The Finance Minister, Captain Abhimanyu Singh Sandhu, presented the Budget for Haryana for the financial year 2019-20 on February 25, 2019.
Budget Highlights
- The Gross State Domestic Product of Haryana for 2019-20 (at current prices) is estimated to be Rs 7,84,910 This is 11% higher than the estimate for 2018-19.
- Total expenditure for 2019-20 is estimated to be Rs 1,32,166 crore, a 9.8% increase over the revised estimate of 2018-19. In 2018-19, there is estimated to be an increase of Rs 5,177 crore (4.5% of the budgeted estimate) of expenditure as per the revised estimate.
- Total receipts (excluding borrowings) for 2019-20 are estimated to be Rs 89,447 crore, an increase of 8.8% as compared to the revised estimate of 2018-19. In 2018-19, total receipts (excluding borrowings) are estimated to fall short of the budgeted estimate by Rs 1,087 crore (1.3%).
- Revenue deficit for the next financial year is targeted at Rs 12,022 crore, or 1.53% of the Gross State Domestic Product (GSDP). Fiscal deficit is targeted at Rs 24,240 crore (3.09% of GSDP).
- The sectors of Rural Development (24%), Social Welfare and Nutrition (13%), and Health and Family Welfare (12%) saw the highest increase in allocations.
Policy Highlights
- Agriculture and allied sectors: Two new schemes were announced in the Budget Speech which aim at providing financial and social security to: (i) families of cultivating farmers in possession of land up to five acres, and (ii) families of workers in unorganised sector with a family income of less than Rs 15,000 per month. An amount of Rs 1,500 crore has been allocated for the same.
- Infrastructure projects: In order to upgrade the infrastructure of the state, the government will reconstruct 2,300 dilapidated bridges from 2019-20 to 2023-24. The government will also construct the SYL Canal to get the state’s share of water from the river Ravi-Beas. An amount of Rs 100 crore has been allocated for the construction of the canal.
- Irrigation: The government is implementing a scheme to provide solar water pumping systems to farmers to meet their irrigation needs. Under the scheme, farmers are provided with 2 HP and 5 HP solar water pumping systems with a state subsidy of 75%. It was announced that 50,000 off-grid solar pumps of 3 HP to 10 HP capacity will be installed in two phases.
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Haryana’s Economy · GSDP: The growth rate of Haryana’s GSDP (at current prices) has increased from 9.2% in 2014-15 to 12.8% in 2016-17. · Sectors: In 2016-17, agriculture, manufacturing, and services contributed to 19%, 31% and 50% of the GSVA respectively. These sectors grew by 13.2%, 9% and 13.7%, respectively. · Per capita income: The per capita GSDP of Haryana in 2016-17 (at current prices) was Rs 1,99,612. This is 11.2% higher than that in 2015-16. · Unemployment: According to the 5th Annual Employment-Unemployment Survey (2015-16), among the major states, Haryana had an unemployment rate of 4.7% as compared to the all-India level of 5%.
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Figure 1: Growth in GSDP and sectors in Haryana (year-on-year)
Note: All numbers are as per current prices. Sources: MOSPI; PRS. |
Budget Estimates for 2019-20
- The total expenditure in 2019-20 is targeted at Rs 1,32,166 crore. This is 9.8% higher than the revised estimates of 2018-19. This expenditure is proposed to be met through receipts (other than borrowings) of Rs 89,447 crore and borrowings of Rs 42,767 crore. Total receipts for 2019-20 (other than borrowings) are expected to be 8.8% higher than the revised estimate of 2018-19.
