Haryana today refrained from imposing any new taxes in Budget 2016-17 and proposed an amnesty scheme for traders affected by Jat quota stir, while announcing taxation relief for several products and hiking allocations to key sectors to boost infrastructure and jobs.
While presenting his second Budget, Finance Minister Abhimanyu swore by "Sabka Saath Sabka Vikas" to ensure a balanced, equitable and accelerated growth of all sections of state, irrespective of caste, creed or community and geographical locations.
The state, which is also celebrating the Golden Jubilee Year of its formation in 1966, saw a budgetary increase of 28.4 per cent to Rs 88,781.96 crore for 2016-17 over a year ago.
The Finance Minister has also proposed to cut tax on footwears, with MRP of above Rs 500, from 12.5 per cent to 5 per cent and exempt shoe uppers from VAT.
In order to encourage agro-based industries, tax exemption has been proposed on 'Khal', 'Binola', 'Besan' and cotton yarn manufactured in the state.
Tax on Vermicelli (Sewian) has also been lowered from 12.5 per cent to 5 per cent to give incentive to industries, which use farm produce of the state for manufacturing.
With a view to promoting clean environment, Abhimanyu has proposed to reduce tax from 12.5 per cent to 5 per cent on the sale of electrical vehicles.
In order to provide relief to the households and to encourage Micro and Small Enterprises, it is proposed to exempt "Chhota Toka" (leafy vegetable cutter for kitchens) from payment of tax.
Caring for the victims of the recent reservation agitation, the Finance Minister has introduced an amnesty scheme, granting relief in respect of tax, interest, penalty and other dues to the affected registered dealers whose goods were lost or destroyed.
In order to encourage the customers to obtain bills, invoices for goods purchased, the government proposes to introduce "Submit Bill, Get Prize Scheme". This will enhance compliance on the part of sellers, dealers and bring more revenue to the state exchequer, he said.
Riding the crest of better revenue realisations, Abhimanyu has chosen to tread the path of fiscal prudence. In Budget Estimates 2015-16, fiscal deficit was estimated at 3.1 per cent of GSDP and 2.58 per cent (without UDAY) in Revised Estimates 2015-16.
With initiatives taken for fiscal consolidation, fiscal deficit has been pegged at 2.47 per cent of GSDP (without UDAY) in 2016-17.
"This is well within the stipulated limit of 3 per cent of GSDP by the 14th Finance Commission," he said.
There has been a jump in state's own taxes as a percentage of the GSDP from 6.3 per cent in 2014-15 to 6.9 per cent in 2015-16.
"More impressive is the fact that this ratio has been
showing a declining trend from 2011-12 onwards for four years before this turnaround in 2015-16. In 2016-17, I expect this ratio to be around the same level," Abhimanyu said.
Under Revised Estimates 2015-16, the total revenue receipts (TRR) are expected to be Rs 54,167.35 crore comprising a tax revenue of Rs 40,436.10 crore and non-tax revenue of Rs 13,731.25 crore. TRR as ratio of GSDP is estimated at 10.7 per cent in 2015-16 RE, against 9.2 per cent in 2014-15.
In Budget Estimates 2016-17, TRR is projected at Rs 62,955.53 crore, of which tax revenue is Rs 46,388.31 crore and non-tax revenue is Rs 16,567.22 crore. TRR as ratio of GSDP is projected at 10.7 per cent in 2016-17.
He said that though no fresh taxes have been proposed, allocations for most key sectors have been increased.
The state government has allocated Rs 13,494 crore for agriculture and allied sectors (including irrigation, cooperation and rural electrification subsidy); Rs 2,824.47 crore for rural development and panchayats; Rs 14,305.34 crore for education sector (comprising elementary, secondary, higher, technical education, industrial training, sports, art and culture).
Besides, Rs 3,916.94 crore has been earmarked for health and family welfare; followed by Rs 828.80 crore for development of industries and minerals; Rs 6,189.87 crore for social welfare, nutrition, and welfare of scheduled castes (SCs) and backward castes (BCs); Rs 16,826.70 crore for power sector; Rs 3,108.37 crore for Public Health Engineering Department; Rs 3,645.86 crore for urban development and Rs 400 crore for district plan.
For transport sector, an allocation of Rs 2,464 crore has been made while Rs 4,485.11 crore has been proposed for building and roads sector.
Abhimanyu said the state government has earmarked a plan outlay of Rs 6,373.48 crore, 20.3 per cent of the total plan outlay, for the welfare of Schedule Castes under SCSP component in 2016-17.
