The Chief Minister of Haryana, Mr. Manohar Lal, presented the Budget for the state for the financial year 2021-22 on March 12, 2021.  Due to the impact of COVID-19, 2020-21 was not a standard year with respect to the performance of the economy and government finances.  In this note, 2021-22 budget estimates have been compared to the actuals for 2019-20 (in terms of compounded annual growth rate or CAGR).  A comparison of the revised estimates for 2020-21 and budget estimates for 2021-22 has been provided in the Annexure.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Haryana for 2021-22 (at current prices) is projected to be Rs 8,87,252 crore.  This is an annual increase of 7% over 2019-20.  As per the revised estimate of 2020-21, GSDP is estimated to decrease by 2% over the GSDP in 2019-20.
     
  • Total expenditure for 2021-22 is estimated to be Rs 1,55,645 crore, an annual increase of 14% over 2019-20.  As per the revised estimates, total expenditure in 2020-21 is estimated to be 3% less than the budget estimate (a decrease of Rs 4,605 crore).
     
  • Total receipts (excluding borrowings) for 2021-22 are estimated to be Rs 93,480 crore, an annual increase of 13% over 2019-20.  In 2020-21, as per revised estimates, total receipts (excluding borrowings) are estimated to fall short of the budget estimate by Rs 15,826 crore (a decrease of 17%).
     
  • In 2021-22, the revenue deficit is estimated to be Rs 29,194 crore, which is 3.29% of the GSDP.  In 2020-21, the state has estimated a revenue deficit of Rs 20,856 crore (2.73% of GSDP) at the revised stage.
     
  • The fiscal deficit in 2021-22 is estimated to be Rs 34,004 crore (3.83% of GSDP).  In 2020-21, the fiscal deficit is estimated to be 3.36% of GSDP at Rs 25,713 crore, which is higher than the budget estimate of 2.73% of GSDP at Rs 25,682 crore.

Policy Highlights

  • Medium term expenditure framework (MTEF) reserve fund: Rs 8,585 crore has been allocated towards the MTEF reserve fund.  The fund will be spent on special projects in health, agriculture and infrastructure sectors such as upgradation of district hospitals, micro irrigation, and expansion of metro network.
     
  • Agriculture: Kisan Mitra Yojana will be launched to facilitate financial services (such as deposit and withdrawal of cash) for farmers.  Har Khet Swasth Khet Abhiyan will be launched to focus on soil quality.  
     
  • Education: Rs 700 crore will be allocated towards the promotion of technology-based learning in all government schools (includes the provision of tablets and digital classrooms).  To promote inclusivity in education, free education will be provided to students of class 9 to class 12.  

Haryana’s Economy

  • GSDP: Haryana’s GSDP (at constant prices) is estimated to contract by 5.7% in 2020-21 as compared to 2019-20.  In comparison, the overall GDP of the country is estimated to contract at a higher rate of 8%.
     
  • Sectors: In 2020-21, the contribution of agriculture, manufacturing, and services sectors in the economy was 19%, 30%, and 51%, respectively.     The agriculture sector is estimated to grow by 4.3% in 2020-21 whereas the growth in manufacturing and services sectors is estimated to decline by 9.6% and 5.7%, respectively.  
     
  • Per capita income: The per capita income of Haryana in 2020-21 (at constant prices) was Rs 1,63,992, which is 7% lower than that in 2019-20 (Rs 1,76,199).
     
  • Unemployment: According to the Periodic Labour Force Survey (July 2018-June 2019), the unemployment rate in Haryana was 9.2%, which is significantly higher than the all-India level (5.8%).

Figure 1: Growth in GSDP and sectors in Haryana at constant prices (2011-12)

 image

Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.     Manufacturing includes mining.

Sources: Haryana Economic Survey 2020-21; PRS.

Budget Estimates for 2021-22

  • Total expenditure in 2021-22 is estimated to be Rs 1,55,645 crore.  This is an annual increase of 14% over the actual expenditure in 2019-20.  This expenditure is proposed to be met through the receipts (other than borrowings) of Rs 93,480 crore and borrowings of Rs 58,314 crore.  
     
  • Total receipts for 2021-22 (other than borrowings) are expected to register an annual increase of 13% over 2019-20.  As per the revised estimate for 2020-21, receipts (other than borrowings) are estimated to be 17% less than the budget estimate and total expenditure is estimated to be 3% less than the budgeted estimate.  
     
