes that is due to be repaid over a period of more than one year.
The Fiscal Responsibility and Budget Management Act (FRBM Act) is an act of the Parliament of India that was enacted in 2003. The FRBM Act sets out the rules for the government’s fiscal policy. The FRBM Act aims to ensure that the government’s fiscal policy is sustainable and that the government does not run up too much debt.
Fiscal sustainability is the ability of the government to continue to meet its financial obligations in the long run. Fiscal sustainability is important because it ensures that the government will be able to provide essential Services, such as Education, healthcare, and security, in the future.
Fiscal transparency is the openness and clarity with which the government reports its financial information. Fiscal transparency is important because it allows citizens to hold the government accountable for its spending.
The government of Nagaland has been facing a number of fiscal challenges in recent years. The state has been running a budget deficit for many years, and its public debt has been increasing. The government has also been facing challenges in collecting taxes. In order to address these challenges, the government of Nagaland has taken a number of steps, including:
- Increasing taxes: The government of Nagaland has increased taxes on a number of items, including alcohol, tobacco, and fuel.
- Reducing expenditure: The government of Nagaland has reduced expenditure on a number of items, including salaries, travel, and office supplies.
- Borrowing money: The government of Nagaland has borrowed money from the central government and from Commercial Banks.
The government of Nagaland is also working to improve its fiscal transparency. The government has published a number of reports on its fiscal performance, and it has made its budget documents available online.
The fiscal challenges facing the government of Nagaland are significant. However, the government is taking steps to address these challenges. The government is increasing taxes, reducing expenditure, and borrowing money. The government is also working to improve its fiscal transparency. It is hoped that these steps will help the government of Nagaland to achieve fiscal sustainability.
What is public finance?
Public finance is the study of the government’s revenues and expenditures. It includes the study of how the government raises money, how it spends money, and how it manages its debt.
What is fiscal policy?
Fiscal policy is the use of government spending and taxation to influence the economy. The government can use fiscal policy to stimulate the economy during a Recession or to slow down the economy during a period of high inflation.
What are the different Types of Taxes?
There are many different types of taxes, but the most common are income taxes, sales taxes, and property taxes. Income taxes are taxes on the income that people earn from their jobs, investments, and other sources. Sales taxes are taxes on the goods and services that people buy. Property taxes are taxes on the value of the land and buildings that people own.
What are the different Types of government spending?
Government spending can be divided into two categories: mandatory spending and discretionary spending. Mandatory spending is spending that is required by law, such as Social Security and Medicare. Discretionary spending is spending that is not required by law, such as the military and education.
What is the national debt?
The national debt is the total amount of money that the government owes. The government borrows money by selling Treasury Bonds. The national debt has been increasing in recent years, due to the large budget deficits that the government has been running.
What are the benefits of public finance?
Public finance can help to stabilize the economy, redistribute income, and provide public goods and services.
What are the drawbacks of public finance?
Public finance can lead to inflation, government debt, and inefficiency.
What are some of the challenges facing public finance today?
Some of the challenges facing public finance today include the aging population, the rising cost of healthcare, and the need to reduce the national debt.
What are some of the solutions to the challenges facing public finance today?
Some of the solutions to the challenges facing public finance today include raising taxes, cutting spending, and reforming the tax code.
Which of the following is not a source of revenue for the Nagaland government?
(A) Income tax
(B) Sales tax
(C) Excise tax
(D) Property taxThe Nagaland government’s expenditure is classified into which of the following categories?
(A) Revenue Expenditure
(B) Capital expenditure
(C) Both revenue and capital expenditure
(D) None of the aboveThe Nagaland government’s fiscal deficit is the difference between its
(A) Revenue and expenditure
(B) Capital and revenue expenditure
(C) Revenue and capital receipts
(D) None of the aboveThe Nagaland government’s fiscal deficit is financed through
(A) Borrowing
(B) Deficit Financing
(C) Both borrowing and deficit financing
(D) None of the aboveThe Nagaland government’s debt is the total amount of money it owes to
(A) Its citizens
(B) Other governments
(C) Banks and other financial institutions
(D) All of the aboveThe Nagaland government’s debt-to-GDP ratio is the ratio of its debt to its
(A) GDP
(B) Revenue
(C) Expenditure
(D) None of the aboveThe Nagaland government’s debt-to-GDP ratio is a measure of its
(A) Financial Health
(B) Economic stability
(C) Both financial health and economic stability
(D) None of the aboveThe Nagaland government’s fiscal policy is aimed at
(A) Promoting economic Growth
(B) Reducing POVERTY
(C) Both promoting economic growth and reducing poverty
(D) None of the aboveThe Nagaland government’s fiscal policy is implemented through
(A) Taxation
(B) Spending
(C) Both taxation and spending
(D) None of the aboveThe Nagaland government’s fiscal policy is evaluated based on
(A) Its impact on economic growth
(B) Its impact on poverty reduction
(C) Both its impact on economic growth and poverty reduction
(D) None of the above