Shillong May 2: The Meghalaya cabinet today decided to enhance 100 per cent grants-in-aid to be given to managing committees of various categories of schools in the state for salary hike of teachers.

Later, chief minister Mukul Sangma told reporters here that the planning and finance departments had approved the proposal of the school education and literacy department for 100 per cent enhancement, which would involve a total of Rs 63.34 crore.

"Despite challenges and funds constraint, we have been able to work it out," Sangma said.

According to him, the salary hike of teachers would be effective from January 1, 2017.

The teachers, however, demand implementation with effect from September 1, 2016.

Sangma said those entitled to a salary raise include 2,450 lower primary school teachers, 2,532 upper primary school teachers, 1,521 "fourth teachers" teaching in Sarva Shiksha Abhiyan (SSA)-sponsored schools and 844 Hindi teachers.

Each SSA school has at least four teachers. But the salary of the teacher recruited last is always the least.

Sangma also said that salaries of all teachers in different categories of schools, would be paid double the amount they are getting at present.

Among other decisions taken by the state cabinet is the approval to reduce tax on cigarette and bidi from 27 per cent to 25 per cent on the ground that it would improve tax collection.

"There was a decrease in tax collection on cigarette and bidi after the tax was hiked from 20 per cent to 27 per cent. We expected that the collection would be more, but it did not come as expected. In 2014-15, when the tax was 20 per cent, the state could collect Rs 33.44 crore. However after increasing the tax to 27 per cent, the collection could not improve much, as in 2015-16 the collection was Rs 36.09 crore and Rs 31.48 crore as in 2016-2017," Sangma explained.

He, however, did not rule out the likelihood of tax evasion for the low realisation of tax, even as he pointed out "unauthorised brands" of cigarettes and bidi coming to Meghalaya from outside.

The cabinet also approved a proposal to amend Rule 327 of the Meghalaya excise rules to increase profit of retailers of Indian made foreign liquor (IMFL) from 10 per cent to 20 per cent on maximum retail price (MRP).

The cabinet also approved a proposal for signing an agreement to implement the centrally-sponsored Deen Dayal Upadhyaya Gram Jyoti Yojana for providing electricity to villages.

The ratio of funding for this scheme would be 85:15 between the Centre and the state government.

The cabinet also approved the proposal for various appointments on contractual basis in different departments.