Chandigarh, March 10
The Budget estimates for 2003-04, presented by Haryana Finance Minister Sampat Singh in the State Assembly here today, projected a deficit of Rs 671 crore at the close of the year.
Reading out the Budget proposals, the Finance Minister said the year would open with a deficit of Rs 781 crore and if the deficit could be confined to the projected figure of Rs 671 crore, it would indicate a surplus of Rs 110 crore during the year. This would reaffirm Haryana’s image as a state where the financial affairs were managed well, Mr Sampat Singh said.
According to the Budget estimates, the Consolidated Fund of the state would have total receipts of Rs 15380 crore against an expenditure of Rs 15846 crore. The shortfall in the receipts would be managed by the separate public account funds, the Finance Minister said.
The overall deficit in the Budget was within manageable limits. The government would try to contain the deficit by an increase in the state’s share of central taxes and other devolution which was expected as a result of the inherent resilience in the national economy. The state government would also try to collect more revenue by strict, impartial and effective implementation of tax laws rather than levying new taxes or raising the rates of taxes. Therefore, no new tax measures were proposed in the budget, the Finance Minister said.
The state’s share in central taxes has been projected to grow at 10 per cent in the budget. The collection from state taxes is expected to grow at 12.6 per cent. The non-tax revenue has been projected on a trend basis. All possible efforts would be made to contain non-plan expenditure, the Finance Minister said and added that a provision for Rs 90.33 crore had been made in the estimates on account of two DA instalments due in 2003.
The revenue receipts in 2003-04 have been projected to increase to Rs 9810.62 crore from Rs 8781.91 in 2002-03. The revenue expenditure in 2003-04 is estimated at Rs 10730.90 crore which will be higher than last year’s
Rs 9868.34 crore. Mr Sampat Singh said the increase in expenditure was attributable mainly to salaries, including pension (Rs 279.65 crore), interest payments (Rs 252.18 crore) and financial support to the power sector (Rs 145.85 crore).
In order to restore fiscal balance, organisational structure and staffing pattern of government departments and public sector undertakings were being rationalised. The surplus staff under review would not be retrenched but deputed in other departments where more employees was needed.
The Finance Minister said the government had created and filled 29898 posts in some essential departments and public enterprises during the past three and a half years. The government also proposed to fill about 20,000 posts in a phased manner.
The Finance Minister announced the constitution of a Consolidated Sinking Fund on the basis of RBI guidelines. Contributions to the fund would be made through the state budget. The government had also constituted a Guarantee Redemption Fund (GRF) for meeting the payment obligations of state guarantees. Accruals from guarantee fee would go to strengthen the CRFcorpus. Both funds would become operational from the current year, Mr Sampat Singh said.
The Finance Minister said an outlay of Rs 2100 crore had been proposed for the Annual Plan 2003-04, 16.7 per cent higher than the revised outlay of Rs 1800 crore for 2002-03. Development of the economic and social infrastructure was given highest priority.
According to the Finance Minister, the power sector would get budgetary support of Rs 1217 crore (plan and non-plan). Similarly, irrigation has been allocated Rs 767.25 crore, the transport sector Rs 532.71 crore while Rs 569 crore has been earmarked for strengthening the road network. A total outlay of Rs 1881 crore has been made for expansion of education, including technical education. The health sector will receive Rs 409.47 crore.
Mr Sampat Singh proposed Rs 567.47 crore for the Public Health Department primarily for augmenting drinking water facilities in villages. Under the Swajaldhara programme, potable drinking water would be provided in all rural areas of Haryana.
He proposed Rs 543 crore for social security
measures (old-age pension etc) and Rs 576.61 crore for the agricultural sector.
