Presenting his second budget, Yadav said that the state economy has started showing signs of resurgence after witnessing stress during 2008-09 and 2009-10.
The Gross State Domestic Product (GSDP) has grown by 9.9% in real terms in 2009-10; and the per capita income is likely to grow by 16.3% to R78,781 at current prices; and by 8.2% at constant prices. The advanced estimates show that the GSDP at constant prices for the 2010-11 is likely to grow at 9.0% and per capita income at 7.2%. The fiscal health of the state is sound and the state government is committed to improving tax administration, maximizing development expenditure and maintaining sustainability of public debt, said Yadav. Adding, As a result of better enforcement, focused tax collection efficiency, continuous review and monitoring, tax revenue as percentage to GSDP which was 6.11% in 2009-10 is expected to increase to 6.73% in 2010-11.
The budget focuses on social sector, with 49.1% of the total annual plan to be spent on this sector. As much as 33% would be spent on infrastructure in the state. Giving out sectoral allocations, Yadav said that agriculture and allied activities have been allocated R1,529.18 crore; power R4,962.06 crore; transport R1,357.02 crore; irrigation R1,748.48 crore; public health engineering R1,900.31 crore; urban development R1695.01 crore; education, including IT and technical education R7,401 crore; health R 1,443.61 crore; social justice and empowerment, including SCs and BCs R2,806.87 crore; and rural development and panchayats R1,104.86 crore.
Yadav said that the state was a revenue deficit state up to 2004-05 but after the Hooda government, it became revenue surplus, and remained so up to 2007-08. But the slow-down and impact of pay/pension revision turned the state revenue-deficit. The BE for 2011-12 project a revenue deficit of R2,660.68 crore and fiscal deficit of R8,008.60 crore. The balance from current revenue for 2011-12 is projected at R4,052.69 crore. The fiscal deficit is estimated at 2.61% of GSDP in 2011-12, well within the prescribed limit of 3%. He said that the deficit would be made up by discouraging unproductive expenditure, adopting austerity measures during the year.
Receipts from various tax collections were estimated to be R20,006 crore in FY 12, including R14,100 from VAT; R2,400 crore from excise; R2,350 crore from stamp duty; R 515 crore from vehicle taxes and R425 crore from goods and passenger taxes. Besides, a sum of R2,765 crore was also expected to be received from the Centre as state's share in the central taxes. In percentage term, 20% more revenue is expected during the next fiscal as compared to this year, he added. He projected Haryana to be a surplus state by 2012-13.
Education, power, infrastructure, health, social justice and empowerment and welfare of SC and backward classes has received special focus in the budget. Yadav said that concrete initiatives have been taken to add additional power generating capacity of 5,000 mw. As many as 913 habitations would be provided facility of piped drinking water, besides augmenting the water supply in 913 villages in 2011-12. The old age allowance has also been increased to R 550 per month for those beneficiaries who have been registered after March 1,1999 and on or before April 1, 2010, besides the honorarium of Aganwadi workers and helpers has also been increased.
Annual Plan Size for 2011-12 is R20,358.14 crore including PSEs and Local Bodies resources of R6,108.14 crore and R1050 crore respectively. The State Annual Plan which is financed through State Budget is pegged at R13,200 crore (with R 2,136.83 crore for centrally sponsored schemes) for 2011-12 which is 18.92% higher than the previous year. The total actual plan expenditure during the period 2000-05 was R9,235 crore while the actual plan expenditure during the period 2005-10 is R29,713 crore which constitutes 221.74% growth. Not only the state plan spending in absolute terms is going up but its ratio to GSDP has also gone up. The ratio of plan expenditure to GSDP for 2010-11 is likely to be 4.31% against 2.25% in 2004-05.