The Finance Minister of Jharkhand, Dr. Rameshwar Oraon, presented the Budget for the state for the financial year 2021-22 on March 3, 2021. Due to 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 Jharkhand for 2021-22 (at current prices) is projected to be Rs 3,61,381 crore. This is an annual increase of 5% over 2019-20. As per the revised estimates, in 2020-21, GSDP is estimated to decrease by 3% over the previous year (against an estimated growth of 12% from the revised stage of 2019-20 to the budget stage of 2020-21).
- Total expenditure for 2021-22 is estimated to be Rs 91,277 crore, an annual increase of 14% over 2019-20. As per the revised estimates, total expenditure in 2020-21 is estimated to be 7% less than the budget estimate (a decrease of Rs 6,363 crore).
- Total receipts (excluding borrowings) for 2021-22 are estimated to be Rs 76,777 crore, an annual increase of 15% over 2019-20. In 2020-21, total receipts (excluding borrowings) are estimated to fall short of the budget estimate by Rs 8,363 crore (a decrease of 11%).
- In 2021-22, the state is estimated to have a revenue surplus of Rs 952 crore, which is 0.26% of the GSDP. In 2020-21, the state has estimated a revenue deficit of Rs 869 crore (0.27% of GSDP) at the revised stage against a revenue surplus of Rs 1,993 crore at the budget stage.
- Fiscal deficit in 2021-22 is estimated to be Rs 10,211 crore (2.83% of GSDP). In 2020-21, fiscal deficit is estimated to be 3.22% of GSDP, which is higher than the budget estimate of 2.15% of GSDP.
Policy Highlights
- Education: Padhna Likhna Abhiyaan will be launched to achieve 100% literacy in the state. 500 primary schools will be developed into exemplar schools in 2021-22. In 2021-22, Jharkhand Tribal University and Jharkhand Open University will be established to ensure reach of higher education among students in remote rural regions of the state. A central placement cell will be established to ensure skill development and provide employment opportunities to students.
- Agriculture: Community solar irrigation facilities will be provided under the Kisan Samriddhi Yojana in various blocks of the state. In 2021-22, Rs 1,200 crore has been allocated for Kisan Karj Mafi Yojana.
- Health: In 2021-22, Janaushadhi Kendras will be opened in every medical college, sadar hospital and community health centre of the state.
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Jharkhand’s Economy
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Figure 1: Growth in GSDP and sectors in Jharkhand at constant prices (2011-12) Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation. Sources: Ministry of Statistics and Programme Implementation; PRS. |
Budget Estimates for 2021-22
- Total expenditure in 2021-22 is estimated to be Rs 91,277 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 76,777 crore and borrowings of Rs 14,500 crore. Total receipts for 2021-22 (other than borrowings) are expected to register an annual increase of 15% over 2019-20.
- For 2021-22, the state has estimated a fiscal deficit of 2.83% of GSDP. This is lower than 4% limit for fiscal deficit of states allowed by the central government for 2021-22. Fiscal deficit is estimated to be 3.22% of GSDP in 2020-21 (as per revised estimate). In 2021-22, the state estimates to have a revenue surplus of Rs 952 crore (an annual decrease of 30% from 2019-20).
