Nagaland : Expenditure on salaries & wages raise by 51%

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The funds used on salaries and wages of State Government employees in Nagaland increased by 51.03% (from Rs 3274.16 crore in 2014-15 to Rs 4944.95 crore in 2018-19) at a compound annual growth rate of 10.86%.
Due to reconsideration of salaries as per the 7th Pay Commission, release of dearness allowances and incremental benefits increased the expenditure by 18.99% from the previous year.

This was notified in State Finances Audit Report of the Comptroller and Auditor General of India (CAG) for the year ending March 31, 2019, which was produced in the recent Nagaland Legislative Assembly (NLA) session.
43.23% of the Revenue Receipts and 45.28% of Revenue Expenditure was spent on pay out of salary and wages during the year 2018-19.
During 208-19 the total number of government employees in Nagaland was 1,23,686 which is 6.25% of the total population of the State.

The funds spend on pension had increased by Rs. 288.69 crore (22.84%) from Rs 1264. 10 crore in 2017-18 to Rs. 1552.79 crore (including Rs. 58.17 crore on new pension scheme) in 2018-19 due to reconsideration of pension on implementation of the 7th Pay Commission.

The Revenue Receipts of the state escalated by Rs. 418.20 crore (3.80%) from Rs. 11019 crore in 2017-18 to Rs.11437.41 crore in 2018-19 at an annual growth rate of 3.80%.
This hike was because of raise in Tax Revenue (Rs. 208.15 crore) and State’s Share of Union Taxes and Duties ( Rs, 439.28 crore) offset by reduction in Non-Tax Revenue (Rs. 133.29 crore) and GIA (Rs. 95.94 crore), according to the report.

The Capital Receipts of the state reduced by Rs. 287.19 crore (23.23%) from Rs. 1236.11 crore in 2017-18 to Rs. 948.92 crore in 2018-19, the report further stated. The reduction was mainly due to reduced market borrowing.
The total financial aid to the local bodies and other institutions reduced by Rs. 161.34 crore (49.13%) from Rs. 328.40 crore in 2017-18 to Rs. 167.06 crore in 2018-19 primarily for decrease in aid to the rural local bodies (Rs. 118.90 crore) and prohibition of release of assistance under the Indira Awas Yojana, various sports associations and special development programmes.(MorungExp)