Table 1: Budget 2019-20 - Key figures (in Rs crore)
|
Items |
2017-18 Actuals |
2018-19 Budgeted |
2018-19 Revised |
% change from BE 2018-19 to RE 2018-19 |
2019-20 Budgeted |
% change from RE 2018-19 to BE 2019-20 |
|
Total Expenditure |
94,529 |
1,15,198 |
1,20,375 |
4.5% |
1,32,166 |
9.8% |
|
A. Receipts (except borrowings) |
69,076 |
83,333 |
82,246 |
-1.3% |
89,447 |
8.8% |
|
B. Borrowings |
21,490 |
31,833 |
34,773 |
9.2% |
42,767 |
23.0% |
|
Total Receipts (A+B) |
90,565 |
1,15,166 |
1,17,019 |
1.6% |
1,32,214 |
13.0% |
|
Revenue Deficit |
10,562 |
8,254 |
8,507 |
3.1% |
12,022 |
41.3% |
|
As % of GSDP |
1.69% |
1.17% |
1.20% |
|
1.53% |
|
|
Fiscal Deficit |
19,154 |
20,439 |
20,573 |
0 |
24,240 |
17.8% |
|
As % of GSDP |
3.06% |
2.89% |
2.91% |
|
3.09% |
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Notes: BE is Budget Estimate; RE is Revised Estimate. GSDP for 2019-20 is Rs 7,84,910 crore. GSDP for 2018-19 BE and 2018-19 RE taken to be Rs 7,07,126 crore.
Sources: Haryana Budget Documents 2019-20; PRS.
- Revenue deficit: It is the excess of revenue expenditure over revenue receipts. A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets. The government has estimated a revenue deficit of Rs 12,022 crore in 2019-20 (or 1.53% of GSDP). This is 41.3% higher than the revised estimate for 2018-19.
- Fiscal deficit: It is the excess of expenditure over receipts. This gap is filled by borrowings by the government and leads to an increase in total liabilities. In 2019-20, fiscal deficit of Rs 24,240 crore (or 3.09% of GSDP) is estimated. This is an increase of Rs 3,667 crore (or 17.8%) over the revised estimate of 2018-19.
Expenditure in 2019-20
- Capital expenditure for 2019-20 is proposed to be Rs 37,924 crore, which is an increase of 8.2% over the revised estimates of 2018-19. Capital expenditure includes expenditure affecting the assets and liabilities of the state, such as: (i) capital outlay, i.e. expenditure which leads to creation of assets (such as bridges and hospitals), and (ii) repayment and grant of loans by the state government.
- Haryana’s capital outlay for 2019-20 is estimated to be Rs 16,260 crore, which is 1.9% higher than the revised estimate of 2018-19.
- Revenue expenditure for 2019-20 is proposed to be Rs 94,242 crore, which is an increase of 10.4% over revised estimates of 2018-19. This expenditure includes payment of salaries, maintenance, etc.
Table 2: Expenditure budget 2019-20 (in Rs crore)
|
Items |
2017-18 Actuals |
2018-19 Budgeted |
2018-19 Revised |
% change from BE 2018-19 to RE 2018-19 |
2019-20 Budgeted |
% change from RE 2018-19 to BE 2019-20 |
|
Capital Expenditure |
21,272 |
30,012 |
35,041 |
16.8% |
37,924 |
8.2% |
|
of which Capital Outlay |
13,538 |
15,780 |
15,964 |
1.2% |
16,260 |
1.9% |
|
Revenue Expenditure |
73,257 |
85,187 |
85,335 |
0.2% |
94,242 |
10.4% |
|
Total Expenditure |
94,529 |
1,15,198 |
120,375 |
4.5% |
1,32,166 |
9.8% |
|
A. Debt Repayment |
6,339 |
12,466 |
17,596 |
41.2% |
20,257 |
15.1% |
|
B. Interest Payments |
11,961 |
14,037 |
13,847 |
-1.4% |
16,633 |
20.1% |
|
Debt Servicing (A+B) |
18,300 |
26,503 |
31,443 |
18.6% |
36,890 |
17.3% |
Note: Capital outlay denotes expenditure which leads to creation of assets.
Sources: Haryana Budget Documents 2019-20; PRS.
Sector expenditure in 2019-20
The sectors listed below account for 58% of the total budgeted expenditure of Haryana in 2019-20. A comparison of Haryana’s expenditure on key sectors with that by other states can be found in the Annexure.
