Chief Minister Tarun Gogoi, who is also holding the Finance portfolio, today placed before the State Assembly a deficit Budget of Rs 2,819.23 crore. Though the annual deficit for 2008-09 is estimated to be Rs 458.53 crore, it is anticipated to shoot up to Rs 2,819.23 crore by the end of the year, taking into account the financial year's opening deficit of Rs 2,360.70 crore. Gogoi, who announced his Government's decision to monitor the outcome of the increasing public expenditure in real terms with this Budget, also announced another decision of the Government to introduce gender budgeting from 2008-09 fiscal. To begin with, 12 departments having schemes with 100 per cent funds earmarked for the benefit of women will be taking up this exercise, he said in his Budget speech. Presenting the Budget, Gogoi said in his speech that the Budget estimate for the year showed a receipt of Rs 23,939.89 crore under the consolidated fund of the State. Out of this, Rs 22,192.99 crore is on Revenue Account and the remaining Rs 1,746.90 crore is under Capital Account. After adding the receipt of Rs 74,923.53 crore under Public Account, the aggregate receipts amount to Rs 98,863.42 crore. Against this, the total expenditure from the consolidated fund of the State in 2008-09 is estimated at Rs 24,821.18 crore of which Rs 20,039.32 crore is on Revenue Account and Rs 4,781.86 crore is on Capital Account. Taking into account the expenditure of Rs 74,500.77 crore under Public Account, the aggregate expenditure for the year is estimated at Rs 99,321.95 crore. Thus, the estimated transactions during the year will result in an estimated deficit of Rs 458.53 crore, Gogoi said in his budget speech. State Finance: Gogoi said in his speech that the State had been able now to overcome chronic fiscal deficits and reporting revenue as well as fiscal surplus consecutively during the past two financial years. In 2005-06, the revenue surplus of the State was Rs 1,509 crore. This increased to Rs2,210 crore in 2006-07. The fiscal surplus of the State in 2005-06 stood at Rs 356 crore, which increased to Rs 711 crore in 2006-07. After enactment of the Assam Financial Responsiblity and Budget Management (FRBM) Act, 2005, the State got the benefit of re-scheduling of its outstanding debts to the Government of India. Public debt: Gogoi claimed that Assam was the first State in the country to have introduced a fully computerised debt management and recording system using software developed by the Commonwealth Secretariat. Moreover, during the last two years the State Government had restricted its borrowing from all sources to a level within the ceiling prescribed by the Ministry of Finance, Government of India and the borrowing limits laid down its own FRBM Act. This has been possible due to the improvement in its own resource position, he said. Sinking fund: He apprised the House that the State Government had already created a sinking fund for redemption of the State Government debts when they mature at some future dates. This has been done with a view to relieving the future generation of the burden of the public debt availed by the present generation. Guarantee Redemption Fund: He proposed establishment of a Guarantee Redemption Fund (GRF) from the next financial year. It will be used for redemption of the contingent liabilities that may devolve on the State Government in the event of invocation of the Government guarantee by the lenders. Infrastructure corpus: The State is now in a position to think of big infrastructure projects with its own resources as well as through the public-private partnership mode in addition to the Centrally funded projects, Gogoi said. He proposed a dedicated fund for creation of major infrastructure projects in the State to obviate the situation of uneven fund flow, caused by budget-to-budget fluctuations, often delaying the big infrastructure projects. The corpus will be placed at the disposal of a society to be formed in the name and style of Assam Infrastructure Financing Authority. The Chief Minister will head the Society. The amount of Rs 105 crore the State received recently as debt waiver from the Government of India will be transferred to the Society for creation of the corpus. The corpus is proposed to be raised to Rs 500 crore in course of the year. Only major infrastructure projects costing Rs 50crore or more will be taken up for funding out of this corpus, which will be operationalised during 2008-09, said Gogoi. The State