Haryana Budget 2023-24 At a Glance for HCS / HPSC / HSSC Exams

Haryana Budget 2023-24 At a Glance

On February 23, 2023, Haryana Chief Minister Manohar Lal Khattar as Finance Minister presented the budget for the financial year 2023-2024 in the Haryana Legislative Assembly, which has been described as a historic budget and the biggest budget ever after the formation of Haryana. This budget is Rs 1,83,950 crore.

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

Haryana’s Economy

• GSDP: In 2022-23 Haryana’s GSDP (at constant prices) is estimated to grow at 7.1% over the previous year.  In comparison, the national GDP is estimated to growth at 7% in 2022-23.
• Sectors: In 2022-23 (at current prices), agriculture, manufacturing, and services are estimated to contribute 20%, 30%, and 51% of the economy. In 2022-23, the contribution from Primary Sector stood at 19.6
  percent with Secondary sector at 29.7 percent and Tertiary sector at 50.7 percent
• Per Capita GSDP: In 2021-22, the per capita GSDP of the state is Rs 3,04,422, an increase of 16% over the previous year.
• Unemployment: According to the Periodic Labour Force Survey (July 2021- June 2022), unemployment rate (current weekly status) for Haryana was 11.7% as compared to 6.6% at the national level.
• Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of salaries, pension, and interest.  A larger proportion of budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay.  In 2023-24, Haryana is estimated to spend Rs 62,851 crore on committed expenditure, which is 58% of its estimated revenue receipts.  This comprises spending on salaries (26% of revenue receipts), interest payments (19%), and pensions (12%).  In 2023-24, committed expenditure is expected to increase by 6% over the revised estimate of 2022-23

Deficits, Debt, and FRBM Targets for 2023-24

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 (1.51% of the GSDP) in 2023-24.  In 2022-23, revenue deficit is estimated to be Rs 18,005 crore (1.81% 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. Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure  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 2.96% 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.

Consolidated Fund (2023-24) Rupee comes from (percent)

Consolidated Fund (2022-23) Rupee Goes to (percent)

Haryana Budget 2023-24 Key Points-

• Budget 2023-24 reflects the Government’s firm commitment to substantially boost investment in Agriculture, Rural Development, Health and Education for comprehensive socio-economic growth of the State. Special emphasis has been given to boost capital investment, as the share of capital budget has been projected to be 31.5 per cent in fiscal 2023-24.
• Deen Dayal Upadhyay Antyodyay Parivar Suraksha Yojana: The new scheme will provide financial assistance in case of death or disability of a member whose family has an annual income of up to Rs 1.80 lakh based on data verified in Parivar Pehchan Patra database.  .
• 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.  Three new centres of excellence for horticultural crops will be established.  The Haryana Pashudhan Utthan Mission will be introduced to promote entrepreneurship development in animal husbandry. 
• For the energy sector, a provision of Rs 8,283 crore has been made in the budget, which is 14.9 percent more than the previous year. Apart from this, Panipat Thermal Power Plant is to be phased out in the next 6 years. Instead, the Chief Minister has made a provision of equity of Rs 800 crore for setting up a new 584 MW plant in Yamuna Nagar.
• 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.

• Rs 5,017 crore has been made to the Public Health Engineering Department and a comprehensive provision has also been made for cooperatives. It is working to provide clean drinking water at 55 liters per person per day in rural areas and 135 liters per person per day in urban and semi-urban areas. Under the Mahagram scheme in the budget, sewerage lines will be laid in 132 big villages in the first phase. 100 km during the next financial year. A target has been set to lay a new sewer line.
• With the financial budget of the year 2023-24, where investment in industries will increase in the state and employment opportunities for the youth will increase, the infrastructure of roads and railways will also be strengthened. Rs 1,442 crore has been allocated to the industry and MSME sector in the budget. 5000 km in the state in the year 2023-24. Improvement of roads, 553.94 km. long roads will be widened and strengthened, and 14 new bypasses will be constructed.
• Coaching will be provided in government colleges to 1000 students who have passed graduation to appear in competitive examinations for jobs in state, central government, other state governments and defence services. Free coaching will be provided to students of families with income up to Rs 1.80 lakh and 50 percent subsidy will be given to students of families with income of Rs 1.80 lakh to Rs 3 lakh.
• A provision of Rs 229 crore has been made for the labour sector in the budget for the year 2023-24. Special attention has been given to the children of laborers in the budget. The state has proposed to establish labour hostels as an affordable rental housing scheme for labours in the NCR.
• A provision was also made in the budget that no child till the age of 14 should be deprived of education. At present P.P.P. Based on the data, a survey is being conducted to identify those children who are not going to school.
• After identifying such children of construction workers, creches, play schools and site schools will be opened there. The cost of setting up these schools will be borne by the Haryana Building and Other Construction Workers Welfare Board. Such children will get assistance for their education till class 12th.
• A budget provision of Rs 5,893 crore has been made for urban development and housing sectors in the state. This is 11.1 percent more than the previous year. In the budget, Rs 500 crore has been allocated for ‘Divya Nagar Yojana’ and Rs 200 crore for maintenance of sewerage in big cities. An announcement has also been made in the budget to set up ‘Sonipat Metropolitan Development Authority’.
• In the year 2023-24, a budget provision of Rs 8,316 crore has been made for agriculture, horticulture, animal husbandry, fisheries and cooperative sectors.
• In the budget of the year 2023-24, a provision of Rs 2047 crore has been made for the Women and Child Development Department, which is 10.3 percent more than the revised estimates of the current year. In the budget, a target has been set to reduce such cases by 50 percent by tracking children facing malnutrition including stunting and wasting through the Child Promotion Portal.
• It is also proposed to add 4000 more play schools in the next two years by converting existing Anganwadi’s and providing training to Anganwadi workers in elementary education.
• Haryana to start Varishth Nagrik Sewa Ashram Scheme for elderly above the age of 80 years. There are around 3.3 lakh such benificiaries identified by government, suggest the budget document.
• The state has proposed to take up three other metro links in 2023-24. It would be metro link from Rezangla chowk to Indira Gandhi international airport in Delhi, metro link from southern peripheral road to panchgaon via global city and Manesar and extension of the Bahadurgarh metro upto Asaudha to connect with the Haryana Orbital rail network and Kundli Manesar palwal (KMP) expressway.
• When asked about the reason for 84% spiral in the revenue deficit, the chief minister said the income of the state government had suffered a setback in the last two years due to the pandemic. “Major shortfall in receipts is due to the discontinuation of the Goods and Services Tax compensation as the five-year period for its grant of ended in June 2022. We will make up this loss by pushing for an increase in our own tax receipts,” said additional chief secretary, finance, Anurag Rastogi during a briefing.

Budgetary Alignment with SDGs in BE 2023-24 (` Crore)