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Himachal CM presents ₹51,365 crore tax-free budget
Jai Ram Thakur hikes monthly old-age pension from ₹1,001 to ₹1,500, lowers age limit for such pension from 70 to 60 years
With an eye on the state assembly elections slated for the year-end, Himachal Pradesh chief minister (CM) Jai Ram Thakur, who also holds the finance portfolio, presented a ₹51,365 crore populist, tax-free budget on Friday.
There is a nominal increase of 2.3% ( ₹1,173 crore) in the budget as compared to the previous year’s budget of ₹50,192 crore.
With the total revenue receipts estimated to be ₹36, 375 crore and total expenditure to be ₹40,278 crore, the total revenue deficit is pegged at ₹3,903 crore for the financial year 2022-23. The fiscal deficit is likely to be ₹9,602 crore, which is 4.98% of the state’s GDP.
As per the revised estimates for 2020-21, the total revenue surplus for the Financial Year 2021-22 was ₹278 crore.
Presenting the fifth and last budget of the Bharatiya Janata Party’s current tenure, Thakur said: “The guiding principle of this budget is ‘Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas’.”
He added that the 2022-23 budget is a reflection of people’s aspirations as well as the resolve of the government to continue the pace of development despite the economic ill-effects brought about by the pandemic.
“Last four years have been challenging for government, however, defying all odds, we have been successful in fulfilling the aspiration of the people and ensuring balanced and equitable development,” he said.
The CM further said that the budget this year will focus on expansion of social security net, strengthening and expansion of health services, employment creation, increasing farmers’ income and improving the quality of education.
Social security
The CM said that social security was the priority of his government. “Our government has increased both the coverage and outlay of social security pension schemes being implemented in the state,” he said.
The total number of beneficiaries under these schemes will exceed 7.50 lakh, with a spending of approximately ₹1, 300 crore in 2022-23 as compared to an outlay of ₹450 crore in 2017-18, a threefold increase under the current regime. The various social security pensions have been hiked by ₹150- ₹500. The age-limit for old age pension has been lowered to 60 years irrespective of income criteria and 40,000 more people will be added to the social security network.
Economic growth pegged at 8.3%
Heaping praises on the Centre for its support and liberal grants to the state, Jai Ram said that according to the estimates, Himachal’s economy will register a growth of 8.3%. “This is a great achievement of our government despite the challenges posed by Covid-19 pandemic.
He added that the per capita income of the state will likely be ₹ 2, 01, 854, an increase of ₹18,568 from the previous year’s ₹1, 83, 286, and ₹56,318 higher than the national per capita income.
MLALAD, discretionary grant hiked
The MLA-Local Area Development Fund has been enhanced to ₹2 crore from the existing ₹1.80 crore. The discretionary grant of MLAs will be increased to ₹12 lakh from ₹10 lakh. “This was ₹5 lakh when my government took office,” said Jai Ram.
₹12,901 crore outlay for development activities
Announcing an outlay of ₹12, 921 crore for development activities, the chief minister said that out of the total, ₹9,524 crore is proposed for the state development budget, ₹2,400 crore for scheduled caste development programme, and ₹856 crore for tribal area development programme.
The outlay for backward area development programme is ₹152 crore. The limit of MLA priority schemes funded by NABARD will be increased to ₹150 crore per legislative assembly, nearly double the limit in 2017-18, said the CM.
₹583 crore for agriculture
The CM said that the agriculture sector provided great stability to the state’s economy during Covid outbreak and the sector is expected to grow at 8.7% in 2021-22. “A total outlay of ₹583 crore has been proposed for agriculture,” said Thakur.
He said that under the Prakritik Kheti Khushhal Kisan (PK3Y) scheme, 50,000 acres will be brought under natural farming in 2022-23. Hundred villages will be developed as natural farming villages and 50,000 farmers will be certified as natural farmers. Agriculture and horticulture universities will include natural farming in their curricula.
At present, the CM said, Himachal doesn’t have dedicated grain markets and difficulties were experienced in selling food grains produced in other states. In the coming rabi season, grain procurement will be done at 11 places, four new grain mandis will be developed at a cost of ₹15 crore at Una, Bilaspur and Kangra. Thirteen market yards will be developed and upgraded under JICA-aided project Phase-II at a cost of ₹31 crore. To promote local varieties of wheat and maize seeds, the CM announced ₹5 crore and ₹10 crore respectively.