- As per the revised estimates for 2020-21, the receipts (other than borrowings) are estimated to be 11% less than the budget estimate, whereas the total expenditure is estimated to be 7% less than the budgeted. Jharkhand observed a revenue surplus in 2019-20, however, in 2020-21, as per revised figures, it is estimated to have a revenue deficit of Rs 869 crore (0.27% 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 |
70,732 |
86,370 |
80,007 |
-7% |
91,277 |
14% |
|
A. Receipts (except borrowings) |
58,466 |
75,370 |
67,007 |
-11% |
76,777 |
15% |
|
B. Borrowings |
9,593 |
11,000 |
13,000 |
18% |
14,500 |
23% |
|
Total Receipts (A+B) |
68,059 |
86,370 |
80,007 |
-7% |
91,277 |
16% |
|
Revenue Balance |
1,961 |
1,993 |
-869 |
-144% |
952 |
-30% |
|
As % of GSDP |
0.60% |
0.52% |
-0.27% |
|
0.26% |
|
|
Fiscal Deficit |
8,034 |
8,243 |
10,243 |
24% |
10,211 |
38% |
|
As % of GSDP |
2.44% |
2.15% |
3.22% |
|
2.83% |
|
|
Primary Deficit |
2,726 |
2,598 |
4,598 |
77% |
4,024 |
763% |
|
As % of GSDP |
0.83% |
0.68% |
1.45% |
|
1.11% |
|
Note: BE is Budget Estimates; RE is Revised Estimates; Negative revenue balance indicates revenue deficit.
Sources: Jharkhand Budget Documents 2020-22; PRS.
Expenditure in 2021-22
- Capital expenditure for 2021-22 is proposed to be Rs 15,522 crore, which is an annual increase of 4% 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. Capital outlay in 2021-22 (Rs 9,661 crore) is estimated to decrease at an annualised rate of 1% over 2019-20.
- Revenue expenditure for 2021-22 is proposed to be Rs 75,755 crore, which is an annual increase of 16% over 2019-20. This includes expenditure such as payment of salaries, pensions, interest, and subsidies. In 2020-21, revenue expenditure is estimated to be 7% less than the budget estimate.
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 |
14,276 |
13,054 |
12,186 |
-7% |
15,522 |
4% |
|
of which Capital Outlay |
9,879 |
8,653 |
8,069 |
-7% |
9,661 |
-1% |
|
Revenue Expenditure |
56,456 |
73,316 |
67,821 |
-7% |
75,755 |
16% |
|
Total Expenditure |
70,732 |
86,370 |
80,007 |
-7% |
91,277 |
14% |
|
A. Debt Repayment |
4,231 |
2,757 |
2,757 |
0% |
4,289 |
1% |
|
B. Interest Payments |
5,308 |
5,646 |
5,646 |
0% |
6,187 |
8% |
|
Debt Servicing (A+B) |
9,539 |
8,402 |
8,402 |
0% |
10,476 |
5% |
Note: BE is Budget Estimates; RE is Revised Estimates. Capital outlay denotes expenditure which leads to the creation of assets.
Sources: Jharkhand Budget Documents 2021-22; PRS.
Sectoral expenditure in 2021-22
The sectors listed below account for 72% of the total expenditure on sectors by the state in 2021-22. A comparison of Jharkhand’s expenditure on the key sectors with that by other states can be found in Annexure 1.
Table 3: Sector-wise expenditure under Jharkhand 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 |
10,005 |
13,504 |
11,681 |
13,595 |
17% |
|
|
Rural Development |
9,864 |
11,415 |
11,922 |
12,900 |
14% |
|
|
Social Welfare and Nutrition |
4,170 |
5,701 |
6,357 |
6,624 |
26% |
|
|
Police |
5,708 |
6,023 |
5,544 |
5,971 |
2% |
|
|
Agriculture and allied activities |
3,159 |
4,718 |
3,421 |
4,990 |
26% |
|
|
Health and Family Welfare |
3,138 |
4,587 |
4,338 |
4,445 |
19% |
|
|
Roads and Bridges |
3,917 |
3,893 |
3,893 |
4,018 |
1% |
|
|
Water Supply and Sanitation |
1,194 |
3,106 |
1,520 |
3,387 |
68% |
|
|
Urban Development |
2,517 |
2,483 |
2,843 |
2,775 |
5% |
|
|
Energy |
3,000 |
3,353 |
2,268 |
2,712 |
-5% |
|
|
% of total expenditure on all sectors |
70% |
72% |
71% |
72% |
|
|
Sources: Jharkhand 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 budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay. In 2021-22, Jharkhand is estimated to spend Rs 28,037 crore on committed expenditure, which is 37% of its revenue receipts. It comprises spending on salaries (20% of revenue receipts), pension (9% of revenue receipts), and interest payments (8% of revenue receipts). Committed expenditure is estimated to grow at 9% 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 |
12,126 |
15,542 |
14,192 |
-9% |
15,046 |
11% |
|
Pensions |
6,005 |
7,060 |
6,560 |
-7% |
6,804 |
6% |
|
Interest |
5,308 |
5,646 |
5,646 |
0% |
6,187 |
8% |
|
Total Committed Expenditure |
23,439 |
28,248 |
26,398 |
-7% |
28,037 |
9% |
Sources: Jharkhand Budget Documents 2021-22; PRS.
