BUDGET 2019-20web1.hry.nic.in/budget/frbm.pdfACT, 2005 AND HALF YEARLY REVIEW OF TRENDS IN RECEIPTS AND EXPENDITURE IN RELATION TO BUDGET ESTIMATES 2017-18 & 2018-19 BUDGET 2019-20

gfj;k.kk ljdkj

GOVERNMENT OF HARYANA

gfj;k.kk jktdks’kh; mRrjnkf;Ro

rFkk

ctV izcU/ku vf/kfu;e] 2005 ds v/khu

;Fkk visf{kr jktdks’kh; uhfr dk fooj.k rFkk izdVhdj.k

rFkk

ctV vuqeku 2017&18 rFkk

2018&19 ds lEcU/k esa izkfIr;ksa rFkk

[kpZ ds :[k dk v/kZokf’kZd iqufoZyksdu

STATEMENTS OF FISCAL POLICY AND

DISCLOSURE

AS REQUIRED UNDER

THE HARYANA FISCAL RESPONSIBILITY &

BUDGET MANAGEMENT ACT, 2005

AND

HALF YEARLY REVIEW OF TRENDS IN

RECEIPTS AND EXPENDITUE IN RELATION TO

BUDGET ESTIMATES 2017-17 & 2018-19

foÙk foHkkx

Finance Department

2019-20

Form F-1

MACRO-ECONOMIC FRAMEWORK STATEMENT

1. Overview of the Economy: During 2017-18, the Gross State Domestic

Product (GSDP) of Haryana at constant (2011-12) prices was ` 486238.67 crores

recording a growth of 7.9 percent while at current prices it was ` 626053.52 crores

registering a growth of 12.5 percent. During 2018-19, as per Advance Estimates, the

GSDP at constant prices is likely to reach the level of ` 526055.24 crores, growing at

8.2 percent and ` 707126.33 crores at current prices, recording a growth of 12.9

percent.

2. Gross State Value Added Growth: As per Quick Estimates, the Gross State

Value Added (GSVA) of the State at current prices for 2017-18, was ` 541203.28

crores. The GSVA from agriculture sector (including crop and livestock production)

increased at 9.1 percent, the manufacturing sector at 9.2 percent and the services

sector at 13.7 percent with the overall growth of GSVA of 11.3 percent at current

prices in 2017-18. During 2018-19, the GSVA of the State at current prices has been

estimated at ` 604764.17 crores. The GSVA from agriculture sector is estimated to

grow at 5.3 percent, the manufacturing sector at 12.8 percent and the services

sector at 13.8 percent with the overall growth of GSVA of 11.7 percent at current

prices in 2018-19.

2.1 At constant prices, the share of primary sector in the GSVA was

18.2 percent in 2017-18. During this period, the share of secondary sector was

31.8 percent while the share of tertiary sector was 50.0 percent. In 2018-19, the

contribution of primary sector to GSVA is estimated to be ` 82472.65 crores

(17.8 percent), the contribution of secondary sector is estimated to be ` 148200.25

crores (32.0 percent). The tertiary sector’s contribution is estimated to be

` 232246.29 crores (50.2 percent). As per these estimates, primary sector at

constant prices has registered a growth of 5.5 percent, the secondary sector grew at

8.6 percent and tertiary sector at 8.2 percent in 2018-19.

2.2 The per capita income in 2017-18 at constant prices (2011-12) was

` 1,57,649 and ` 2,03,340 at current prices. During 2018-19, as per Advance

[2]

Estimates, the per capita income is likely to increase to ` 1,68,209 at constant

(2011-12) prices and ` 2,26,644 at current prices.

3. Overview of State Government Finances: As per recommendations of

14th Finance Commission, the outstanding debt as percentage of GSDP is to be

25 percent during the period 2015-16 to 2019-20. The 14th Finance Commission has

assumed Haryana as revenue surplus State and recommended the target of Fiscal

Deficit and Net borrowings at 3.25 percent of GSDP from 2015-16 to 2019-20.

However, being a revenue deficit State, the Ministry of Finance, Government of India

has fixed the target of Net borrowings of the State as 3.0 percent of GSDP for

2018-19. For making the amendment in the Haryana FRBM Act, 2005 with new set

of 14th FC targets, guidelines have not been finalized by the Government of India.

Necessary amendment in the Haryana FRBM Act, 2005 would be made on receipt of

the requisite guidelines from Government of India.