  • For 2021-22, the state has estimated a fiscal deficit of 3.83% of GSDP.  This is lower than the 4% limit allowed by the central government for the fiscal deficit of states for the year.  The fiscal deficit is estimated to be 3.36% of GSDP in 2020-21 (revised estimate), which is higher than the budget estimate (2.73% of GSDP).  In 2021-22, the state estimates to have a revenue deficit of Rs 29,194 crore (an annual increase of 31% from 2019-20).  In 2020-21, as per the revised figures, the revenue deficit for Haryana is estimated to be 2.73% of GSDP, which is higher than the budget estimate (1.64% of GSDP).    

Table 1: Budget 2021-22 - Key figures (in Rs crore)

Items

2019-20 Actuals

2020-21 Budgeted

2020-21 Revised

% change from BE 2020-21 to RE 2020-21

2021-22 Budgeted

Annualised Change (2019-20 to 2021-22 BE)

Total Expenditure

1,19,599

1,42,344

1,37,738

-3%

1,55,645

14%

A.  Receipts (except borrowings)

73,305

94,070

78,244

-17%

93,480

13%

B.  Borrowings

44,432

44,439

48,142

8%

58,314

15%

Total Receipts (A+B)

1,17,737

1,38,509

1,26,386

-9%

1,51,794

14%

Revenue Deficit

16,990

15,374

20,856

36%

29,194

31%

As % of GSDP

2.18%

1.64%

2.73%

 

3.29%

 

Fiscal Deficit

30,519

25,682

25,713*

0%

34,004

6%

As % of GSDP

3.91%

2.73%

3.36%

 

3.83%

 

Primary Deficit

14,931

7,544

8,070

7%

14,227 

-2%

As % of GSDP

1.91%

0.80%

1.06%

 

1.60%

 

Note: * Includes Rs 800 crore as contingency funds; BE is Budget Estimates; RE is Revised Estimates.

Sources: Haryana Budget Documents 2020-22; PRS.

Expenditure in 2021-22

Capital Outlay

In 2020-21, capital outlay at the revised stage (Rs 5,065 crore) is estimated to be 62% less than the budget estimate.       This is mainly due to a cut in capital outlay in certain sectors including: (i) Education, Sports, Art and Culture (Rs 436 crore at revised stage against budget estimate of 1,766 crore), and (ii) irrigation and flood control (Rs 1,361 crore at revised stage against budget estimate of Rs 2,321 crore).

Further, the agriculture and allied services observed a negative capital outlay of Rs 2,681 crore at the revised stage against the budget estimate of a positive capital outlay of Rs 232 crore.  This is mainly due to decline in the expenditure on the grain supply scheme from Rs 14,730 crore at the budget stage to Rs 12,301 crore at the revised stage (a decrease of 16%).  A negative capital outlay means that the recoveries in the sector have been higher than the expenditure.

  • Capital expenditure for 2021-22 is proposed to be Rs 38,718 crore, which is an annual increase of 6% over 2019-20.   Capital expenditure includes expenditure affecting the assets and liabilities of the state, such as: (i) capital outlay, i.e., expenditure which leads to the creation of assets (such as bridges and hospitals), and (ii) repayment and grant of loans by the state government.  The capital outlay in 2021-22 (Rs 9,318 crore) is estimated to annually decrease by 27% from 2019-20. 
     
  • Revenue expenditure for 2021-22 is proposed to be Rs 1,16,927 crore, which is an annual increase of 17% over 2019-20.  This includes expenditure such as payment of salaries, pensions, interest, and subsidies.   In 2020-21, revenue expenditure at Rs 96,991 crore is estimated to be 8% less than the budget estimate (Rs 1,05,338 crore).

Table 2: Expenditure budget 2021-22 (in Rs crore)

Items

2019-20 Actuals

2020-21 Budgeted

2020-21 Revised

% change from BE 2020-21 to RE 2020-21

2021-22 Budgeted

Annualised Change (2019-20 to 2021-22 BE)

Capital Expenditure

 34,751 

37,006 

40,747 

10%

38,718 

6%

of which Capital Outlay

 17,666 

13,201 

5,065 

-62%

9,318 

-27%

Revenue Expenditure

84,848 

 1,05,338 

96,991 

-8%

1,16,927 

17%

Total Expenditure

1,19,599 

1,42,344 

1,37,738 

-3%

1,55,645 

14%

A.  Debt Repayment

15,776 

22,592 

 33,781 

50%

28,161 

34%

B.  Interest Payments

   15,588 

18,138 

17,643 

-3%

19,776 

13%

Debt Servicing (A+B)

31,364

40,729

51,424

26%

47,938

24%

Note: BE is Budget Estimates; RE is Revised Estimates.  Capital outlay denotes expenditure which leads to the creation of assets.

