Haryana Budget Analysis 2023-24

The Chief Minister of Haryana, Mr. Manohar Lal Khattar, presented the Budget for the state for the financial year 2023-24 on February 23, 2023.

Budget Highlights

• The Gross State Domestic Product (GSDP) of Haryana for 2023-24 (at current prices) is projected to be about Rs 11.2 lakh crore, amounting to growth of 13% over 2022-23.
• Expenditure (excluding debt repayment) in 2023-24 is estimated to be Rs 1,48,730 crore, an increase of 12% over the revised estimates of 2022-23.  In addition, debt of Rs 55,220 crore will be repaid by the state in 2023-24.
• Receipts (excluding borrowings) for 2023-24 are estimated to be Rs 1,15,455 crore, an increase of 15% as compared to the revised estimates of 2022-23 (Rs 99,745 crore).  In 2022-23, receipts (excluding borrowings) are estimated to be lower by 11% from the budget estimates (Rs 1,12,585 crore).
• Revenue deficit in 2023-24 is estimated to be 1.5% of GSDP (Rs 16,949 crore).  In 2022-23, the revenue deficit is expected to be 1.8% of GSDP which is higher than the budget estimate (1% of GSDP).
• Fiscal deficit for 2023-24 is targeted at 3% of GSDP (Rs 33,274 crore).   In 2022-23, fiscal deficit is estimated to be 3.3%, higher than the budget estimate of 3% of GSDP.

Policy Highlights

• A trust Haryana Parivar Suraksha Nyas has been established to consolidate existing insurance schemes. It implements - Mukhyamantri Haryana Karamchari Durghatna Bima Yojna (for C and D category employees and safai karamcharis), Mukhyamantri Vyapari Samuhik Niji Durghatna Bima Yojna (for small traders) and Mukhyamantri Parivar Samriddhi Yojana (social security net to Antyodaya families).

• Mukhyamantri Vyapari Khsatipurti Bima Yojna will become operational on 1 April 2023. It is a welfare scheme for street vendors, small traders and businesses having an annual turnover of upto ?1.50 crore. Under the scheme, compensation will be provided in case of loss of assets due to any natural causes or fire.

• A new scheme has been proposed named Deen Dayal Upadhyay Antyodyay Parivar Suraksha Yojana for providing assistance in case of death or disability in respect of a member of a family having annual income of upto ?1.80 lakh. The proposed assistance shall be ?1 lakh upto the age of 6 years, ?2 lakh above the age of 6 years upto the age of 18 years, ?3 lakh for age above  18 years upto 25 years, ?5 lakh for age over 25 years upto  40 years and ?2 lakh for the age of above 40 years upto the age of 60 years.

  The benefit amount will include the amount of  ?2 lakh under PMJJBY which is available in the age bracket of 18-40 years only.

• Agriculture: A new scheme will be introduced for farmers to facilitate the adoption of green manuring through dhaincha cultivation.  The government will bear 80% of the total cost (Rs 720 per acre) and 20% cost will be contributed by the farmer. 

In 2023-24, the government proposed to establish 3 new centre of Excellences:

a) Panchkula- On post harvest management

b) Pinangawan in Nuh district- for Onions

c) Munipur in Jhajjar district- for flowers

• ?Haryana Pashudhan Utthan Mission (HPUM), a scheme proposed for entrepreneurship development in the animal husbandry sector. It will be implemented through the Haryana Livestock Development Board (HLDB). Under this mission, training and support will be given to young entrepreneurs through Shri Vishwakarma Skill University and the Lala Lajpat Rai University of Animal Sciences (LUVAS).
• Renewable Energy:

• A new scheme to install Grid Connected Roof Top (GCRT) Solar power plants in social and community institutions run by government and NGOs will be taken up in 2023-24.

• Manufacturing: The state government will prepare a Toy Manufacturing Policy for electronic toys and a Medical Device Manufacturing Policy for promoting investments in medical devices. 

• 3 Multi Modal Logistics Parks (MMLP) are proposed to be developed in Hisar, Ambala and Mahendragarh districts.

• Employement: 

  Haryana Skill Development Mission will provide skill training in National Skill Qualification Framework aligned job roles to 2 lakh unemployed youths through specific trainings and courses in 2023-24. A sum of Rs 250 crore has been allocated for this purpose.

  Mukhyamantri Kaushal Mitra Fellowship Scheme will be created by Shri Vishwakarma Skill University (SVSU) as a pilot scheme. The scheme will engage youth and empower them with skills that will be a leverage for nation.

