Politics over economics

Haryana is definitely not the number one state on any front and if former Chief Minister B.S. Hooda did make such a claim, it might well be poll rhetoric. That his government was voted out shows the people of Haryana did not believe him. Nor is the state heading for “virtually bankruptcy” as Chief Minister Manohar Lal Khattar would like everyone to believe and maybe, as an INLD leader has said, he is preparing the ground for a stiff dose of taxes ahead of the budget. Incidentally, the ruling politicians in Haryana, Punjab and elsewhere do not annoy people with higher taxes. Instead, they resort to debt to meet day-to-day government expenditure. Under Hooda the government debt rose from Rs 46,443 crore in 2010-11 to Rs 71,305 in 2013-14. In addition the government had a PSU debt liability of Rs 27,306 crore. The debt limit, fortunately, is still within the prescribed limit.

Agriculture, which employs 51 per cent of the workforce but contributes only 15 per cent to the state GDP, showed a negative growth between 2005 and 2013 except in 2011-12. This slowed down development in rural Haryana. According to the White Paper, the rural unemployment rate  in Haryana was higher than the all-India average during this period. Hooda has often boasted of Haryana's high per capita income, which is not a correct way to judge a state. Gurgaon's per capita income is far higher than Mewat's and their average will distort the picture for both.

The challenge before the Khattar government, therefore, is clear: correct the imbalance in regional incomes and growth, accelerate development in rural Haryana through emphasis on agriculture, diversification, agro-industries, food processing, rural education, healthcare and water management. Haryana has slipped two places on the Human Development Index and its sex ratio too is a shame. However, the over-all situation is not as bad as the Chief Minister has tried to portray. The state's average 10-year growth rate is healthy at 8.85 per cent and the fiscal deficit is within the acceptable limits.  With right policies, the economy can bounce back.