Sources: Haryana Budget Documents 2021-22; PRS.  

 

Sectoral expenditure in 2021-22

The sectors listed below account for 59% of the total expenditure on all sectors by the state in 2021-22.  A comparison of Haryana’s expenditure on key sectors with that by the other states is given in Annexure 1.  

Table 3: Sector-wise expenditure under Haryana Budget 2021-22 (in Rs crore)

Sector

2019-20 Actuals

2020-21

BE

2020-21

RE

2021-22

BE

Annualised Change (2019-20 to 2021-22 BE)

Budget provisions 2021-22

Education, Sports, Arts, and Culture

14,868 

    20,169 

15,865 

   18,891 

13%

  • Rs 500 crore and Rs 317 crore has been allocated towards Sarva Shiksha Abhiyan, and mid-day meal programme, respectively.

Social Welfare and Nutrition

   8,209 

  10,168 

  9,870 

     9,970 

10%

  • Rs 5,547 crore has been allocated for pension under various social security schemes.

Health and Family Welfare

   4,983 

      6,512 

 6,240 

      7,317 

21%

  • Rs 883 crore has been allocated towards the strengthening of urban hospitals and dispensaries.
  • Rs 837 crore has been allocated as grants for National Rural Health Mission.

Energy

  12,845 

      7,437 

  6,520 

      7,162 

-25%

  • Rs 460 crore and Rs 100 crore have been allocated towards subsidy towards domestic consumer tariff, and subsidy towards relief against COVID-19, respectively.

Rural Development

    3,985 

      6,327 

  5,304 

     6,017 

23%

  • Rs 1,375 crore and Rs 1,040 crore has been allocated as grants to gram panchayats on recommendations of state and central finance commission, respectively.
  • Rs 500 crore has been allocated towards Haryana Gramin Vikas Yojana.

Police

   4,653 

      5,580 

   5,233 

     5,768 

11%

  • Rs 4,009 crore has been allocated towards expenditure on district police.

Irrigation and Flood Control

     2,893 

      5,020 

2,957 

   5,162 

34%

  • Rs 3,150 crore and Rs 1,023 crore has been allocated towards major and medium irrigation, respectively.
  • Rs 539 crore has been allocated towards Pradhan Mantri Krishi Sinchayee Yojana.

Transport

    4,898 

      5,473 

  4,232 

     5,161 

3%

  • Rs 2,156 crore has been allocated for Haryana Roadways.

Urban Development

 4,185 

      6,549 

 5,379 

    5,155 

11%

  • Rs 1,070 crore and Rs 423 crore has been provided as grants to the municipal committee on recommendations of state and central finance commissions, respectively.

Agriculture and allied activities

    7,678 

      5,950 

2,438 

      4,386 

-24%

  • Rs 518 crore has been allocated towards Pradhan Mantri Fasal Bima Yojana.

% of total expenditure on all sectors

67%

67%

63%

59%

 

 

Sources: Haryana Budget Documents 2021-22; PRS.

Committed expenditure:  Committed expenditure of a state typically includes expenditure on payment of salaries, pensions, and interest.  A larger proportion of the budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay.  In 2021-22, Haryana is estimated to spend Rs 55,454 crore on committed expenditure, which is 63% of its revenue receipts.  It comprises spending on salaries (30% of revenue receipts), pension (10% of revenue receipts), and interest payments (23% of revenue receipts).   Committed expenditure is estimated to grow 11% annually over 2019-20.  

