No new taxes proposed as Capt Abhimanyu presents Haryana Budget

Naveen Grewal/Gitanjali Gayatri/Sushil Manav

Tribune News Service

Chandigarh, March 6

Haryana Finance Minister Capt Abhimanyu on Monday said the impact of GST and demonetisation had slowed economy but it would boost up before the end of the financial year.                     

He was reading out his budget speech in the Haryana Assembly. The FM presented his third budget in Haryana’s Golden Jubilee year.

The FM proposed a budget of Rs 1,02,329.35 crore, an increase of Rs 9,041.59 (13.18 per cent) over the last budget.

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The proposal comprises 21.88 per cent as capital expenditure of Rs 22,393.51 crore and 78.12 per cent as revenue expenditure of Rs 79,935.84 crore.

Salient features of the budget:

*Fiscal deficit has remained within limit of 3 per cent of GSDP                       

*Debt to GSDP has remained within prescribed limit of 25 per cent                        

*Total revenue receipts during 2016-17 estimated at Rs 69,327.09 crore

*Of this, tax revenue is estimated at Rs 45,087.63 crore and non-tax receipt at Rs 15,239.46 crore

*Total capital expenditure is estimated to be Rs 19,657 crore                      

*Nine priority areas: Agriculture, rural development, urban development, infrastructure, education, IT governance, health, women empowerment, development of youth and culture                    

*No new taxes in Haryana Budget

*No change in current VAT rates

*Bio-diesel, solar devices and parts used for installation of solar power projects made tax-free                                           

*New scheme Deenbandhu Haryana Gram Uday Yojana to develop 1,500 villages having populations between 3,000 and 10,000; to be implemented in three years with an outlay of Rs 5,000 crore; the scheme is funded by Nabard. During the current fiscal Rs 1,200 crore to be spent                                  

*For maintenance of existing infrastructure a new scheme, Mangal Nagar Vikas Yogna, with outlay of Rs 1,000 crore                       

*Demonetisation figures in the budget speech                       

*Announces 5 per cent rebate for use of the Bhim app                       

*Asset augmentation fund for strengthening public assets and asset management cell for asset mapping by revenue department                      

*Budget allocation to agriculture increased by 18.79 per cent                       

*Rs 3,206.01 crore for agriculture and allied activities

*Irrigation gets Rs 2,724 crore as compared to Rs 2,397.68 crore last year                       

*Budget allocation for rural development increased by 56.69 per cent

*For irrigation the increase in allocation is 13.62 per cent

*Saksham Scheme to provide up to Rs 9,000 earning potential for unemployed youth                       

*To provide unemployment allowance and honorarium                

*Rural development gets Rs 4,963.09 crore in 2017-18 against Rs 3,167.55 last year                         

*Panchkula becomes the first district where all villages are getting 24-hour electricity, claims the FM

Sectoral allocation

Agriculture: Rs 12,784 cr

Rural development: Rs 4,963 cr

Education: Rs 15,546 cr

Health: Rs 3,839 cr

Industry: Rs 400 cr

Social welfare, women and child development and welfare of SCs and STs: Rs 6,859 cr

Power: Rs 12,685 crore

Public health engineering: Rs 3,382 cr

Urban development: Rs 4,973 cr

District plan: Rs 400 cr

Transport: Rs 2,549 cr

Buildings and roads: Rs 3,827 cr                       

*Rs 100 crore allocated for SYL canal, but will pay any amount for construction, even if it calls for Rs 1,000 crore                       

Budget Highlights

First timer  

*Dispense with the Plan and Non-Plan classification of expenditure

*Present the Budget in terms of revenue and capital classification

*Classify the allocation of resources into rural and urban categories, wherever feasible, to have a clearer view about the fund flow to priority areas

*State of the economy--Gross State Domestic Product (GSDP)

*GSDP at constant prices (2011-12) has registered a growth of 9 per cent in 2015-16 as compared to 5.7 per cent in 2014-15

*In 2016-17, GSDP is growing at 8.7 per cent, and is expected to rebound to 9 per cent plus growth in 2017-18

*GSDP growth rate had never touched 9 per cent during the past five years of the previous government. It was 7.4 per cent in 2010-11, 8 per cent in 2011-12, 7.7 per cent in 2012-13, 8.2 per cent in 2013-14 and 5.7 per cent in 2014-15. The GSDP growth rate has remained significantly higher than the all-India GDP growth under the present government.

