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Coal ban effect: Govt announces 25 pc budget cut for all depts

SHILLONG: In the wake of the poor fiscal health of the State arising out of the National Green Tribunal (NGT) ban on coal mining since April 17, the State government has announced a 25 per cent budget cut for all departments.

Speaking to media persons here on Wednesday, Chief Minister Mukul Sangma admitted that the NGT ban on coal had impacted the State’s revenue collection as royalty generated from sale and export of coal had been stopped.

Pointing out that there was a sudden drop in the realization of royalty on coal and taxes on petroleum products, the chief minister said that the state’s revenue collection was far less than what had been initially projected.

He also said that the Balance of Current Revenue (BCR) of the State in the budget was quite weak though it had increased in the last three years.

Sangma also said that the plan size of the State had been affected and the government was left with no choice other than announcing a budget cut for all the departments.

The chief minister, however, asserted that it was an interim cut and would be reviewed continuously.

It is understood that the budget cut decision would be reviewed in January-February next year based on the needs of the various departments.

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