To contain a "ballooning" revenue deficit, Haryana Finance Minister Abhimanyu today said the state government is adopting a "course correction" and is reducing non-plan expenditure.
However, the capital expenditure would be raised for asset creation, with no compromise on development agenda for boosting economic activity.
After presenting the first Budget of BJP-led government in the state, the Finance Minister said, "This fiscal was full of challenges. We have initiated towards bringing structural changes in Haryana's fiscal policy and management. We have started course correction,."
He was, however, non-committal on not levying fresh taxes during the next fiscal.
Addressing media after presenting the budget for 2015-16, Abhimanyu said that the state government intends to reduce non-plan expenditure ratio and increase capital expenditure as part of its steps to contain "ballooning" revenue deficit.
"We have started course correction, in which ratio of non-plan expenditure is being reduced with no impact on development expenditure. Ratio of plan expenditure will be hiked in terms of overall budget.
"The capital expenditure is to be increased and borrowing limit is to be kept within the fiscal limits fixed by the Centre," he said when asked about the steps the government will take to contain revenue deficit.
In a White Paper on State Finances, the state government had pointed out that nearly two thirds of total expenditure during last ten years was non-plan. Moreover, 90 per cent of total receipts were spent on revenue expenditure while just 10 per cent was spent on capital expenditure.
Asked on taking hard steps to put the state's "poor" fiscal health on track, the FM said the state government was moving towards "course correction" path.
"We are taking course correction. At the same time not compromising on growth of economy and knowing very well that we will be able to contain revenue deficit," he said. More.