Government has recently entered in to an understanding with RITES for doing feasibility studies for a six-lane road bridge connecting Guwahati with North Guwahati, another bridge over the river connecting Majuli and an elevated road from Chandmari to Guwahati Club. RITES has also been entrusted with the task of formulation of a perspective plan for infrastructure development with a view to strengthening the support base for uninterrupted economic growth of the State. The perspective plan will include projects in the sectors of power, roads, irrigation, urban development, housing, tourisms etc. Financing SHGs: As a pilot scheme to give a thrust to SHGs, Gogoi said that he had provided for Rs 10 crore in the Budget proposals for 2008-09 as an interest-free loan to the Assam Financial Corporation (AFC) for micro financing SHGs at a subsidised rate of interest. More funds will be made available for this purpose during the year if required. The AFC has been advised to prepare a comprehensive scheme in this regard in consultation with the Finance Department, he said. Rural credit: Informing the House that the credit-deposit (CD) ratio in the State had rose to 52.36 per cent in September, 2007 from 29.27 per cent in March, 2003 he said that the RBI was continuing its efforts for further improvement of the CD ratio with special emphasis on rural credit delivery to ensure full financial inclusion of the people of Assam. There is an attempt at reviving the short-term cooperative credit structure by strengthening all the Gaon Panchayat Samabay Samittees through an MoU with the NABARD and the Union Government this year. In view of the pressing credit needs of the drought and flood- affected farmers, he said, his Government would continue with the scheme of providing interest relief of two per cent for all crop loans up to Rs 20,000 sanctioned during the current financial year ending on March 31, 2008. This will enable greater access to credit for the State's 2.7 million farmers for taking up intensive Rabi cultivation. NABARD is implementing the scheme, he said. An amount of Rs 1.64 crore has been kept in the budget proposal for 2008-09 for the recapitalisation of the Langpi Dehangi Rural Bank to enable higher rural lending in the two hill districts New pension scheme: The Government has decided to introduce a new pension scheme based on defined contribution in place of the existing pension scheme based on the defined benefit. The new scheme will be applicable to all State Government employees who have joined State Government services on or after February, 2005. The scheme is expected to be operationalised in the coming fiscal, said Gogoi. Pay Commission: The State Government has decided to constitute the next State Pay Commission after the report of the Sixth Central Pay Commission becomes available. It has also decided to pay an interim relief of ten per cent of the basic pay and basic pension to all Government employees with effect from April 1, 2008. The 2008-09 budget has made necessary provisions for the purpose, said Gogoi Eleventh Five-Year Plan: The salary component of the State in this plan has been reduced to 0.25per cent. The entire plan allocation of more than Rs 5,000 crore is now available for developmental activities only. In the Plan budget for 2008-09, the State has provided an amount of Rs 974.44 crore as its share for various Centrally sponsored schemes as against Rs 600 crore provided in 2007-08, he said. Hill areas: Plan allocation for Karbi Anglong Autonomous District has been raised to Rs 173.43 crore in 2008-09 from Rs 142.67 crore in 2007-08. Similarly, the Plan allocation for NC Hills District Council has also been raised from Rs 68 crore in 2007-08 to Rs 75.47 crore in 2008-09. The Government has also decided to set up a Nursing College in the Hill areas, he announced. BTC: Gogoi proposed to increase the Plan allocation for BTC from Rs 125 crore in 2007-08 to Rs 150 crore in 2008-09. the Government has decided also to set up an Engineering College in BTC areas and upgrade the present Kokrajhar campus of Gauhati University into a full-fledged separate university and to set up a planetarium at Kokrajhar, said Gogoi. Other communities: The Government has proposed to raise the Plan allocations for the other six autonomous councils meant for the Rabhas, Misings, Tiwas, Sonowal Kacharis, Thengal Kacharis and Deuris, by 58 per cent and provide Rs 93 crore to these councils in 2008-09 Plan budget. Besides, his