• URBAN DEVELOPMENT: 
• Divya Nagar Scheme, a State sponsored scheme, has been notified under which oxy-vans, city forests, large city parks and green spaces, tourism infrastructure, sports infrastructure, Integrated Command and Control Centres, energy efficient smart street lighting systems, auditorium, open air theatres will be developed. A sum of Rs. 500 crore has been proposed for this scheme.
• An act to establish Sonipat Metropolitan Development Authority for integrated planning and development of Kundli, Rai and Sonipat has been proposed.

Proposal to take up three metro links in 2023-24:

a) Metro link from Rezangla chowk to the Indira Gandhi International Airport in Delhi

b) Metro link from Southern Peripheral Road to Panchgaon via Global City and Manesar

c) Extension of the Bahadurgarh Metro upto Asaudha to connect with the Haryana Orbital Rail Network and Kundli-Manesar-Palwal (KMP) expressway. 

• The government proposed to provide 1 lakh houses in 2023-24 through the initiative taken by the it, in addition to the benefits available under Pradhan Mantri Awas Yojana (PMAY).

Deficits, Debt, and FRBM Targets for 2023-24

The Haryana Fiscal Responsibility and Budget Management Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.

Revenue deficit: It is the difference of revenue expenditure and revenue receipts.   A revenue deficit implies that the government needs to borrow to finance those expenses which do not increase its assets or reduces its liabilities.  The budget estimates a revenue deficit of Rs 16,949 crore (1.5% of the GSDP) in 2023-24.  In 2022-23, revenue deficit is estimated to be Rs 18,005 crore (1.8% of GSDP), which is 85% higher than the budget estimate (Rs 9,774 crore).

Fiscal deficit: It is the excess of total expenditure over total receipts.  This gap is filled by borrowings by the government and leads to an increase in total liabilities.  Haryana’s fiscal deficit is estimated to be 3.0% of GSDP in 2023-24 (Rs 33,274 crore).  In 2022-23, fiscal deficit is expected to be 3.3% of GSDP, higher than the budget estimate by about 0.3 percentage point.

Outstanding liabilities: Outstanding liabilities is the accumulation of total borrowings at the end of a financial year, it also includes any liabilities on public account.  In 2023-24, the outstanding liabilities is estimated to be 25.5% of GSDP.

Additional facts:

• Health: Haryana has allocated 6% of its expenditure on health in 2023-24.  This is marginally lower than the average allocation for education by states in 2022-23 (6.3%). 

1. Benefits of CHIRAYU-Ayushman Bharat extended to all families whose annual verified income in PPP is above Rs 1.80 lakh and up to Rs 3 lakh. Approximately 37.93 lakh families to be covered.
2.  State Action for Mental, Nutritional and Behavioural Upliftment Initiative (SAMANUBHUTI) to cater to the needs of specially-abled persons.

• Education: Haryana has allocated 14% of its total expenditure towards education, which is lower than the average allocation for education by states (14.8%).

1. E-Libraries – 979 buildings are being repaired for the establishment of e-libraries at a total cost of Rs 370 crore.

2. Two schools, a senior secondary school and an elementary school in every block and developed as Pradhan Mantri Schools for Rising India (PM SHRI) Model Sanskriti School

3. Gross enrolment ratio (GER) in higher education in Haryana to reach 40 per cent by 2030 from 32 per cent now.

• Rural Development: Haryana has allocated 5% of its expenditure towards rural development.  This is lower than the average allocation towards rural development by states (5.7%).
• Roads and bridges: Haryana has allocated 2.7% of its total expenditure towards roads and bridges, which is lower than the average allocation by states (4.5%).
• Energy: Haryana has allocated 5.7% of its expenditure towards energy.  This is higher than the average allocation towards energy by states (4.8%).
• Agriculture: Haryana has allocated 5.2% of its expenditure towards agriculture, which is marginally lower than the average allocation towards agriculture by states (5.8%).

• Fleet strength of Haryana Roadways to increase from 4,500 to 5,300. City bus service to be introduced in several cities. New multi-modal bus ports to come up in Gurugram, Ballabhgarh, Hisar, Sonipat, Karnal and Pipli on PPP mode and a city interchange terminal near City Center in Gurugram.

• The eligibility age limit for senior citizens to avail of concessional fare reduced from 65 to 60.

•  Government will purchase 10 single-engine trainer aircrafts and one multi-engine aircraft for the Haryana Institute of Civil Aviation.
•  The e-kshatipurti portal was launched by the government to allow farmers to directly report damage of crops due to natural disasters.?