Table 4: Committed Expenditure in 2021-22 (in Rs crore)

Items

2019-20 Actuals

2020-21

BE

2020-21

RE

% change from BE 2020-21 to RE 2020-21

2021-22 

BE

Annualised Change (2019-20 to 2021-22 BE)

Salaries

20,978 

27,012 

22,448 

-17%

26,478 

12%

Pensions

8,833 

9,000 

9,900 

10%

9,200 

2%

Interest

15,588 

18,138 

17,643 

-3%

19,776 

13%

Total Committed Expenditure

45,399 

54,150 

49,991 

-8%

55,454 

11%

Sources: Haryana Budget Documents 2021-22; PRS.
 

Receipts in 2021-22

  • Total revenue receipts for 2021-22 are estimated to be Rs 87,733 crore, an annual increase of 14% over actual revenue receipts in 2019-20.  Of this, Rs 63,738 crore (73%) will be raised by the state through its own resources, and Rs 23,995 crore (27%) will come from the Centre.  Resources from the Centre will be in the form of the state’s share in central taxes (8% of revenue receipts) and grants (19% of revenue receipts).  
     
  • In 2021-22, the state expects to receive Rs 5,000 crore as share capital from the disinvestment of co-operative societies.  In 2020-21, Haryana is estimated to receive Rs 1,600 crore as share capital from disinvestment of co-operative societies at the revised stage against the budget estimate of Rs 3,750 crore.
     
  • Devolution:  In 2021-22, receipts from the state’s share in central taxes are estimated to be Rs 7,275 crore, an annual increase of 1% over 2019-20.   In 2020-21, devolution at the revised stage is estimated to be 30% less than the budget estimate.  Note that the Union Budget 2021-22 estimates the devolution to states in 2020-21 to be 30% less than the budget estimate.
     
  • State’s own non-tax revenue:  In 2020-21, the own non-tax revenue of the state is estimated to be 50% less than the budget estimate.  A large part of this decrease is due to lower than expected revenue from urban development (Rs 1,800 crore at the revised stage against the budget estimate of Rs 7,500 crore) and road transport (Rs 701 crore against the budget estimate of Rs 2,500 crore).

Table 5: Break up of state government receipts (in Rs crore)

Items

2019-20 Actuals

2020-21

BE

2020-21

RE

% change from BE 2020-21 to RE 2020-21

2021-22 

BE

Annualised Change (2019-20 to 2021-22 BE)

State's Own Tax

           42,825 

       52,096 

           46,529 

-11%

       52,887 

11%

State's Own Non-Tax

             7,400 

       15,428

             7,763 

-50%

       10,851 

21%

Share in Central Taxes

             7,112 

         8,485 

             5,951 

-30%

         7,275 

1%

Grants-in-aid from Centre

           10,522 

       13,955 

           15,893 

14%

       16,720 

26%

Total Revenue Receipts

67,858

89,964

76,135

-15%

       87,733 

14%

Borrowings

           44,432 

       44,439 

           48,142 

8%

       58,314 

15%

Other receipts

             5,447 

         4,106 

             2,109 

-49%

         5,747 

3%

Total Capital Receipts

           49,878 

       48,545 

           50,251 

4%

       64,061 

13%

Total Receipts

        1,17,737 

    1,38,509 

        1,26,386 

-9%

    1,51,794 

14%

Note: BE is Budget Estimates; RE is Revised Estimates.  

Sources: Haryana Budget Documents 2021-22; PRS.

Table 6: Some of the major state’s own tax revenue sources (in Rs crore)

Head

2019-20 Actuals

2020-21

BE

2020-21

RE

% change from BE 2020-21 to RE 2020-21

2021-22 

BE

Annualised Change (2019-20 to 2021-22 BE)

% of Revenue Receipts in 2021-22

State GST

      18,873 

      22,350 

     20,350 

-9%

     24,300 

13%

28%

Sales Tax/ VAT

        8,398 

      10,702 

     10,350 

-3%

     11,000 

14%

13%

State Excise

        6,323 

        7,500 

       7,500 

0%

       9,200 

21%

10%

Stamps Duty and Registration Fees

        6,013 

        7,500 

       5,500 

-27%

       5,000 

-9%

6%

Taxes on Vehicles

        2,916 

        3,616 

       2,500 

-31%

       3,003 

1%

3%

GST Compensation Grants

        5,453 

        7,000 

       9,200 

31%

       9,200 

30%

10%

GST Compensation

The GST (Compensation to States) Act, 2017 guarantees states compensation for five years (till 2022) for any revenue loss arising due to GST implementation.  The Act guarantees states a 14% annual growth in their GST revenue, failing which compensation grants are provided to states to meet the shortfall.  These grants are funded through the GST compensation cess levied by the centre.  As the cess collection is not sufficient to meet the compensation requirement of states in 2020-21, a part of their requirement will be met through loans from the centre (which will be repaid using future cess collection).  As per the revised estimate of 2020-21, Haryana is estimated to receive a total of Rs 9,200 crore as GST compensation grants.  Haryana is estimated to receive Rs 4,344 crore as total borrowings for the shortfalls in GST compensation in 2020-21.

