This increased expenditure is divided between about equal increases in both revenue and capital expenditure, and matched by an equal increase in revenues. This has meant the state has been able to keep a firm grip on its fiscal deficit, while also balancing electoral needs against economic growth.
While revenue expenditure includes salaries, pensions, interest payments and subsidies, capital expenditure typically has to do with spending on physical assets.
The total expenditure for 2024-25 has been projected to increase to Rs 1,55,832.41 crore from Rs 1,37,631.47 crore in the revised estimates of 2023-24 — an increase of 13.2 percent.
Revenue expenditure has been budgeted at Rs 1,34,456.36 crore in FY25, which is 13 percent higher than the Rs 1,18,951.45 crore spent in FY24, according to the revised estimates for that year. It is 6.6 percent higher than the revenue expenditure initially budgeted for the year.
Capital expenditure is budgeted to grow 14 percent to 21,376.05 crore in FY25 compared to the revised estimates for FY24. However, this figure is 5.6 percent lower than the amount originally budgeted for FY24.
At the same time, the Haryana government expects an equally brisk growth in its revenues. Total receipts are budgeted to increase 13.2 percent to Rs 1,55,832.41 crore in FY25 compared with their level in the RE for FY24.
However, it is important to note that the revenue receipts in the RE for FY24 were 7.5 percent lower than what the government had budgeted for the year.
With both expenditure and revenue growing at about the same pace, Haryana has managed to lower its fiscal deficit as a percentage of its gross state domestic product (GSDP) to 2.8 percent, according to the revised estimates of FY24 — down from the 2.96 percent it had budgeted for the year.
For FY25, the Haryana government has budgeted an even lower fiscal deficit of 2.77 percent.
In his budget speech Friday, Khattar said that Haryana has witnessed a year-on-year growth in its GSDP at constant prices of 8 percent in 2023-24, whereas the national GDP registered a growth rate of 7.3 percent during the same period.
“The national per capita income at current prices has increased by 114 percent to Rs 1,85,854 in 2023-24 from Rs 86,647 in 2014-15, whereas it has increased by 121 percent in Haryana to Rs 3,25,759 in 2023-24 from Rs 1,47,382 in 2014-15,” said Khattar.
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Subsidies and ‘freebies’ galore
In a move that marks the last budget of his second term, Khattar, who also oversees the finance portfolio, has announced a series of subsidies and ‘freebies’.
These measures include a waiver of interest and penalties on farm loans, free bus travel for families with an annual income of Rs 1 lakh, and a significant increase — Rs 1 crore from Rs 50 lakh earlier — in ex gratia payments to the kin of battle casualties.
The budget speech also highlighted financial assistance of Rs 50,000 to daughters of construction workers to purchase electric scooties, an interest-free loan of Rs 45,000 with a subsidy of Rs 5,000 to gig workers to purchase electric scooters, “universalisation” of the health insurance scheme, drone pilot training to 5,000 girls and 500 women, and elimination of minimum charges on electricity bills for the poor.
Delivering his over two-hour budget speech, Khattar laid special emphasis on the announcements for farmers, whom the budget speech referred to as “annadata” (food giver) and gareeb (poor), and referred to “antyodaya”.
Khattar also coined the word “GYAN” for his budget speech, saying that it emphasises the welfare of Gareeb, Yuva (Youth), Annadata and Naari Shakti (Women).
“I announce to waive interest and penalty on crop loans, in case the crop loan was availed till 30 September 2023, and the principal amount is paid by 31 May 2024, provided by the farmer is registered on Meri Fasal Mera Byora (MFMB) portal,” Khattar said.
“Thereafter, the farmers will be eligible for the next crop loans from the primary agriculture cooperative societies (PACS) for the Kharif-2024 season,” he added.
The CM also proposed an allocation of Rs 7,570.77 crore for agriculture and allied sectors and cooperation for the financial year 2024-25, which is an increase of 38.9 percent over the revised estimates of Rs 5,449.26 crore.
Saying that Haryana has been providing a minimum support price (MSP) on 14 crops, Khattar added that the agricultural production had witnessed 8.1 percent growth in 2023-24.
Old-age pension & social security
Talking about the old-age pension and other social security pensions, Khattar said that 31.51 lakh beneficiaries were now getting Rs 3,000 as pension.
