BUDGET DEFICIT


 BUDGET DEFICIT 

Budget Deficit awmzia chu a táwi záwngin: "Sawrkarin kum khat chhûnga a sum lákluh (Total Receipts) ai-in a sum hman (Total Expenditure) a tam zawkna hi a ni."

Chhungkaw pakhatin thla khatah ₹10,000 hlawh chhuak sela, mahse ₹12,000 hmang ta se, ₹2,000-in an indaih lo tihna a ni a, chu chu 'deficit' chu a ni mai. 

1. Budget Deficit inthlauhna chu hetiang hian chawh chhuah a ni áą­hin:

Budget Deficit = Total Expenditure - Total Receipts

Total Expenditure: Revenue Expenditure (hlawh, pension etc.) leh Capital Expenditure (kawngpui siamna, building sakna etc.) zawng zawng.

Total Receipts: Revenue Receipts (chhiah leh fine etc.) leh Capital Receipts (pûk chawp loh, thil hralhna aṭanga sum hmuh) zawng zawng.

2. Budget Deficit chi hrang hrangte: Budget deficit kan tih hian a hnuai ami pathumte hi a huam tlângpui a, an danglamna hriat a pawimawh:

Revenue Deficit: Nitin inrelbawlna sum indaihlohna (Receipts < Expenditure).

Fiscal Deficit: Sawrkar sum indaihlohna zawng zawng, hetah hian sum pûk ngái zát (Borrowings) a lang chiang ber.

Primary Deficit: Fiscal Deficit aáą­anga sorkar ba hmasa interest pĂŞk tur kan paih hnu-a a bak / chuang awm zat.

3. Engtin nge Sawrkarin a tihtlém / hup (Fix) ṭhin?

ChhĂ nna. Sawrkarin sum a hman belh miau avĂ ngin he indaihlohna hi heng kawng hrang hrang hian a hnawhkhah áą­hin:

Borrowing (Puk): Ram chhung bank-te hnen atangin emaw, ram dang leh World Bank ang chi hnén atangin sum a pûk ṭhin.

Deficit Financing: Sorkarin RBI hnenah pawisa thar chhu turin a hrilh ṭhin (mahse hei hi thil man ti sang thei a nih avàngin fimkhur a ngái hle).

Disinvestment: Sorkar ta / ro, entirnan Air India emaw, sorkar company dangte a hralh (privatise) áą­hin.

4. A áą­hatna leh áą­hat lohna awm thei te:

A thatna: Ram hmasáwn mĂ©k tán chuan hmasáwnna hnĂ  thawk tĂąrin sum pĂ»k (deficit) a ngai ngĂ© ngĂ© áą­hin. Kawngpui leh zirna áą­ha siam nán sum hman tam hi a pawi lo.

A ṭhat lohna: A tam lutuk chuan ram chu ba (debt) ah a lut thûk tial tial a, thil man a lo sáng (inflation) a, ram economy a tlûkchhiat phah thei.

Sawi ták angin,  Budget Deficit chu "Sawrkarin a sum hmuh ai-in a hman a tam zawk a, chu indaihlohna chu sum pĂ»kin emaw kawng dangin emaw hnawh khah a ngâi" tihna a ni.

PRS Mizoram Legislative Assembly-a ka hmuhah chuan hetiang hian tún kum 2026-2027 Budget nihphung táwité a lo lang a.

Mizoram Budget Analysis 2026-27

The Chief Minister of Mizoram, Mr. Pu Lalduhoma, presented the Budget for the financial year 2026-27 on February 26, 2026.

1. Budget Highlights: The Gross State Domestic Product (GSDP) of Mizoram for 2026-27 (at current prices) is projected to be ₹43,817 crores, amounting to growth of 11% over the previous year.

2. Expenditure (excluding debt repayment) in 2026-27 is estimated to be ₹16,684 crores, roughly the same as the revised estimate of 2025-26 (₹16,708 crore).  In addition, the debt of ₹392 crores will be repaid by the state.  In 2025-26, expenditure (excluding debt repayment) is estimated to be 14% higher than budgeted.