Receipts in 2021-22
- Total revenue receipts for 2021-22 are estimated to be Rs 76,707 crore, an annual increase of 15% over actual revenue receipts in 2019-20. Of this, Rs 36,765 crore (48%) will be raised by the state through its own resources, and Rs 39,942 crore (52%) will come from the Centre. Resources from the Centre will be in the form of state’s share in central taxes (29% of revenue receipts) and grants (23% of revenue receipts).
- Devolution: In 2021-22, receipts from the state’s share in central taxes are estimated to be Rs 22,050 crore, an annual increase of 3% 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 8% higher than the budget estimate. This increase is estimated to come from higher revenue from economic services (such as non-ferrous mining and metallurgical industries, and major irrigation) at the revised stage (Rs 10,457 crore as compared to the budget estimate of Rs 9,780 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 |
16,771 |
21,670 |
20,851 |
-4% |
23,265 |
18% |
|
State's Own Non-Tax |
8,750 |
11,820 |
12,713 |
8% |
13,500 |
24% |
|
Share in Central Taxes |
20,593 |
25,980 |
18,220 |
-30% |
22,050 |
3% |
|
Grants-in-aid from Centre |
12,303 |
15,839 |
15,168 |
-4% |
17,891 |
21% |
|
Total Revenue Receipts |
58,417 |
75,309 |
66,952 |
-11% |
76,707 |
15% |
|
Borrowings |
9,593 |
11,000 |
13,000 |
18% |
14,500 |
23% |
|
Other receipts |
49 |
61 |
55 |
-10% |
70 |
19% |
|
Total Capital Receipts |
9,642 |
11,061 |
13,055 |
18% |
14,570 |
23% |
|
Total Receipts |
68,059 |
86,370 |
80,007 |
-7% |
91,277 |
16% |
Note: BE is Budget Estimates; RE is Revised Estimates.
Sources: Jharkhand 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 (SGST) |
8,418 |
9,450 |
9,064 |
-4% |
9,500 |
6% |
12.4% |
|
Sales Tax/ VAT |
3,996 |
5,862 |
5,268 |
-10% |
6,415 |
27% |
8.4% |
|
State Excise |
2,009 |
2,301 |
2,300 |
0% |
2,460 |
11% |
3.2% |
|
Taxes on Vehicles |
1,129 |
1,500 |
1,550 |
3% |
1,650 |
21% |
2.2% |
|
Stamps Duty and Registration Fees |
560 |
1,007 |
1,000 |
-1% |
1,200 |
46% |
1.6% |
|
Land Revenue |
338 |
1,000 |
1,000 |
0% |
1,100 |
80% |
1.4% |
|
Taxes and Duties on Electricity |
236 |
350 |
499 |
43% |
750 |
78% |
1% |
|
GST Compensation Grants |
1,533 |
1,568 |
1,568 |
- |
1,568 |
1% |
2% |
|
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, Jharkhand is estimated to receive a total of Rs 1,568 crore as GST compensation grants. The amount of GST compensation loan in 2020-21 is not available in the budget documents. The state estimates to receive Rs 1,568 crore as GST compensation grants for the year 2021-22 |
Sources: Jharkhand Budget Documents 2021-22; PRS.
