15th Finance Commission recommends Rs 63K crore to Haryana over next 5 years

Haryana Economy

02-Feb-21

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The 15th Finance Commission has recommended a transfer of Rs 63,098 crore to Haryana from 2021-22 to 2025-26.
This will include Rs 46,177 crore as state’s share in central taxes and duties, and Rs 16,921 crore as grants-in-aid.
Haryana’s share in central taxes has been increased to 1.093 per cent from 1.084 per cent.
In case of grants-in-aid for Haryana, the Commission, headed by NK Singh, has recommended Rs 132 crore as revenue deficit grant.
The states which still show a revenue deficit post devolution have been recommended revenue deficit grants. Post devolution, Haryana is reflecting only Rs 132 crore as revenue deficit in 2021-22, while there will be a surplus of Rs 6,444 crore in 2022-23, Rs 14,312 crore in 2023-24, Rs 24,600 crore in 2024-25 and Rs 38,901 crore in 2025-26.
For Haryana’s local governments, Rs 9,066 crore has been recommended.
Also, there has been a recommendation for Rs 2,715 crore for disaster management and Rs 695 crore for health and Rs 1,696 crore for agriculture sector.
For Pradhan Mantri Grameen Sadak Yojna (PMGSY), maintaining statistics and judiciary, Rs 128 crore, Rs 40 crore and Rs 300 crore has been proposed respectively. For higher education, Rs 146 crore has been suggested.
There is a state specific grant of Rs 2,003 crore for Haryana too.
The Debt–GSDP ratio also increased from 18.33 per cent (2011–12) to 25.09 per cent (2018–19).
Haryana’s Revenue Deficit (RD)–Fiscal Deficit (FD) ratio has been increasing over time and is currently 51.4 per cent (2018–19) indicating that most of the borrowings have gone for financing its RD.
The Commission pointed out outstanding liabilities, substantial budgetary support and huge arrears in accounts of state public sector units.
The Commission says that Haryana needs to improve on certain Sustainable Development Goals (SDG)- ‘Zero Hunger’, ‘Gender Equality’, ‘Sustainable Cities and Communities’, ‘Sustainable Consumption and Production’, ‘Climate Action’, and ‘Life on Land’.
Intra-state disparity between the most advanced district of Gurugram (part of NCR) and most backward Nuh (aspirational district) is staggering. Without Gurugram in the equation, Haryana’s GSDP and per capita income would reduce drastically.