Cong pushed Haryana to bankruptcy: CM

Pradeep Sharma

Tribune News Service

Chandigarh, March 2

The Haryana Government today released a white paper on the state’s economy blaming the previous Congress government for the “financial mess that pushed the state to virtual bankruptcy”.

“We inherited a shattered economy and near-empty coffers,” said Chief Minister Manohar Lal Khattar, who released the White Paper along with state Finance Minister Capt Abhimanyu. “The White Paper shows the factual status of various aspects of finances and related growth data over the 10-year period from 2004-14,” Khattar said alleging large-scale disparities in development of various districts in the state.

Khattar said the 10-year Congress rule under Bhupinder Singh Hooda led to negative growth in agriculture and decline in the industrial sector. “Dip in the industrial sector’s contribution to the gross state domestic product (GSDP) pulled down revenue, employment generation and growth of the state’s economy,” he said.

Capt Abhimanyu claimed that agriculture and allied sectors registered negative growth from 2005-13 in the state, though it was positive at the national level during the corresponding years. He said the Congress government’s reckless, unplanned and unproductive spending led to the sorry state of finances in the state. “These factors compounded by the government’s inability to raise resources reduced Haryana from a revenue-surplus to a revenue-deficit state,” he said.

“Except for 2006-07, the state had continuously been fiscal deficit. In 2004-05, fiscal deficit aggregated Rs 1,206 crore, which increased significantly to Rs 8,314 crore in 2013-14,” the minister said.

“Shortfall in revenue generation and decline in the share of Haryana’s own revenue in total receipts made the state over dependent on Central grants and borrowings,” he said. The White Paper said while loans shot up from Rs 4,474 crore in 2004-05 to Rs 17,713 crore in 2013-14, outstanding debt liabilities zoomed from Rs 23,320 crore in 2004-05 to Rs 71,305 crore in 2013-14. “Interest payments increased by more than 260 per cent from Rs 2,235 crore in 2004-05 to Rs 5,850 crore in 2013-14,” the Finance Minister said. Khattar said besides large scale disparities in development, there was huge difference in the district-wise per capita income.