Haryana is expected to lose non-tax revenue of Rs 951 cr (approx) due to meltdown in real estate and housing sector in the financial year 2009-10. This will effect the non-tax revenue of the state that is likely to be about Rs 5,547.88 cr in the corresponding year.
The state needs to achieve a balance between the squeezing receipts and burgeoning expenditure, the major part of which comes from the implementation of the recommendations of sixth pay commission. Haryana has assessed the liability on account of payment of salary arrears as Rs 4350 cr with effect from January 2006.
This would be a deferred liability of 36 months stretched over 3 months of 2005-06, year 2006-08 and 9 months of current financial year.
This arrear is to be paid in the current and next financial year so Rs 3210 cr will be discharged during this financial year and the balance in the next year.
The real estate and housing projects have come to nearly a standstill due to lackluster demand.
In order to compensate this loss, the state has come out with the apratment act, that would help the state mobilise estimated Rs 300 cr annually.
The state expects a dip in the revenue receipts about Rs 2000 cr and fall in VAT collection to the tune of Rs 400 cr due to the slowdown in the economic activities in the state in the wake of global recession.
The cash balance of Rs 3000 cr with the reserve bank of India might help the state to restore the pace of public expenditure this financial year but the next financial year would be a challenge.
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