Table 3: Sector-wise expenditure for Haryana Budget 2019-20 (Rs crore)
|
Sector |
2017-18 Actuals |
2018-19 Budgeted |
2018-19 Revised |
2019-20 Budgeted |
% change from RE 2018-19 to BE 2019-20 |
Budget provisions for 2019-20 |
|
Education |
12,187 |
14,935 |
14,383 |
15,346 |
7% |
· Rs 6,101 crore and Rs 3,389 crore has been allocated towards government primary and secondary schools, respectively. |
|
Energy |
13,086 |
12,076 |
13,778 |
13,172 |
-4% |
· Rs 2,127 crore will be spent towards interest payments under the UDAY scheme. |
|
Water Supply, Sanitation, Housing and Urban Development |
7,993 |
9,553 |
9,460 |
9,691 |
2% |
· Rs 400 crore each has been allocated towards Smart Cities and AMRUT Missions. |
|
Social Welfare and Nutrition |
6,447 |
7,854 |
7,622 |
8,645 |
13% |
· Rs 4,865 crore has been allocated towards providing pension under various social security schemes. |
|
Transport |
4,685 |
5,446 |
5,000 |
5,442 |
9% |
· Rs 2,261 crore has been allocated towards development of Haryana Roadways. · Rs 833 crore has been allocated towards Roads and Bridges. |
|
Rural Development |
2,981 |
4,332 |
4,309 |
5,365 |
24% |
· Rs 500 crore has been allocated towards Haryana Gramin Vikas Yojana. · Rs 1,177 crore has been allocated as assistance to Gram Panchayats on the recommendation of the 14th Finance Commission. |
|
Police |
3,802 |
4,687 |
4,799 |
5,043 |
5% |
· Rs 3,206 crore and Rs 450 crore have been allocated for district police and special police force, respectively. |
|
Health and Family Welfare |
3,376 |
4,769 |
4,475 |
5,016 |
12% |
· Rs 1,094 crore has been allocated towards hospitals and dispensaries. · Rs 995 crore has been allocated towards Primary Health Centres in rural areas. |
|
Agriculture and allied activities |
4,086 |
4,660 |
4,516 |
4,539 |
1% |
· In the Budget Speech, an amount of Rs 1,500 crore was announced for providing financial and social security to farmers and workers in the unorganized sector. |
|
Irrigation and Flood Control |
2,437 |
3,322 |
3,204 |
3,400 |
6% |
· Rs 711 crore has been allocated towards the West Jamuna Canal Project. |
|
Welfare of SC/ ST/OBC and Minorities |
400 |
738 |
513 |
516 |
1% |
· Rs 177 crore has been allocated for post-matric scholarships for SC and backward classes. |
|
% of total expenditure |
65% |
63% |
60% |
58% |
|
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Source: Haryana Budget Speech 2019-20, Haryana Annual Financial Statement 2019-20, Haryana Demand for Grants 2019-20; PRS.
Receipts in 2019-20
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In 2019-20, Haryana estimates to receive Rs 21,089 crore from the centre. Of this, the share in central taxes is Rs 11,217 crore, which is a 36% increase from the revised estimate of 2018-19. Note that, in 2018-19, the share in central taxes decreased by 11.2% (Rs 1,045 crore) As per the revised estimate of 2018-19, grants received by the state from the central government increased by 18.2% from the budget estimate. In 2019-20, these grants are estimated to further increase by 16%, to Rs 9,873 crore. |
- The total revenue receipts for 2019-20 are estimated to be Rs 82,219 crore, an increase of 7% over the revised estimates of 2018-19. Of this, Rs 61,130 (74% of the revenue receipts) crore will be raised by the state through its own resources, and Rs 21,089 crore (26% of the revenue receipts) will be devolved by the centre in the form of grants and the state’s share in taxes.
- Non Tax Revenue: Haryana has estimated to generate Rs 10,025 crore through non-tax sources in 2019-20. Of this, Rs 1,623 crore will be received as interest from various departmentally commercial and public sector undertakings.