The state estimates to receive Rs 9,200 crore as GST compensation grants for the year 2021-22, which is equivalent to 10.5% of the revenue receipts estimated for that year.

Sources: Haryana Budget Documents 2021-22; PRS.

  • State’s own tax revenue:  Total own tax revenue of Haryana is estimated to be Rs 52,887 crore in 2021-22, an annual increase of 11% over 2019-20.  In 2020-21, total own tax revenue at the revised stage is estimated to be less than the budget estimate by Rs 5,567 crore (a decrease of 11%). 
  • In 2021-22, State GST (SGST) is estimated to be the largest source of the state’s own tax revenue (46% of the state’s own tax revenue).  SGST in 2021-22 is estimated to be Rs 24,300 crore (an annual increase of 13% over 2019-20).  
     
  • In 2021-22, Haryana is expected to generate Rs 11,000 crore through the collection of sales tax/ VAT, an annual increase of 14% over 2019-20.
     

Deficits, Debts and FRBM Targets for 2021-22

The Haryana Fiscal Responsibility and Budget Management Act, 2005 (FRBM) provides annual targets to progressively reduce the outstanding liabilities, revenue deficit, and fiscal deficit of the state government.  

Revenue Balance:  It is the difference of revenue expenditure and revenue receipts.   A revenue deficit implies that the government needs to borrow to finance its expenses which do not increase its assets or reduces its liabilities.  A revenue surplus implies that the revenue receipts of the state are sufficient to meet the revenue expenditure requirements.  The state estimates a revenue deficit of Rs 29,194 crore (or 3.29% of the GSDP) in 2021-22.

Fiscal Roadmap for 2021-26

The 15th Finance Commission recommended the following fiscal deficit targets for states for the 2021-26 period (as a % of GSDP): (i) 4% for 2021-22, (ii) 3.5% for 2022-23, and (iii) 3% for 2023-26.  The Commission estimates that this path will enable Haryana to bring down its total liabilities from 31.9% of GSDP in 2020-21 to 29.9% of GSDP at the end of 2025-26.

If a state is unable to fully utilise the sanctioned borrowing limit as specified above in any of the first four years (2021-25), it can avail the unutilised borrowing amount in subsequent years (within the 2021-26 period).  An additional borrowing worth 0.5% of GSDP will be allowed each year for the first four years (2021-25) upon undertaking certain power sector reforms including: (i) reduction in operational losses, (ii) reduction in revenue gap, (iii) reduction in payment of cash subsidy by adopting direct benefit transfer, and (iv) reduction in tariff subsidy as a percentage of revenue.  

Fiscal deficit:  It is the excess of total expenditure over total receipts.  This gap is filled by borrowings by the government and leads to an increase in total liabilities.  In 2021-22, the fiscal deficit is estimated to be Rs 34,004 crore (3.83% of GSDP).  As per the revised estimates, in 2020-21, the fiscal deficit of the state is expected to be 3.36% of GSDP, which is higher than the budget estimate of 2.73% of GSDP.  In both 2020-21 and 2021-22, states have been allowed a higher fiscal deficit than the usual 3% limit under the FRBM Act for undertaking expenditure to support economic recovery.

Enhanced borrowing limit in 2020-21: Given the situation due to COVID-19, the central government permitted states to increase their fiscal deficit up to 5% of GSDP in 2020-21.  All states are allowed to increase their fiscal deficit up to 4% of GSDP.  The remaining 1% of GSDP is conditional on the implementation of reforms by states in the following areas (0.25% of GSDP for each reform): (i) one nation one ration card, (ii) ease of doing business, (iii) urban local body/ utility, and (iv) power distribution.  As of February 19, 2021, Haryana is eligible to borrow Rs 4,292 crore for implementing reforms related to ease of doing business and one nation one ration card. 