- State’s own tax revenue: Total own tax revenue of Jharkhand is estimated to be Rs 23,265 crore in 2021-22, an annual increase of 18% over 2019-20. The growth rate for own tax revenue is estimated to be significantly higher than the growth rate for GSDP (an annual increase of 5% over 2019-20). Hence, the own tax to GSDP ratio is estimated to increase from 5.1% in 2019-20 to 6.4% in 2021-22.
- In 2021-22, SGST is estimated to be the largest source of its own tax revenue (41% of the state’s own tax revenue). SGST in 2021-22 is estimated to be Rs 9,500 crore (an annual increase of 6% over 2019-20). In 2021-22, Jharkhand is expected to generate Rs 6,415 crore through the collection of Sales Tax and VAT, an annual increase of 27% over the 2019-20.
Deficits, Debts and FRBM Targets for 2021-22
The Jharkhand Fiscal Responsibility and Budget Management (FRBM) Act, 2007 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 surplus of Rs 952 crore (or 0.26% of the GSDP) in 2021-22.
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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 Jharkhand to bring down its total liabilities from 37.2% of GSDP in 2020-21 to 36.8% 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 10,211 crore (2.83% of GSDP). This is lower than the 3% limit as per the Fiscal Responsibility and Budget Management (FRBM) Act. As per the revised estimates, in 2020-21, the fiscal deficit of the state is expected to be 3.22% of GSDP, which is higher than the budget estimate of 2.15%. 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, Jharkhand has not completed any of these four reforms.
Outstanding liabilities: Outstanding liabilities is the accumulation of total borrowings (including any liabilities on public accounts) at the end of a financial year. In 2021-22, the outstanding liabilities is estimated to be 27% of the GSDP, which is lower than the budget estimate for 2020-21 (32.6% of GSDP).
Table 7: Budget targets for deficits for Jharkhand in 2021-22 (% of GSDP)
|
Year |
Revenue Balance |
Fiscal Balance |
Total Liabilities |
|
2018-19 Actual |
2.1% |
-2.2% |
28.2% |
|
2019-20 Actual |
0.6% |
-2.4% |
28.7% |
|
2020-21 RE |
-0.3% |
-3.2% |
32.6%* |
|
2021-22 BE |
0.3% |
-2.8% |
27% |
|
2022-23 Target |
- |
4% |
27% |
|
2023-24 Target |
- |
3.3% |
27% |
Note: *Budget Estimates.
Sources: Jharkhand Budget Documents 2021-22; PRS.
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Figure 2: Revenue and Fiscal Balance (% of GSDP)
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: Jharkhand Budget Documents 2021-22; PRS. |
Figure 3: Outstanding Liabilities targets (% of GSDP)
Note: BE is budget estimates. Sources: Jharkhand Budget Documents 2021-22; PRS. |
Annexure 1: Comparison of states’ expenditure on key sectors
The graphs below compare Jharkhand’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 Jharkhand) as per their budget estimates of 2020-21.[1]
- Education: Jharkhand has allocated 15.9% of its total expenditure for education in 2021-22. This is similar to the average allocation (15.8%) for education by all states (2020-21 BE).
- Health: Jharkhand has allocated 5.2% of its total expenditure on health, which is marginally less than the average allocation for health by states (5.5%).
- Agriculture: The state has allocated 5.8% of its total expenditure towards agriculture and allied activities. This is lower than the average allocation for agriculture by states (6.3%).
- Rural development: Jharkhand has allocated 15.1% of its expenditure on rural development. This is significantly higher than the average allocation for rural development by states (6.1%).
- Police: Jharkhand has allocated 7% of its total expenditure on police, which is higher than the average expenditure on police by states (4.3%).
- Roads and bridges: Jharkhand has allocated 4.7% of its total expenditure on roads and bridges, which is higher than the average allocation by states (4.3%).
 |
 |
 |
 |
 |
 |
Note: 2019-20, 2020-21 (BE), 2020-21 (RE), and 2021-22 (BE) figures are for Jharkhand.