Total budgetary estimates (BE) of Rs 69,140 crore for 2015-16 are proposed to be increased by 28.4 per cent over last year to Rs 88,781.96 crore in 2016-17. It comprises plan expenditure of Rs 40,256.21 crore (45.3 per cent) and non-plan expenditure of Rs 48,525.75 crore (54.7 per cent).
The overall estimates have been placed in two categories, with UDAY and without UDAY, in line with the practice followed by several other states for simpler understandings and comparative analysis. MORE.
"If I were to compare the figures of BE 2016-17 with
that of 2015-16 after discounting the financial takeover of 75 per cent of the accumulated debt of the power distribution utilities, the growth in the budgetary estimates of Rs 78,185.96 crore in 2016-17 would be 15.4 per cent over that of RE 2015-16 of Rs 67,737.30 crore," Abhimanyu said.
In addition, the government proposed an off-budget outlay of Rs 10,141.78 crore by the state public sector enterprises, and Rs 1,048.84 crore by the local bodies. An amount of Rs 1,253.84 crore of budgetary resources of the Department of Town and Country Planning will be spent in FY 2016-17 on developmental activities.
A sum of Rs 48,525.75 crore has been proposed as Non-Plan expenditure for FY 2016-17, including provision for UDAY, which exhibits a growth of 14.7 per cent over the RE of Rs 42,294.28 crore for 2015-16. Without UDAY, it is Rs 46,579.75 crore indicating a growth of 10.1 per cent over RE 2015-16 of Rs 42,294.28 crore.
Capital expenditure has shown an increasing trend from Rs 4,558.40 crore in 2014-15 to Rs 6,769.30 crore in RE 2015-16, representing an increase of 48.5 per cent. Besides, in 2015-16, capital expenditure of Rs 5,006.54 crore is being incurred on the creation of infrastructure by the five major public sector undertakings (HUDA, HSIIDC, HSAMB, HWC and Power Utilities). Hence, a total of Rs 11,775.83 crore is being invested as capital expenditure in 2015-16.
The Budget proposes to increase capital investment to Rs 8,788.58 Crore in 2016-17 without UDAY. Another amount of Rs. 6,990.38 Crore will be spent by these five PSUs in 2016-17. Together, the capital expenditure will increase to Rs 15,778.96 crore in 2016-17, indicating 33.99 per cent increase over 2015-16.
Abhimanyu outlined a series of innovative measures to ensure tight fiscal and financial management of funds and bring in higher levels of transparency and accountability in making the system more efficient and economical.
"These include, among other things, opening of Personal Ledger Accounts (PLA) instead of bank accounts by all departments, minimising non-plan expenditure by freezing the amount for contractual engagements, and setting up of a Debt and Cash Management Cell (DMC) in the Finance Department for effective monitoring and management of debt and cash flow.
He said the macroeconomic management has shown a significant improvement in the economic parameters like revenue deficit, fiscal deficit, etc. In the field of macro economy, the ranking of Haryana has improved to 1st position in 2014-15 from 12th position in 2013-14.
"The budget is directed towards the creation of more jobs in the agriculture and enterprises sectors. It is directed towards giving due importance to both these sectors to reduce the rural distress and to ensure adequate job creation in the private sector to meet with the expectations of the youth and also to reap the demographic benefit of the state," Abhimanyu said.
The proposed Debt and Cash Management Cell (DMC) in the
Finance Department will capture all outstanding loans and interest thereon, term of loans, repayment schedule etc, and facilitate tabling of/obtaining future debt in a better and transparent manner at competitive rates of interest. The cell will, inter alia, look into the investment of surplus funds to maximise revenue, he added.
He also plans to set up a state level academic institution named Swarnjayanti Fiscal Policy Institute (FPI).
It will provide specialised research opportunities in the areas of public finance and policy to policy makers, business fraternity, industry associations, academic institutions and other research and consultancy organisations along with specialised training opportunities for officers of the Haryana government as well as other states.
Another initiative involves asset mapping and land monetisation. Vast tracts of lands of PSUs/boards/ corporations, a potential source of revenue for the state, are lying unutilised or have been encroached upon, he said.
In order to utilise it in right earnest manner, it has been decided to carry out asset mapping of state's resources and prepare registry of public assets.
"The government will soon constitute a committee under persons of unimpeachable integrity to suggest effective utilisation, development or monetisation of government owned land bank to generate more revenue in the larger interest of the people of the state," Abhimanyu said.
Ahimanyu reiterated the commitment of the state government to get Haryana's legitimate share of Ravi-Beas Water after completion of the Sutlej Yamuna Link Canal.
