‘Economy of the State is resurgent, its fiscal health sound and public debt sustainable'
Haryana Finance Minister Ajay Singh Yadav on Wednesday presented a tax-free Budget for 2011-12 in the Vidhan Sabha.
Presenting his second consecutive Budget, Capt. Yadav claimed that even though higher allocations had been for the key sectors, the endeavour was to keep the fiscal deficit to 2.61 per cent of the Gross State Domestic Product (GSDP) which was “well below the permissible limit of three per cent”.
The Budget estimates for 2011-12 project a revenue deficit of Rs.2,660.68 crore and fiscal deficit of Rs.8,008.60 crore.
Capt. Yadav said the State economy was resurgent, its fiscal health sound, revenue as percentage of GSDP was growing and public debt sustainable. The economy had started showing signs of resurgence after witnessing stress during 2008-09 and 2009-10, he added.
According to quick estimates, the GSDP had grown by 9.9 per cent in real terms in 2009-10 and the per capita income is likely to grow by 16.3 per cent to Rs.78,781 at current prices and by 8.2 per cent at constant prices. Haryana enjoys the highest per capita income among major States in India and is second only to Goa.
“The advance estimates show that the GSDP at constant prices for 2010-11 is likely to grow at 9 per cent and per capita income by 7.2 per cent. This means the downside risks to growth have receded,” he asserted.
Stating that Haryana's economy had matured by experiencing structural transformation, the Finance Minister said the contribution of services sector to GSDP stood at 53.5 per cent; industry 30.8 per cent and agriculture 14.9 per cent in 2010-11.
The Government was committed to improving tax administration, maximising development expenditure and maintaining sustainability of public debt, he said. Thanks to better enforcement, focused tax collection efficiency, continuous review and monitoring, tax revenue as percentage to GSDP which was 6.11 in 2009-10 was expected to increase to 6.73 in 2010-11.
According to the estimates for 2011-12, total receipts (net of public debt) are projected at Rs.39,170.45 crore, of which revenue receipts are Rs.32,018.19 crore, and capital receipts (net of public debt) Rs.7,152.26 crore. These represent an increase of Rs.6,651.67 crore, Rs. 4,421.45 crore and Rs.2,230.22 crore respectively over the corresponding projections in the revised estimates for 2010-11.
The total expenditure (excluding repayments) under the Budget estimates for 2011-12 is projected at Rs.40,276.28 crore, of which revenue expenditure is Rs.34,678.87 crore and capital expenditure Rs.5,597.41 crore. These signify an increase of Rs.3,704.58 crore, Rs.2,623.75 crore and Rs.1,080.83 crore respectively over the corresponding projections in the revised estimates for 2010-11.
Capt. Yadav reiterated that Haryana was a revenue deficit State up to 2004-05 (when the Indian National Lok Dal ruled the State).
It was after the present government assumed office in 2005-06 that the State became revenue surplus and remained so up to 2007-08. But economic slowdown and impact of pay/pension revision turned it revenue-deficit.
Stating that the Annual Plan 2011-12 had been pegged at Rs.13,200 crore, he said it was about six times higher than the Plan size of Rs 2,306 crore in 2004-05.
An outlay of Rs.2,136.83 crore for the Centrally Sponsored Schemes and other development plans chemes has been included on the Plan side, boosting the composite Plan outlay in the Budget estimates for 2011-12 to Rs.15,336.83 crore.
He said core inflation remained under check though food inflation was high for some cereals, sugar and pulses at the beginning of the year. The prices had moderated.
The government enhanced the minimum wages under MNREGS as well as under the Minimum Wages Act to protect the poor against erosion of their purchasing power.
The Budget, he added, was geared towards the welfare of the common man, the farmers, the workers, the artisans, the poor, the disadvantaged and the downtrodden.