3. Receipts (excluding borrowings) for 2026-27 are estimated to be ₹15,015 crores, an increase of 9% over the revised estimate of 2025-26.  In 2025-26, receipts (excluding borrowings) are estimated to be 6% higher than budgeted.

4. Revenue surplus in 2026-27 is estimated to be 2.1% of GSDP (₹900 crore).  In 2025-26, as per the revised estimates, the state is expected to observe a revenue deficit of 1% of GSDP (₹376 crore).

5. Fiscal deficit for 2026-27 is targeted at 3.8% of GSDP (₹1,669 crore).  In 2025-26, as per the revised estimates, the fiscal deficit is expected to be 7.6% of GSDP, higher than budgeted (4.6% of GSDP).

Mizoram sawrkar Finance Department tĂ rlan danin, 2026-27 financial year-a Mizoram Fiscal Deficit (sum tlachham tura chhutan) chu ₹1,669.02 crore a ni ang. Hemi awmzia chu state chhĂşnga thil siam chhuah zawng zawng (GSDP) aáą­anga chhĂ»tin 3.81% a ni.


Eng vangin nge Deficit a tam?
SASCI Loan: Sorkar laipui aáą­anga hmasawnna hna (Capital Investment) thawhna tura sum hmuh Special Assistance to States for Capital Investment (SASCI) hi loan anga lak a nih avĂ ngin deficit tisangtu ber a ni.
Revenue Deficit Grant tlákhniamna: Sorkar laipuiin state sorkar hnéna Revenue Deficit Grant a pek ṭhin chu kumin 2026-27 atang hian a titàwp (discontinue) tawh a, hei hian sum dinhmun a tiharsa hle.
Committed Expenditure: State sorkar hmuh aṭanga a hnathawkte hlawh (salaries - 29%), pension (17%), leh puk rulhna (interest - 6%) ringawt pawh hian sorkar revenue receipts aṭanga chhûtin 52% zet a la hék a ni.

Sawi belhna:
a)  2026-2027 Budget: ₹43,817 crores
b) Budget deficit: ₹1,669.02 crores (3.81%)
c) Deficit tisángtĂş ber: Special Assistance to States for Capital Investment (SASCI)

Revenue Deficit Grant: State sorkarin a sum hmuh luh ai-in mipui tána hnĂ  a thawhna-a a hman ral tĂąr a tam zâwk hian indaih lohna (deficit) a awm áą­hin a. Chumi indaih lohna chu hliahkhuhna tĂąrin Sorkar laipui-in he áą­anpuina sum hi a pe áą­hin a ni. 16th Finance Commission (2026-2031) chuan hĂ© grant hi a titĂ wp ta vek a ni. ChuvĂ ngin, Mizoram sorkar pawhin sum lák luhna a dap a ngaih bákah inremchen taka kal thiam a mamawh khawp ang. 

_______

ENGLISH

_______

What is a Budget Deficit?

In short: "It is the shortfall that occurs when a government's spending (Total Expenditure) exceeds its income (Total Receipts) within a single year."

For example, if a family earns ₹10,000 a month but spends ₹12,000, they face a ₹2,000 shortfall. Those ₹2,000 shortages are exactly what a 'deficit' is.

1. How a Budget Deficit is Calculated:

A budget deficit is typically calculated using this formula:

Budget Deficit = Total Expenditure - Total Receipts

a) Total Expenditure: Includes all Revenue Expenditure (salaries, pensions, etc.) and Capital Expenditure (road construction, building infrastructure, etc.).

b) Total Receipts: Includes all Revenue Receipts (taxes, fines, etc.) and Capital Receipts (disinvestment proceeds, recovery of loans, etc., excluding new borrowings).

2. Types of Budget Deficits: When we talk about a budget deficit, it generally covers these three types, and it is important to understand the differences between them-

a) Revenue Deficit: The shortfall in everyday operational and administrative expenses (Receipts < Expenditure)

b) Fiscal Deficit: The government's total financial shortfall. This clearly reflects the total amount of money the government needs to borrow (Borrowings).

c) Primary Deficit: The Fiscal Deficit minus the interest payments that the government has to pay on its past accumulated debts.