Government has proposed to establish six new development councils for the Moran, Motoks, Ahoms, Chutiyas, Koch-Rajbongshis and Tea Tribes ethnic groups. His Government has also proposed to set up a Gorkha Development Council. An amount of Rs 12 crore has been provided for this purpose in 2008-09 Plan budget, Gogoi said. He has also proposed increase in the allocations for welfare of the Scheduled Tribe and the Scheduled Caste population. An amount of Rs 38.14 crore has been proposed for the Tribal Sub Plan and Rs 101 crore is proposed for Scheduled Caste Sub Plan in 2008-09. An amount of Rs 5 crore has also been proposed for implementation of various developmental schemes for the Other Backward Classes, he said. Over 50 per cent increase in the allocation for the tea tribes has been proposed by making an allocation of Rs37 crore for these communities. An amount of Rs 7 crore has been provided for Minority Welfare Board against Rs 5 crore in the current year, said Gogoi, adding, in the next fiscal, a special programme would also be launched for all round socio-economic development of the minorities after due consultation with the representatives of minority organisations. An amount of Rs 25 crore has been set aside. Besides, an amount of Rs 1crore is proposed for improvement of Madrassa education in the State, he said. Char areas: An amount of Rs 12.20 crore has been proposed for development of the char areas in the next fiscal. Border areas: For development of inter-state border areas, Gogoi proposed in his budget an amount of Rs 11 crore. HIGHLIGHTS * The growth rate of Assam's GSDP to be 8.0 per cent during the current year. * Government of India has sanctioned Rs 105 crore as debt waiver in favour of Assam Government for the year 2005-06, in accordance with the recommendation of the 12th Finance Commission. * Guarantee Redemption Fund (GRF) to be established for redemption of the contingent liabilities. * Creation of Assam Infrastructure Financing Authority to finance infrastructure projects of not less than Rs 50 crore. * A pilot scheme to give thrust to SHGs, an interest-free loan of Rs 10 crore to the Assam Financial Corporation (AFC) for micro financing SHGs at a subsidised rate of interest. * Rs 5 crore as equity to strengthen the capital base of AFC. * The scheme of providing interest relief of 2 per cent for all crop loans up to Rs 20,000 to continue. * Gender budgeting covering 12 departments has been introduced. * State Pay Commission to be constituted and an interim relief of 10 per cent of the basic pay and basic pension to all government employees with effect from April 1, 2008. * An engineering college each in BTC area and Barak Valley, an agriculture college at Dhubri and a nursing college in the hill areas to be set up. * The Kokrajhar campus of the Gauhati University to be upgraded into a university. * Six new development councils for the Moran, Motok, Ahom, Chutia, Koch-Rajbongshi and Tea Tribes and a Gorkha development council. * A special programme for all-round development of the minorities. * 45 new police stations including 19 for the char areas, a full-fledged counter insurgency academy and a Special Task Force for counter insurgency operations. * 12 Special Police Stations to deal with offences under the Electricity Act, 2003. * Anundoram Borooah Award to the students of the Madrassas. * A new health insurance scheme for the poor patients of the State. * A super-speciality unit in the Gauhati Medical College. * NREGA extended to all the 27 districts of the State. Daily wages under NREGA raised from Rs 77 to Rs 100. * Rs 236.70 crore proposed for maintenance of roads and bridges. * A special package for rehabilitation of viable industrial units under the micro, small and medium enterprises sector. * IT Park near Borjhar Airport. * A new schme to be launched for empowerment of women, namely Mukhya Mantrir Mahila Samridhi Achani. * VAT on rice, pulses, atta, maida, suji, besan, onion and potato to be abolished. * VAT on jute cloth, other jute products soya nuggets and transformers from 12.5 per cent to 4 per cent. * Tax on foreign liquor and country spirit from 24 per cent to 27 per cent. * A cess at rate of 3 per cent on sale of tobacco products. * 4 per cent VAT on sports goods. Footballs and volleyballs to be exempted. * Entertainment tax on DTH connections at the rate of Rs 25 per connection per month. * Cess at the rate of 20 paise per kilogram of green leaf purchased by the bought-leaf factories.