Public debt: Public Debt is the accumulation of total borrowings at the end of a financial year.   In 2021-22, the public debt is estimated to be 25.92% of the GSDP, which is higher than the revised estimate for 2020-21 (23.27% of GSDP).

Table 7: Budget targets for deficits for Haryana in 2021-22 (% of GSDP)

Year

Revenue Deficit

Fiscal Deficit

Public Debt

2018-19 Actual

1.54%

2.98%

21.36%

2019-20 Actual

2.18%

3.91%

22.30%

2020-21 RE

2.73%

3.36%

23.27%

2021-22 BE

3.29%

3.83%

25.92%

Sources: Haryana Budget Documents 2021-22; PRS.

Figure 2: Revenue and Fiscal Balance (% of GSDP) 

image

Note: Revenue Balance data not available for 2022-23 and 2023-24; RE is Revised Estimates; BE is budget estimates.     Negative sign indicates a deficit, positive sign indicates a surplus.

Sources: Haryana Budget Documents 2021-22; PRS.  

Figure 3: Public debt targets (% of GSDP)

image

Note:  RE is Revised Estimates; BE is budget estimates.

Sources: Haryana Budget Documents 2021-22; PRS.  

Annexure 1:   Comparison of states’ expenditure on key sectors

The graphs below compare Haryana’s expenditure on six key sectors as a proportion of its total expenditure on all sectors.  The average for a sector indicates the average expenditure in that sector by 30 states (including Haryana) as per their budget estimates of 2020-21.[1]

  • Education:  Haryana has allocated 15% of its total expenditure for education in 2021-22.  This is less than than the average allocation (15.8%) for education by all states (2020-21 BE).
  • Health:  Haryana has allocated 5.8% of its total expenditure on health, which is marginally higher than the average allocation for health by states (5.5%).
     
  • Agriculture:  The state has allocated 3.5% of its total expenditure towards agriculture and allied activities.  This is significantly less than the average allocation for agriculture by states (6.3%).
     
  • Rural development:  Haryana has allocated 4.8% of its expenditure on rural development.  This is less than the average allocation for rural development by states (6.1%).
     
  • Police:  Haryana has allocated 4.6% of its total expenditure on police, which is marginally higher than the average expenditure on police by states (4.3%).
     
  • Roads and bridges:  Haryana has allocated 2% of its total expenditure on roads and bridges, which is significantly less than the average allocation by states (4.3%).

image

image

image

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Note: 2019-20, 2020-21 (BE), 2020-21 (RE), and 2021-22 (BE) figures are for Haryana.

Sources: Haryana Budget Documents 2021-22; various state budgets; PRS.

Annexure 2:  Recommendations of the 15th Finance Commission for 2021-26

The 15th Finance Commission’s (FC) report for the 2021-26 period was released on February 1, 2021.  For the 2021-26 period, the Commission has recommended the share of states in the divisible pool of central taxes to be 41%, same as that for 2020-21 (also recommended by the 15th FC in its report for 2020-21).  This is 1% point lower than the 42% share recommended by the 14th FC (for the 2015-20 period) to separately provide funds for the newly formed union territories of Jammu and Kashmir and Ladakh.   The 15th FC proposed revised criteria for determining the share of individual states (different from 14th FC).  Based on the 15th FC’s recommendations for the period 2021-26, Haryana will have a 0.45% share in the divisible pool of central taxes.  This implies that out of every Rs 100 of revenue in the divisible pool during 2021-26, Haryana will receive Rs 0.45.

Table 8:  Share of states in the divisible pool of central taxes under the 14th and 15th FC periods 