*Per capita income (PCI) growth rate was 4 per cent as compared to the All-India figure of 5.8 per cent in 2014-15.

*The per capita income growth rebounded to 7.5 per cent in 2015-16 as against the All-India figure of 6.6 per cent.

*In 2016-17, PCI is expected to show a growth rate of 7.2 per cent while All-India PCI is expected to grow at 5.9 per cent

*Primary sector (agriculture and allied sectors), registered a negative growth of 2 per cent in 2014-15, rebound to growth rate of 3.2 per cent in 2015-16.  In 2016-17, it is estimated to grow at 7 per cent

*Secondary sector (industry) had shown a robust growth of 7.7 per cent in 2015-16 as against only 2.3 per cent in 2014-15. In 2016-17, 6.1 per cent is the estimated growth for this sector

*Tertiary (services) sector has shown an impressive growth rate of 10.9 per cent in 2015-16 as compared to 10.3 per cent in 2014-15. In 2016-17, the growth rate of the sector is expected to be 10.8 per cent

*Share of services sector had increased from 49.6 per cent in 2014-15 to 50.7 per cent in 2015-16 and further to 51.7 per cent in 2016-17

*Share of secondary sector remains more or less constant in the range of 30 to 31 per cent during the past three years

*Share of primary sector has shown a declining trend from 19.3 per cent in 2014-15 to 18.3 per cent in 2015-16 and further to 18.1 per cent in 2016-17

Fiscal parameters

*In 2014-15, the revenue deficit was 1.9 per cent of GSDP, had declined to 1.6 per cent in 2015-16 and in 2016-17, it is likely to be 1.33 per cent. For the fiscal 2017-18, it is expected to go further down to less than 1 per cent and by the end of 2019-20, the target is to bring it down to zero

*Fiscal deficit has remained within the stipulated limit of 3 per cent of GSDP prescribed by the Fourteenth Finance Commission for the states. In 2015-16, the fiscal deficit of the State was 2.92 per cent of GSDP, while in 2016-17 it is expected to be 2.49 per cent of GSDP. For the next year, it is likely to be in the range of 2.61 (without UDAY) to 2.84 per cent (with UDAY) of GSDP

*Debt to GSDP ratio remained within the prescribed limit of 25 per cent. It was 16.21 percent in 2014-15, 17.4 percent in 2015-16 and 18.08 per cent in 2016-17 (RE), without UDAY; and 20.96 per cent in 2015-16 and 22.82 per cent in 2016-17 (RE), with UDAY. In 2017-18, it is estimated at 18.74 per cent without UDAY and 22.93 per cent with UDAY

*Total Revenue Receipts (TRR) as a ratio of GSDP is estimated at 11.02 per cent in 2016-17 as compared to 9.8 per cent in 2015-16 and 9.33 in 2014-15. It is a significant development having direct impact on state resources

*In 2017-18 Budget Estimates, TRR is projected at Rs 68,810.88 crore of which tax receipt is Rs 51,711.52 crore and non-tax receipt Rs 17,099.36 crore. This is an increase of 14.06 per cent in TRR in 2017-18 over 2016-17. In 2017-18, TRR is expected to be 11.12 per cent of the GSDP

*Interest payment to Total Revenue Receipts ratio was 16.98 per cent in 2014-15, increased to 17.42 per cent in 2015-16. However, it has declined to 15.94 per cent in 2016-17. Projected around 16.36 per cent for 2017-18

Capital Expenditure

As against the total capital expenditure of Rs 6,780.12 crore in 2015-16, it increased by 9.6 per cent to Rs 7,432 crore at RE 2016-17. For the next fiscal 2017-18, it is proposed to double it to Rs 14,932 crore, over RE 2016-17

In addition, capital expenditure to the tune of Rs 4,725 crore is likely to be incurred by public sector units in 2017-18. Hence, total capital expenditure is estimated to be Rs 19,657 crore in 2017-18