He said that this House, as a representative of more than 2.5 crore people of the state, has unanimously resolved to ensure the earliest completion of the SYL Canal.
To mark the Golden Jubilee formation of the state, he set apart Rs 1,657.04 crore for as many as 28 Swaran Jayanti Schemes proposed to be launched during the financial year 2016-17.
The departments include agriculture, cooperation, industries, Enterprises Promotion Policy 2015, Information Technology, health, social justice, civil aviation, environment, economic & statistical analysis, tourism, pilgrimage, Ayush and welfare of SCs & BCs.
He announced that the state government planned to raise the salaries and allowances of its employees after the central government takes a call on the recommendations of the Seventh Pay Commission which has already submitted its report. A suitable provision has been made in the budgetary estimates for 2016-17, he said.
Abhimanyu said that Chief Minister Manohar Lal Khattar
had given a task to ensure direct flow of fund to the account of the beneficiary without any intermediaries under welfare schemes.
"The government has identified 73 welfare schemes where benefits can be given under Direct Benefit Transfer (DBT). A total sum of Rs 5,916 crore would be disbursed to the beneficiaries through DBT," he added.
"By September 2016, the government is expected to cover all the beneficiaries of these welfare schemes under DBT and by end of 2016, this facility would be made available on their mobiles also completing the trinity of JAM (Jandhan, Aadhar and Mobile Telephony)," he added.
He said that implementation of DBT covered various departments including Health, Welfare of Scheduled Castes & Tribes, Social Justice & Empowerment and Women & Child Development and Education.
Knowing fully well that connectivity holds the key to growth; Haryana plans to design its rail, road and air connectivity as to turn the strategic advantage of geographical location into a catalytic agent for propelling growth of the state economy.
While on one hand, the state government is planning to sign an MoU with the Ministry of Railways for formation of a joint venture company to undertake development, financing and implementation of identified railway projects, on the other hand the Chief Minister has announced plans to upgrade Hissar Civil Aerodrome to an international airport.
The network of roads crisscrossing the state is being further widened and strengthened, and new roads, including highways, are being laid, he said.
He said that formation of a JV company with Railways would facilitate the spread of railway network in the state by laying additional railways lines. It would also provide safe and economical travel and transportation of goods and give boost to the state's economy, he said.
One of the yardsticks of development of a state is its air connectivity. Haryana has five Civil Aerodromes at Karnal, Hissar, Narnaul, Bhiwani and Pinjore.
"But it is a matter of concern that even after 67 years of Independence, no functional domestic airport could be established in the mainland of the state," he said.
Keeping this in view, the Chief Minister has announced up gradation of the Hissar Civil Aerodrome to the level of International Airport. In the first phase, the government plans to expand the runway from 4,000 ft to 7,000 ft and renovate the terminal building at a cost of Rs 50 Crore, the Minister said.
An internationally renowned consultant has been engaged
for the development of Hissar Civil Aerodrome as an international airport.
Based on the consultant's report, action would be taken on the development of Hissar as an Integrated Aviation Hub comprising International Airport, International Cargo Airport, Maintenance, Repair and Overhauling (MRO) hub on PPP basis. It is also proposed to upgrade civil aerodrome in Karnal to domestic airport.
He said that as the Union Ministry of Tourism has identified Kurukshetra under Krishna Circuit to develop tourism infrastructure in the city and highlight it worldwide, the Haryana government has identified and shortlisted five prominent sites namely Sannihit Sarovar, Amin Kund, Narkatari, Brahma Sarovar, Jyotisar as well as Kurukshetra city for development.
He said that an outlay of Rs 66.81 Crore has been made in 2016-17 for tourism to undertake these projects giving an increase of 109.4 per cent over Rs 31.90 crore in the year 2015-16.
He said that a 3D multimedia show on various themes from Srimad Bhagvad Gita and Mahabharata, installation of Viraat Swaroop of Bhagwan Shri Krishna and a theme park complex replicating original 48 Kos Mahabharata war area have been included under these innovative projects.
He said that accordingly, a detailed project report (DPR) for development of Mahabharata places near Kurukshetra with outlay of Rs 99 crore has been submitted to the government of India.
Out to realise the vision to supply 24x7 power to all rural domestic consumers, improve supply in the urban sector, beef up transmission and distribution network, and pare down AT&C losses, Abhimanyu has allocated Rs 16,826.70 crore to the power sector in his Budget proposals for 2016-17 presented to the Vidhan Sabha, today. It includes Rs 10,018.73 crore on Plan side and Rs 6,807.97 Crore on Non-Plan side.