State

14th FC

15th FC

15th FC

% change

2015-20

2020-21

2021-26

2015-20
 to 2021-26

2020-21
 to 2021-26

Andhra Pradesh

1.81

1.69

1.66

-8.2%

-1.6%

Arunachal Pradesh

0.58

0.72

0.72

25.2%

-0.2%

Assam

1.39

1.28

1.28

-7.8%

-0.1%

Bihar

4.06

4.13

4.12

1.6%

0.0%

Chhattisgarh

1.29

1.40

1.40

8.0%

-0.3%

Goa

0.16

0.16

0.16

-0.3%

0.0%

Gujarat

1.30

1.39

1.43

10.1%

2.4%

Haryana

0.46

0.44

0.45

-1.6%

1.0%

Himachal Pradesh

0.30

0.33

0.34

13.6%

3.9%

Jammu & Kashmir

0.78

-

-

-

-

Jharkhand

1.32

1.36

1.36

2.8%

-0.2%

Karnataka

1.98

1.50

1.50

-24.5%

0.0%

Kerala

1.05

0.80

0.79

-24.8%

-0.9%

Madhya Pradesh

3.17

3.23

3.22

1.5%

-0.5%

Maharashtra

2.32

2.52

2.59

11.7%

3.0%

Manipur

0.26

0.29

0.29

13.3%

-0.3%

Meghalaya

0.27

0.31

0.31

16.6%

0.3%

Mizoram

0.19

0.21

0.21

6.1%

-1.2%

Nagaland

0.21

0.24

0.23

11.5%

-0.7%

Odisha

1.95

1.90

1.86

-4.8%

-2.2%

Punjab

0.66

0.73

0.74

11.9%

1.1%

Rajasthan

2.31

2.45

2.47

7.1%

0.8%

Sikkim

0.15

0.16

0.16

3.2%

0.0%

Tamil Nadu

1.69

1.72

1.67

-1.0%

-2.6%

Telangana

1.02

0.88

0.86

-15.8%

-1.5%

Tripura

0.27

0.29

0.29

7.7%

-0.1%

Uttar Pradesh

7.54

7.35

7.36

-2.5%

0.0%

Uttarakhand

0.44

0.45

0.46

3.7%

1.3%

West Bengal

3.08

3.08

3.08

0.3%

0.1%

Total

42.00

41.00

41.00

   

Note: % share in the divisible pool has been rounded off.  Although the 15th FC recommended the same criteria for 2020-21 and 2021-26 periods, the reference period for computation on some underlying indicators are different. This is why the share in the divisible pool in 2020-21 and 2021-26 differ for states.
Sources: Reports of 14th and 15th FCs; Union Budget Documents 2021-22; PRS.

The 15th FC recommended grants worth Rs 10.3 lakh crore for states over five years (2021-26).  A portion of these grants will be conditional.  17 states will receive revenue deficit grants during this period.     Sector-specific grants include grants for sectors such as health, agriculture, and education.  Grants to local governments include: (i) Rs 1.2 lakh crore for urban local bodies, (ii) Rs 2.4 lakh crore for rural local bodies, and (iii) health grants worth Rs 70,000 crore through local bodies for healthcare infrastructure.  

Table 9: Grants recommended for 2021-26 (Rs crore)

Grants

Total

Haryana

Revenue deficit grants

 2,94,514

132

Local governments grants

 4,36,361

9,066*

Sector-specific grants

 1,29,987

3,005#

Disaster management grants

 1,22,601

2,715

State-specific grants

49,599

2,003

Total

10,33,062

16,921

Note:  This does not include competition-based grants including *grants for incubation of new cities (part of local bodies grants), and #grants for school education, and aspirational districts and blocks.
Source: Report of 15th FC; PRS.

Grants recommended for Haryana include: (i) Rs 132 crore as revenue deficit grants, (ii) Rs 9,066 crore as grants for local bodies, (iii) Rs 2,715 crore as disaster management grants, and (iv) Rs 3,005 crore as state-specific grants.     The state-specific grants are for purposes such as: (i) strengthening and upgradation of health infrastructure, (ii) irrigation and water resources, and (iii) medical education and research.