Table 5: Break up of state government receipts (Rs crore)
|
Items |
2017-18 Actuals |
2018-19 Budgeted |
2018-19 Revised |
% change from BE 2018-19 to RE 2018-19 |
2019-20 Budgeted |
% change from RE 2018-19 to BE 2019-20 |
|
State's Own Tax |
41,099 |
49,132 |
50,946 |
3.7% |
51,105 |
0.3% |
|
State's Own Non-Tax |
9,113 |
11,303 |
9,120 |
-19.3% |
10,025 |
9.9% |
|
Share in Central Taxes |
7,298 |
9,300 |
8,255 |
-11.2% |
11,217 |
35.9% |
|
Grants-in-aid from Centre |
5,185 |
7,199 |
8,507 |
18.2% |
9,873 |
16.1% |
|
Total Revenue Receipts |
62,695 |
76,933 |
76,828 |
-0.1% |
82,219 |
7.0% |
|
Borrowings |
21,490 |
31,833 |
34,773 |
9.2% |
42,767 |
23.0% |
|
Other receipts |
6,381 |
6,400 |
5,418 |
-15.3% |
7,227 |
33.4% |
|
Total Capital Receipts |
27,871 |
38,233 |
40,191 |
5.1% |
49,995 |
24.4% |
|
Total Receipts |
90,565 |
1,15,166 |
1,17,019 |
1.6% |
1,32,214 |
13.0% |
Note: All numbers have been rounded off to the nearest decimal.
Sources: Haryana Budget Documents 2019-20; PRS.
- Tax Revenue: Total own tax revenue of Haryana is estimated to be Rs 51,105 crore in 2019-20. The composition of the state’s tax revenue is shown in Figure 2. The tax to GSDP ratio is targeted at 6.5% in 2019-20, which is in the same range as the revised estimate of 7% in 2018-19. This implies that growth in collection of taxes has been at par with the growth in the economy.
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Figure 2: Composition of the state’s tax revenue in 2019-20 (Budget Estimates)
Note: The chart excludes some other taxes which form the rest 1% of the state tax revenue. Sources: Haryana Annual Financial Statement 2019-20; PRS. |
· State Goods and Services Tax (SGST) is the largest component of tax revenue for the state (45%). It is expected to generate Rs 22,750 crore in 2019-20. This is a 4% decrease from the revised estimates of 2018-19. · In 2019-20, Haryana is expected to generate Rs 10,900 crore through levy of sales tax (on items such as petroleum products), and VAT. This is a decrease of 3% over the revised estimates of 2018-19. · Further, in 2019-20 the state is expected to generate Rs 7,000 crore from state excise duty, and Rs 6,500 crore from stamp duty and registration fees. This is an increase of 9% and 8% respectively, from the revised estimates of 2018-19. |
Annexure
The graphs below compare Haryana’s expenditure on four key sectors as a proportion of its total budget, with 26 other states (using budget estimates of 2018-19).[1]
- Education: Haryana has allocated 13.9% of its expenditure on education in 2019-20. This is lower than the average expenditure allocated to education by other states.
- Health: Haryana has allocated 4.5% of its total expenditure on health, which is marginally lower than the average expenditure of other states.
- Agriculture and allied activities: The state has allocated 4.1% of its total budget towards agriculture and allied activities. This is lower than the allocations of other states (6.4%).
- Rural development: Haryana has allocated 4.9% of its expenditure on rural development. This is lower than the average (6.1%) of the other states.
- Roads and bridges: Haryana has allocated 2.5% of its total expenditure on roads and bridges, which is lower than the average expenditure of other states.
- Police: Haryana has allocated 4.6% of its total expenditure on police, which is higher than the average expenditure of other states (3.9%).
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Note: 2017-18, 2018-19 (BE), 2018-19 (RE), and 2019-20 (BE) figures are for Haryana.
Source: Annual Financial Statement (2018-19 and 2019-20), various state budgets; PRS.
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[1] The 26 other states include all states except Arunachal Pradesh, Manipur, and Meghalaya. It also includes the Union Territory of Delhi.