3. How Does the Government Fix/Reduce It?

Answer: Since the government has spent more than its income, it bridges this deficit through the following various methods:

a) Borrowing: The government borrows money either from domestic banks, foreign countries, or international institutions like the World Bank.

b) Deficit Financing: The government instructs the RBI to print new currency (however, great caution is required as this can lead to inflation/price hikes).

c) Disinvestment: The government sells or privatises state-owned assets or companies, such as Air India or other public sector undertakings.


4. Potential Advantages and Disadvantages:

a) Advantages: For a developing country, borrowing (running a deficit) is often necessary to fund developmental projects. Spending heavily on infrastructure like roads and quality education is beneficial in the long run.

b) Disadvantages: If the deficit is too high, the country sinks deeper into debt, leading to high inflation and potentially causing the country's economy to collapse.

As mentioned, a Budget Deficit simply means: "The government is spending more than it earns, and this shortage must be covered through borrowing or other financial means."


PRS Mizoram Legislative Assembly-a ka hmuhah chuan hetiang hian tún kum 2026-2027 Budget nihphung táwité a lo lang a:


Mizoram Budget Analysis 2026-27


The Chief Minister of Mizoram, Mr. Pu Lalduhoma, presented the Budget for the financial year 2026-27 on February 26, 2026.

a) Budget Highlights: The Gross State Domestic Product (GSDP) of Mizoram for 2026-27 (at current prices) is projected to be ₹43,817 crores, amounting to growth of 11% over the previous year.

b) Expenditure (excluding debt repayment) in 2026-27 is estimated to be ₹16,684 crores, roughly the same as the revised estimate of 2025-26 (₹16,708 crore).  In addition, the debt of ₹392 crores will be repaid by the state.  In 2025-26, expenditure (excluding debt repayment) is estimated to be 14% higher than budgeted.

c) Receipts (excluding borrowings) for 2026-27 are estimated to be ₹15,015 crores, an increase of 9% over the revised estimate of 2025-26.  In 2025-26, receipts (excluding borrowings) are estimated to be 6% higher than budgeted.

d) Revenue surplus in 2026-27 is estimated to be 2.1% of GSDP (₹900 crore).  In 2025-26, as per the revised estimates, the state is expected to observe a revenue deficit of 1% of GSDP (₹376 crore).

e) Fiscal deficit for 2026-27 is targeted at 3.8% of GSDP (₹1,669 crore).  In 2025-26, as per the revised estimates, the fiscal deficit is expected to be 7.6% of GSDP, higher than the budgeted (4.6% of GSDP).

According to the Finance Department, Government of Mizoram, the projected Fiscal Deficit for the 2026-27 financial year is estimated to be ₹1,669.02 crores. This amounts to 3.81% of the Gross State Domestic Product (GSDP).

Why is the Deficit High?

a) SASCI Loan: The funds received from the Central Government for infrastructure development under the Special Assistance to States for Capital Investment (SASCI) are taken in the form of a loan. This is the primary driver that pushes the deficit higher.

b) Discontinuation of the Revenue Deficit Grant: The Revenue Deficit Grant, which the Central Government regularly provided to the state government, has been discontinued starting this current fiscal year (2026-27). This poses a severe challenge to the state's financial position.

c) Committed Expenditure: Out of the state government's total revenue receipts, a staggering 52% is swallowed up just by government employee salaries (29%), pensions (17%), and interest payments on past borrowings (6%).

Additional Notes:

a) 2026-2027 Budget (GSDP): ₹43,817 crores

b) Budget Deficit: ₹1,669.02 crores (3.81%)

c) Main Deficit Driver: Special Assistance to States for Capital Investment (SASCI)

d) Revenue Deficit Grant: When a state government spends more on public welfare and public services than its actual revenue collections, a deficit occurs. The Central Government provides this grant as assistance to cover that specific shortfall. However, the 16th Finance Commission (2026-2031) has completely discontinued this grant. Consequently, the Government of Mizoram will not only need to find alternative sources of revenue but will also need to practice strict austerity and financial prudence. 

______

Thank you for your time🙏

______