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Jai Ram presents appease-all, tax-free budget in Himachal
₹ 49,000-CRORE BUDGET With 25 new schemes, the budget estimate is around 11% higher than the 2019-20 budget of ₹ 44,387 crore; in his third budget, 17% has gone to education that has been allocated ₹8,352 crore
Shimla In a populist, appease-all budget for 2020-21 that has no new taxes for the 11th year in a row, chief minister Jai Ram Thakur, who also holds the finance portfolio, presented a ₹49,131-crore budget in the assembly on Friday. With 25 new schemes, the budget estimate is around 11% higher than the 2019-20 budget of ₹ 44,387 crore.
A sixth of the budget or around 17% has gone to education that has been allocated ₹8,352 crore. Another one-sixth, however, is also going to interest payment and debt servicing (see accompanying boxes) that also take away ₹8,353 crore of the budget.
“The guiding principle of the budget is ‘Sabka Saath, Sabka Vikas, Sabka Vishwas’ which will be the spirit in the coming years also,” said the chief minister, who presented his third budget, adding, “The focus will be on good governance and effective grievance redressal as the state celebrates 2020 as Golden Jubilee Year. Priority has been given to agriculture, horticulture and allied sectors to supplement rural incomes.”
Total revenue receipts are estimated to be ₹38,439 crore, with the total revenue expenditure at ₹39,123 crore, peging the resultant revenue deficit at ₹684 crore. The fiscal deficit is estimated to be ₹7,272 crore, which is 4% of the Gross State Domestic Product (GSDP).
Estimates suggest 11% increase in revenue receipts from the state’s own sources in 2020-21, over 2019-20. “I believe that effective tax administration, continued support of the Government of India, international funding and prudent fiscal management will help us fund the ongoing and new schemes,” the CM added.
PER CAPITA INCOME AT ₹1.95 LAKH ABOVE NATIONAL FIGURE
For 2019-20, the state is expected to grow at 5.6%, which is more than the estimated growth for the national economy. The state gross domestic product (SGDP) is expected to be ₹1.65 lakh crore, around ₹11,600 more than the previous year’s SGDP. The per capita income of Himachal Pradesh is estimated at ₹1.95 lakh, ₹60,000-odd higher than the national figure. The CM added that the state has been ranked second after Kerala in the achievement of Sustainable Development Goals in ‘SDGs India Report 2019-20’ by the NITI Aayog.
An outlay of ₹7,900 crore has been proposed for the Annual Plan 2020-21, which is about 11% or ₹800 more than the allocation for ₹7,100 crore. Of the proposed outlay, ₹1,990 crore is proposed for the Scheduled Caste Sub Component Plan; ₹711 crore for Tribal Sub Plan etc.
Additional resources will be required to meet the increased Annual Plan outlay; these will be mobilised through the assistance available under centrally-sponsored schemes and externally-aided projects, the CM said. For developing human resources in hospitality industry, an Institute of Hotel Management in Dharamshala and Food Craft Institute in Sundernagar will be set up.
GOING DIGITAL
“During the last two years, there has been a growth in structural development and in the work culture of the state,” Thakur claimed, announcing an increase in the government to citizen services from 52 to 62 under the e-Drishti portal. He said the state was moving ahead on implementing e-services and cabinet meetings will also be made paperless. The chief minister announced for a special all-party committee for the allotment of land to farmers.
GOLDEN JUBILEE YEAR
Thakur said 2020 will be celebrated as the golden jubilee year. He said all ministers in the state have given up subsidy on LPG cylinders and under the public distribution system.
INCENTIVE FOR TOBACCO-FREE PANCHAYATS
He announced ₹5 lakh cash prize for tobacco-free panchayats and ₹100 crore for a free medicine scheme. Another ₹100 crore is proposed for the Dharamshala and Shimla Smart City Projects. Cash prizes of ₹50 lakh, ₹30 lakh and ₹25 lakh were announced for the top three districts in the good governance index.
SIDELIGHTS
Touch-screens checked, ready to go
Chief minister Jai Ram Thakur arrived in the House at 10.30am. He, along with officers of the Vidhan Sabha, the finance department and the public relations department, inspected his desk and the touch-screen display fitted on the desk. Former Speaker Rajiv Bindal also inspected the desk.
The early-birds
Public works department minister Mahender Singh Thakur and leader of opposition Mukesh Agnihotri were the first ones to arrive at the assembly
Quoting from Vajpayee
During his 2 hour, 45 minute speech, chief minister Jai Ram Thakur read couplets and recited stanzas from poems of late Prime Minister Atal Bihari Vajpayee
Better half in attendance
The chief minister’s wife Sadhna Thakur and former speaker Gangu Ram Musafir were among the guests. They sat in the Speaker’s Gallery
Former CM, son skip session
Former CM Virbhadra Singh, who is the legislator from Arki, and his son Vikramaditya Singh, MLA from Shimla Rural, were not present in the Vidhan Sabha