“We have taken the government to the doorsteps of the beneficiaries with the implementation of old-age pension, divyaang (differently abled) pension, widower pension for those above 40 years, widowed and unmarried pension above the age of 45. Over 2.14 lakh new beneficiaries of old-age pension have been identified through proactive mode in the last 18 months based on their Parivar Pehchan Patras,” he added.
Announcing a new scheme under the name of Haryana Antyodaya Parivar Parivahan Yojana (HAPPY), the CM said it will benefit poor families, who will now be able to avail free travel up to 1,000 kilometres every year in Haryana Roadways buses.
“Under this yojana, the benefit of free travel will be available to 22.89 lakh families with around 84 lakh persons having annual income up to Rs 1 lakh. The beneficiaries would be issued a smart card linked to the e-ticketing system to enable free travel in the Haryana Roadways buses. A sum of around Rs 600 crore is likely to be expended on the implementation of this scheme,” said the chief minister.
Khattar said that the benefits of CHIRAYU-Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) were provided to all below-poverty-line families, whose annual income is up to Rs 1.80 lakh in Parivar Pehchan Patra as on November 2022.
At present, over 45 lakh families are beneficiaries of Ayushman Bharat and 1.11 crore Ayushman Bharat cards have been provided in the state.
Moreover, financial support of Rs 765 crore has been provided to over 5.21 lakh persons who required healthcare support in 2023-24 till date, as against financial support of Rs 385 crore to 2.67 lakh beneficiaries in 2022-23, the CM announced.
“I am certain that the step taken by the government reiterates its commitment to stand by all poor families and will meet their healthcare expenditure in times of need,” he added.
Claiming that Haryana would almost reach the goal of universal health insurance coverage, Khattar said that last year, he extended the benefit of CHIRAYU-Ayushman Bharat to those families whose annual income in Parivar Pehchan Patra was between Rs 1.80 and Rs 3 lakh on the payment of a nominal annual contribution of Rs 1,500.
“I now propose to extend the benefit of the scheme to those families whose annual income is above Rs 3 lakh. Those in the annual income bracket of Rs 3-6 lakh can avail of the benefit on payment of an annual contribution of Rs 4,000. Those in the annual income bracket of above Rs 6 lakh can avail of the benefit of CHIRAYU-Ayushman Bharat on payment of an annual contribution of Rs 5,000,” he said.
“With this, Haryana would have almost reached the goal of universal health insurance coverage benefitting all its citizens,” Khattar added.
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Benefits for women and defence personnel
Talking about the drone pilot training, the CM said that it is being provided through Drone Imaging and Information Services of Haryana (DRIISHYA) at Karnal.
“I propose to train 5,000 sisters and 500 women SHGs (Self Help Groups) during 2024-25 in drone operations and maintenance and provide one drone each to the SHGs. They may rent it to farmers for agricultural purposes. The details of the scheme shall be notified separately by the Youth Entrepreneurship and Empowerment Department,” he added.
The CM said that gig workers had emerged as an important element of the service sector providing doorstep delivery of goods and services for online aggregators, such as Uber and Zomato, among others.
Since these workers normally come from the poorest strata of society, the government proposed to introduce a scheme where a subsidy of Rs 5,000 and an interest-free loan with a credit guarantee for Rs 45,000, or the actual showroom price, whichever is lesser, for the purchase of the electric scooter. To avail themselves of the benefits, these workers need to be registered with Haryana’s family ID scheme Parivar Pehchan Patra and have a family income of less than Rs 1.80 lakh per annum.
Khattar said that during 2023-24, the Haryana Building and Other Construction Workers Welfare Board spent Rs 250 crore on different welfare schemes supporting 85,338 beneficiaries.
The government in September 2023 launched a scheme for providing electric scooties for the daughters of registered construction workers with financial assistance up to Rs 50,000 or the actual ex-showroom price, whichever is less, through e-RUPI (a digital payment platform). This will enable girls of construction workers to avail better opportunities for higher education.
Stating that Haryana leads the country in its contribution to the defence services and Central Armed Police Forces (CAPF), Khattar said the government provided several benefits to defence, ex-servicemen and CAPF personnel in recognition of their services and supreme sacrifices.
“I propose to increase with immediate effect the ex gratia amount to the next of kin (NOK) of battle casualties belonging to Haryana, whether from the defence services or Central Armed Police Forces, to Rs 1 crore from Rs 50 lakh,” he added.
He also announced the hiking of the monthly allowance for freedom fighters to Rs 40,000 from Rs 25,000 given earlier.
(Edited by Richa Mishra)
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