E-Paper
Haryana budget 2023-24: Making up revenue loss a challenge for Khattar in next fiscal
Generating resources for the populist measures will be a major challenge for Manohar Lal Khattar led BJP-JJP government. Revenue deficit means that the government’s revenue expenditure is in excess of its revenue or tax receipts.
With the revenue earnings taking a nosedive in the 2022-23 financial year, registering a shortfall of about ₹9,422 crore and skyrocketing the revenue deficit – from a modest estimate of ₹9.773 crore to ₹18,005 crores - the Manohar Lal Khattar led BJP-JJP government has its work cut out. Generating resources for the populist measures will be a major challenge. Revenue deficit means that the government’s revenue expenditure is in excess of its revenue or tax receipts.
When asked about the reason for 84% spiral in the revenue deficit, the chief minister said the income of the state government had suffered a setback in the last two years due to the pandemic. “Major shortfall in receipts is due to the discontinuation of the Goods and Services Tax compensation as the five-year period for its grant of ended in June 2022. We will make up this loss by pushing for an increase in our own tax receipts,” said additional chief secretary, finance, Anurag Rastogi during a briefing.
Khattar on Thursday proposed a ₹1,83,950-crore state budget for 2023-24, an increase of 11.6% over the revised estimates of ₹1,64,808 crore. The budget proposes an expenditure of ₹57,879 crore on capital asset creation, representing 31%, and ₹1,26,071 crore on revenue expenditure, representing 68%.
Govt expects revenue earnings to increase in 2023-24
As per the 2023-24 budget estimates presented by CM Khattar, the revenue earning in 2023-24 are likely to increase to ₹10,9122 crore as against ₹97,002 crore in 2022-23 revised estimates registering a hike of ₹12,119 crore. However, the revenue expenditure in 2023-24 budget has been estimated at ₹1,26,071 crore which would be higher by ₹11,063.91 crore over the 2023-24 revised estimates of ₹1,15,007 crore. “The revenue deficit for 2023-24 budget, is estimated at ₹16,949 crore,” he said. The CM said while projecting receipts and expenditure for 2023-24 fiscal, the recommendations of the 15th Finance Commission have been followed. The stateʼs share in central taxes has been assumed at ₹11,164 crore as per recommendations of the commission. Revenue expenditure has been projected to be contained to the bare minimum level, he maintained.
Liabilities to be in excess of assets
The total liabilities of the state, as on March 31, 2024, is projected at ₹3,30,946 crore (including deposits and advances) with an addition of ₹31,053 crore. The total assets of the state as on March 31, 2024 are likely to be quantified at ₹1,70,081 crore indicating a net addition of ₹14,104 crore. Thus, the liabilities of the state, as on March 31, 2024, are likely to be in excess of the assets by ₹1,60,864 crore, budget statistics showed.
Rural electrification subsidy
Since the state-owned power distribution companies have not increased the nominal electricity tariff for the farm sectors for the decades, the state government has to every year shell out a hefty rural electrification subsidy bill. The committed budgetary support to power utilities is being given in the form of equity and rural electrification (RE) subsidy. Total budgetary support of ₹7,737 crore has been provided to power sector in 2023-24 estimates including a provision of ₹7,149 crore for the RE subsidy, the budget estimate said.
Debt liability to be 25.45 % of GSDP in 2023-24 fiscal
As per 2023-24 estimates, the revenue deficit is estimated to be at ₹16,949 crore which constitutes 1.51% of gross state domestic product (GSDP). The fiscal deficit is estimated to be at ₹33,274 crore which constitutes 2.96 % cent of GSDP and well under the 3% limit as per FRBM Act.
“The state debt liability is likely to go up to ₹2,85,885 crore as on March 31, 2024 from ₹2,56,265 crore as on March 31, 2023, constituting 25.45 % of the GSDP. Interest payment liability has been estimated at ₹21,249 crore during 2023-24, which accounts for 19.47% of total revenue receipts (TRR).The expenditure on salary and pension as a ratio to TRR is likely to be 26.21 % and 10.91% respectively in 2023-24 estimates.
