E-Paper
Haryana budget 2022-23: Khattar pushes for more earnings to create assets
Presenting his third successive budget, Haryana chief minister (CM) Manohar Lal Khattar, who holds the charge of finance portfolio, looked contended at achieving a downward trend in revenue deficit. Revenue deficit in upcoming FY to dip to 0.98% from 1.40% in 2021-22
Eyeing a massive 15% jump in revenue earnings (about ₹13,829 crore) in the coming financial year, Haryana chief minister (CM) Manohar Lal Khattar on Tuesday promised to channelise the state’s financial resources towards creation of assets by increasing the proportion of capital expenditure from 25% to 34.4% in the budget estimates for 2022-23.
Presenting his third successive budget, the CM, who holds the charge of finance portfolio, looked contended at achieving a downward trend in revenue deficit. Revenue deficit refers to the government’s financial position where the revenue expenditure is in excess of revenue receipts.
“For the current year, the revenue deficit remains at 1.40% as per 2021-22 revised estimates and has been projected to further decrease to 0.98% of the gross state domestic product (GSDP) in 2022-23 budget estimates,” the CM said in his 150-minute-long address to the House.
Khattar attributed the downward trend in revenue deficit to his prudent robust fiscal management as well as to an improved system of accounting for the expenditure on capital assets. The CM said that the share of capital expenditure in total expenditure has been increasing while the share of revenue expenditure has posted a declining trend over the years. However, with the state government not too keen to increase its borrowings, probably due to the fear of criticism and in absence of an economic stimulus, building capital assets and increasing spendings will remain a challenge for Khattar’s team.
Additional chief secretary, finance, TVSN Prasad during a briefing said that a provision of reserve fund of ₹1,000 crore has been made in 2022-23 estimates for infrastructure projects on revenue side as per comptroller and auditor general’s classification. “However, this amount is to be utilised for creation of capital infrastructure. Thus, the revenue deficit would potentially further reduce to 0.88% of GSDP,” he said.
The finance secretary said that they have improved the system of accounting for expenditure on capital assets with funds allocated through the government’s budget, particularly those created by local bodies and autonomous institutions like universities. “This will facilitate maintenance of subsidiary asset registers and provision of funds on a continued basis for maintenance of these assets. This will also ensure improved financial discipline in the local bodies and autonomous institutions,” he said.
As per the 2022-23 estimates, the revenue expenditure is estimated at about ₹1,16,198 crore, higher by ₹11,079 crore over the 2021-22 revised estimates of ₹1,05,118 crore. The revenue deficit is estimated at ₹9,773 crore.
How revenue receipts increased?
An increase of ₹1,403 crore in the form of state’s share in central taxes helped the state government push up its revenue receipts. Among the state taxes, goods and services tax (GST) showed an increase of ₹10,380 crore and revenue stream from stamps and registration fees also increased by ₹3,100 crore primarily due to more transaction of immovable property. The state excise receipts showed a decrease of ₹490 crore probably due to lower collections and a ₹5 crore decrease was registered due to less entertainment and luxury tax.
Why did revenue expenditure go down?
As compared to the 2021-22 budget estimates, the revised estimates indicated a decrease of ₹11,026 crore in revenue expenditure. The main reasons for the decrease in revenue expenditure were shifting of grant-in-aid and financial assistances given to universities from revenue to capital head, non-utilisation of funds and non-filling up of vacancies. Documents showed that a ₹657 crore decrease in expenditure was witnessed as grant-in-aid to Haryana Agricultural University has been transferred from revenue to capital major head (loans to agricultural financial institutions). Similarly, there was a ₹438 crore decrease in revenue expenditure as two schemes of financial assistance to the Lala Lajpat Rai University of Veterinary and Animal Science, Hisar, were transferred to the capital side. A ₹765 crore decrease in expenditure was due to vacant posts and non-utilisation of funds by Haryana pond and waste water management authority etc.
A ₹1316 crore decrease in expenditure was witnessed due to less receipts and recoveries from grain supply scheme and ₹2,506 crore decrease in expenses was due to non-filling up of vacant posts and non-finalisation of development work under rural development programmes. A decrease of ₹1,986 crore under general education head was witnessed due to vacant posts and ₹787 crore due to less demand received under Mukhya Mantri Parivar Samridhi Yojana (MMPSY) scheme.