Sources: Jharkhand Budget in Brief 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, Jharkhand will have a 1.36% 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, Jharkhand will receive Rs 1.36.
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 |
2020-21 |
|
|
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 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)
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. |
|||||||||||||||||||||
|
Grants recommended for Jharkhand include: (i) Rs 12,322 crore as grants for local bodies, (ii) Rs 3,138 crore as disaster management grants, and (iii) Rs 1,300 crore as state-specific grants. The state-specific grants are for purposes including: (i) development of energy infrastructure (such as strengthening urban and rural electricity distribution, and solar pumps), and (ii) development of tourism, sports, arts, and culture infrastructures (such as tribal museum at Ranchi and Dumka, outdoor stadium at Mandar, and big stadium at Kanke). |
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Table 10: Taxes devolved to states as per Union Budget 2021-22
|
State |
2019-20 |
2020-21 |
2021-22 |
|
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) |
80,007 |
91,277 |
14% |
|
Receipts except Borrowings |
67,007 |
76,777 |
15% |
|
1. Revenue Receipts (a+b+c+d) |
66,952 |
76,707 |
15% |
|
a. Own Tax Revenue |
20,851 |
23,265 |
12% |
|
b. Own Non-Tax Revenue |
12,713 |
13,500 |
6% |
|
c. Share in central taxes |
18,220 |
22,050 |
21% |
|
d. Grants-in-aid from the Centre |
15,168 |
17,891 |
18% |
|
Of which GST compensation |
1,568 |
1,568 |
0% |
|
2. Capital Receipts |
13,055 |
14,570 |
12% |
|
a. Borrowings |
13,000 |
14,500 |
12% |
|
Expenditure (3+4) |
80,007 |
91,277 |
14% |
|
3. Revenue Expenditure |
67,821 |
75,755 |
12% |
|
4. Capital Expenditure |
12,186 |
15,522 |
27% |
|
i. Capital Outlay |
8,069 |
9,661 |
20% |
|
ii. Debt Repayment |
2,757 |
4,289 |
56% |
|
Revenue Balance |
-869 |
952 |
-210% |
|
Revenue Balance (as % of GSDP) |
-0.27% |
0.26% |
|
|
Fiscal Deficit |
10,243 |
10,211 |
-0.3% |
|
Fiscal Deficit (as % of GSDP) |
3.22% |
2.83% |
|
Note: Negative revenue balance indicates revenue deficit.
Sources: Jharkhand 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 |
9,064 |
9,500 |
4.8% |
|
Sales Tax/VAT |
5,268 |
6,415 |
21.8% |
|
State Excise Duty |
2,300 |
2,460 |
7.0% |
|
Taxes on Vehicles |
1,550 |
1,650 |
6.5% |
|
Stamps Duty and Registration Fees |
1,000 |
1,200 |
20.0% |
|
Land Revenue |
1,000 |
1,100 |
10.0% |
|
Taxes and Duties on Electricity |
499 |
750 |
50.3% |
Sources: Jharkhand 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 |
11,681 |
13,595 |
16% |
|
Rural Development |
11,922 |
12,900 |
8% |
|
Social Welfare and Nutrition |
6,357 |
6,624 |
4% |
|
Police |
5,544 |
5,971 |
8% |
|
Agriculture and allied activities |
3,421 |
4,990 |
46% |
|
Health and Family Welfare |
4,338 |
4,445 |
2% |
|
Transport |
4,309 |
4,305 |
0% |
|
of which Roads and Bridges |
3,893 |
4,018 |
3% |
|
Water Supply and Sanitation |
1,520 |
3,387 |
123% |
|
Urban Development |
2,843 |
2,775 |
-2% |
|
Energy |
2,268 |
2,712 |
20% |
|
Welfare of SC, ST, OBC, and Minorities |
1,791 |
2,016 |
13% |
|
Irrigation and Flood Control |
1,273 |
1,658 |
30% |
|
Housing |
137 |
156 |
14% |
Sources: Jharkhand 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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