Horticulture gets ₹540 crore
An outlay of ₹540 crore has been provided for horticulture.
A new horticulture policy is on cards to increase production. Also, ₹11 crore will be spent under Pushp Kranti Yojna to promote floriculture, orchids and ornamental plants.
Special plantation drive will be started for bee-flora by spending ₹4.5 crore and Indian varieties of bees will be encouraged. The government will also spend ₹3 crore to promote the cultivation of Shitaake and Dhingri mushrooms and their processing and canning.
Clusters will be set up for cultivation of Jamun and dry fruits. High-density plantations and immunity booster crops will be promoted. A total of ₹58 crore will be spent on the construction of cold-atmospheric stores at Chachyot, Reckong Peo, Gyabong and Chamba. The apple-growing Kotgarh-Thanadhar in Shimla district will be developed as Satyanand Stokes Trail with a comprehensive plan through convergence with the coordination of horticulture, tourism and language and culture departments.
A fruit processing unit, coming up at Parala at a cost of ₹91 crore, will start production in 2022-23 and the fruit processing units located at Parwanoo and Jarol will be upgraded at a cost of ₹17 crore.
Quality education
The expansion made in the education facilities in the state has been lauded at national and international levels, said the chief minister.
He said that under the National Education Policy-2020, pre-primary classes are being started for children in the age group of 3 to 6 in government primary schools in a phased manner
Real-time teaching will be started in a hybrid mode in all government elementary, high and senior secondary schools, benefiting about 6 lakh students.
A new scheme, “Shreshth Shiksha Gunvatta Protsahan Yojana”, encourages and ranks government schools on the basis of evaluation of learning outcomes. The top three schools of the state and top three schools of each district will be granted cash awards. The amount of various scholarship schemes has been increased. Career counseling and guidance cells will be set up in government schools and colleges.
The ‘Sardar Patel University in Mandi’ will start functioning from April 2022. In all, the budget outlay for education is ₹8,412 crore.
Health budget cut by 8.7%
The government has allocated ₹2,752 crore for health services— 8.7% less than the previous year’s ₹3,016 crore. Among the major plans for the health sector are a new ‘CM mobile clinic’ scheme to introduce health services at the doorsteps of the rural populace and in the interior areas. A mobile clinic will be started in each legislative assembly constituency with the necessary instruments and equipment for providing basic health services.
PET scan and brachtherapy will be started at Dr Rajendra Prasad Government Medical College, Tanda, and PET scan and MRI facilities at Nerchowk Medical College by spending ₹61 crore.
A comprehensive lactation management centre will be set up at Nerchowk Medical College, where donors’ milk will be collected, tested, preserved and made available to newborn children under treatment. A ‘model primary health centre’ will be developed in each health block. Fifty new ambulances will be added to the National Ambulance Service-108. A specialised cadre of medical officers will be created to provide better health services in different areas of the state. Validity of ‘HIMCARE’ card will be hiked to 3 years and registration will be done around the year.
“Union government has provided liberal financial assistance to the state government for expansion and strengthening of health services in the state,” said the chief minister. He said the total assistance would be ₹1,300 crore by the end of 2022-23— ₹419 crore received in 2021-22 and ₹848 crore budgeted in 2022-23.
Employment generation
The chief minister said that his government plans to generate employment for 30,000 youths. “Employment will be generated in both private and government sector,” said Jai Ram while adding that in the present fiscal, nine job fairs and 120 campus interviews are to be held. He said that the digitisation of registration in all employment offices will be completed.
The CM’s Budget speech highlighted the Mukhyamantri Swavalamban Yojana. He said that it has emerged as a popular scheme for employment generation. Under this scheme, over 50,000 cases have been approved by the banks with an investment of ₹457 crore. About 8,000 youths got jobs in 2,800 enterprises. He announced to increase subsidy for all women and 30% to schedule caste, scheduled tribe and Divyangjan beneficiaries, under the scheme. The budget does not speak much on industrial development.
Women welfare and empowerment
The CM said his government was committed to women empowerment and presented a separate gender budget statement in the House. He announced a new “Mukhya Mantri Bal Suposhan Yojana to remove child malnutrition that comprised of seven pillars. Under the scheme, children with pneumonia in the growing stages will be identified. Underweight infants will be monitored regularly. Children will be given nutrition-rich food, and steps would be taken for early identification and treatment of hypertension and anaemia in expecting women.