Table 10: Taxes devolved to states as per Union Budget 2021-22

State

2019-20

2020-21
 Revised

2021-22
 Budget

Andhra Pradesh

29,421

22,611

26,935

Arunachal Pradesh

9,363

9,681

11,694

Assam

22,627

17,220

20,819

Bihar

66,049

55,334

66,942

Chhattisgarh

21,049

18,799

22,676

Goa

2,583

2,123

2,569

Gujarat

21,077

18,689

23,148

Haryana

7,408

5,951

7,275

Himachal Pradesh

4,873

4,394

5,524

Jammu & Kashmir

12,623

-38

-

Jharkhand

21,452

18,221

22,010

Karnataka

32,209

20,053

24,273

Kerala

17,084

10,686

12,812

Madhya Pradesh

51,584

43,373

52,247

Maharashtra

37,732

33,743

42,044

Manipur

4,216

3,949

4,765

Meghalaya

4,387

4,207

5,105

Mizoram

3,144

2,783

3,328

Nagaland

3,403

3,151

3,787

Odisha

31,724

25,460

30,137

Punjab

10,777

9,834

12,027

Rajasthan

37,554

32,885

40,107

Sikkim

2,508

2,134

2,582

Tamil Nadu

27,493

23,039

27,148

Telangana

16,655

11,732

13,990

Tripura

4,387

3,899

4,712

Uttar Pradesh

1,22,729

98,618

1,19,395

Uttarakhand

7,189

6,072

7,441

West Bengal

50,051

41,353

50,070

Total

6,83,353

5,49,959

6,65,563

Note: Actuals for 2019-20 and Revised Estimates for 2020-21 have been reported in the Union Budget after adjusting for excess or less devolution in previous years.  
Sources: Union Budget Documents 2021-22; PRS.

Annexure 3:  Comparison of 2020-21 Revised and 2021-22 Budget Estimates

The following tables compare the budget estimates for 2021-22 with the revised estimates for 2020-21.

Table 11: Overview of Revised Estimates for 2020-21 and Budget Estimates for 2021-22 (in Rs crore)

Particular

2020-21 RE

2021-22 BE

% change from 2020-21 RE to 2021-22 BE

Receipts (1+2)

1,26,386

1,51,794

20%

Receipts except Borrowings

78,244

93,480

19%

1. Revenue Receipts (a+b+c+d)

76,135

87,733

15%

a. Own Tax Revenue

46,529

52,887

14%

b. Own Non-Tax Revenue

7,763

10,851

40%

c. Share in central taxes

5,951

7,275

22%

d. Grants-in-aid from the Centre

15,893

16,720

5%

Of which GST compensation

9,200

9,200

0%

2. Capital Receipts

50,251

64,061

27%

a. Borrowings

48,142

58,314

21%

Of which GST compensation loan

0

-

-

Expenditure (3+4)

1,37,738

1,55,645

13%

3. Revenue Expenditure

96,991

1,16,927

21%

4. Capital Expenditure

40,747

38,718

-5%

i. Capital Outlay

5,065

9,318

84%

ii. Debt Repayment

33,781

28,161

-17%

 

Particular

2020-21 RE

2021-22 BE

% change from 2020-21 RE to 2021-22 BE

Revenue Deficit

20,856

29,194

40%

Revenue Deficit (as % of GSDP)

2.73%

3.29%

 

Fiscal Deficit

25,713

34,004

32%

Fiscal Deficit (as % of GSDP)

3.36%

3.83%

 

Note: Negative revenue balance indicates revenue deficit.

Sources: Haryana Budget Documents 2021-22; PRS.

Table 12: Key components of State’s Own Tax Revenue (in Rs crore)

Tax

2020-21 RE

2021-22 BE

% change from 2020-21 RE to 2021-22 BE

SGST

20,350

24,300

19.4%

Sales Tax/VAT

10,350

11,000

6.3%

State Excise Duty

7,500

9,200

22.7%

Stamps Duty and Registration Fees

5,500

5,000

-9.1%

Taxes on Vehicles

2,500

3,003

20.1%

Taxes and Duties on Electricity

300

345

15.0%

Land Revenue

22

25

13.6%

Sources: Haryana Budget Documents 2021-22; PRS. 

Table 13: Allocation towards key sectors (in Rs crore)

Sector

2020-21 RE

2021-22 BE

% change from 2020-21 RE to 2021-22 BE

Education, Sports, Arts, and Culture

15,865

18,891

19%

Social Welfare and Nutrition

9,870

9,970

1%

Health and Family Welfare

6,240

7,317

17%

Energy

6,520

7,162

10%

Rural Development

5,304

6,017

13%

Police

5,233

5,768

10%

Irrigation and Flood Control

2,957

5,162

75%

Transport

4,232

5,161

22%

of which Roads and Bridges

2,306

2,583

12%

Urban Development

5,379

5,155

-4%

Agriculture and allied activities

2,438

4,386

80%

Water Supply and Sanitation

3,283

3,387

3%

Housing

152

565

272%

Welfare of SC, ST, OBC, and Minorities

513

526

2%

Sources: Haryana Budget Documents 2021-22; PRS.

 

[1] The 30 states include the Union Territory of Delhi and Union Territory of Jammu and Kashmir.

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