Additional Chief Secretary & Finance Commissioner, Sentiyanger while addressing the press fraternity at THE Secretariat Conference Hall, Kohima on 1st May 2020, said that the impact of COVID-19 pandemic is not an issue to be viewed solely from the medical angle but also view its devastating impact in the social and economic spheres. The economic challenges are apparent with manufacturing and services sectors which have closed down with retrenchment of workers which has resulted in huge negative impact on the tax revenues of governments around the world over. He added that India having gone into lockdown since 25th March, 2020 which has negatively impacted the revenues of the Central Government as well as that of the States and Union Territories.
ACS & Finance Commissioner, Sentiyanger also informed that the COVID-19 pandemic leave the Government with no choice but to allocate more funds for health infrastructure and other related areas which have not been budgeted, leading to increase in the levels of deficit. Therefore the State Government has taken pre-emptive steps in the form of certain austerity measures which included Freeze on all fresh appointments, Freeze on DA/DR in line with the decision of the Central Government, Cut on non-development expenditure including ban on purchase of vehicles; and Pro-rata cuts on developmental expenditure which is under examination.
He also explained that the State Government has also taken steps to augment the revenues of the State by increasing the rate of tax on petroleum products in the form of COVID-19 cess to supplement the resources of the State in fighting the COVID-19 pandemic. The levy of the cess on High Speed Diesel and Motor Spirit (Petrol) has been enforced effective from the midnight of 28th April 2020. This is expected to generate additional revenue of Rs. 55.58 crore annually. The specific mention of COVID-19 in the cess has been done to ensure utilization of the revenue generated for COVID-19 pandemic related activities. This cess would be withdrawn once the threat of the COVID- 19 pandemic is formally declared to be over.
The Finance Commissioner also said, the State Government is aware of the misinformation being circulated in the social media of the alleged huge amounts released by the Centre to the State for COVID-19 related activities and remained that the Finance Department has already issued a clarification earlier in the matter, stating that the amount of Rs. 346 crore claimed to have been released for COVID-19 related activities is actually the amount released by the Central Government as Revenue Deficit Grant and the amount of Rs. 20.50 crore for the State Disaster Relief Fund as recommended by the 15th Finance Commission and added that a further amount of Rs 20.50 crore has also been released as 1st instalment of SDRF for 2020-21 to which a maximum of upto 35% of this release can be used for COVID-19 related activities.
(Maongtemjen IA & Renbemo IA)