3.1. The Revenue Deficit has been assessed at ` 8506.70 crores in Revised

Estimates of 2018-19 which is 1.20 percent of the GSDP in RE 2018-19. In Budget

Estimates 2019-20, it is projected at ` 12022.49 crores in absolute terms at 1.53

percent of the GSDP. The Fiscal Deficit as percentage of GSDP is projected in

RE 2018-19 at 2.90 percent and is likely to be 2.86 percent in BE 2019-20. In

absolute terms it is estimated at ` 20532.66 crores in RE 2018-19 and likely to be

` 22461.99 crores in BE 2019-20.

3.2. The Total Revenue Receipts (TRR) were ` 62694.87 crores in 2017-18 and

` 76828.11 crores in RE 2018-19, showing an increase 22.5 percent. In BE 2019-20,

TRR have been assessed at ` 82219.41 crores. Total Revenue expenditure in

2017-18 was ` 73257.35 crores which has increased by 16.5 percent to ` 85334.81

crores in RE 2018-19. In BE 2019-20, it has been assessed at ` 94241.90 crores.

3.3. The schemes for the Consolidated Sinking Fund (CSF) and Guarantee

Redemption Fund (GRF) were notified on 31st July, 2003 by the State Government.

These Funds are maintained by the Reserve Bank of India. Under the CSF one

percent contribution of the outstanding balance of market borrowing is required to be

deposited in the Fund. The objective of this Fund is to utilize it as an Amortization

[3]

Fund for redemption of market loans of the Government. With regard to Guarantee

Redemption Fund, the actual receipts of the Guarantee Fees of the previous year

are invested in the Fund in each financial year. This Fund is to be utilized for

meeting the payment obligations arising out of the guarantees issued by the

Government in respect of bonds issued and other borrowings by the State Level

Public Sector Undertakings or other bodies. As per revised guidelines received from

the Reserve Bank of India, necessary amendments in the CSF and GRF Schemes,

notified on 31st July 2003, are being made with the approval of the competent

authority.

4. Prospects: The Revenue Deficit as percentage of GSDP is estimated to be

about 1.53 percent in Budget Estimates 2019-20.

The Fiscal Deficit, as percentage of GSDP is projected at 2.86 percent

in BE 2019-20 and is within the prescribed limit of 3 percent of GSDP. Similarly, the

outstanding debt, as a percentage of GSDP, estimated at 19.55 percent without the

borrowings under Ujwal Discom Assurance Yojana (UDAY) and 22.86 percent with

borrowings under UDAY in BE 2019-20, is also within the stipulated limit of

25 percent recommended by the 14th Finance Commission.

[4]

F-1 (Contd.)

Macro Economic Framework Statement

Economic Performance at a Glance

Table 1: Trends in Select Macroeconomic and Fiscal Indicators

Sr. No.

Particulars Absolute Value

(` crores)

Percentage Changes

over previous year

April-March April-March

Previous Year

2017-18

Current Year

2018-19

Previous Year

2017-18

Current Year

2018-19

Real Sector

1 Total GSDP

(a) at current prices 626053.52 707126.33 12.5 12.9

(b) at constant (2011-12)

prices

486238.67 526055.24 7.9 8.2

2. Total GSVA at basic prices*



prices

429237.19 462919.19 7.6 7.8

3. Agriculture (Crops + Livestock) Production (GSVA)



prices

71229.75 75230.36 5.3 5.6

4. Industrial (Manufacturing) Production (GSVA)



prices

101235.78 110589.96 5.5 9.2

5. Tertiary Sector Production (GSVA)



prices

214592.56 232246.29 9.8 8.2

(Contd.)

[5]

Sr. No.


(` crores)

Percentage Changes

over previous year


Previous Year

2017-18

(Actual)

Current Year

2018-19

(RE)

Previous Year

2017-18

(Actual)

Current Year

2018-19

(RE)

Government Finances **

1 Revenue Receipts

( 2 +3) 62694.87 76828.11 19.43 9.62

2 Tax Revenue

( 2.1+2.2) 48396.90 59200.60 19.14 11.57

2.1 Own Tax Revenue 41099.38 50946.00 20.79 14.00

2.2 State’s Share in Central Taxes

7297.52 8254.60 10.61 -1.40

3 Non-Tax Revenue

(3.1 + 3.2) 14297.97 17627.51 20.42 3.55

3.1 State's Own Non Tax Revenue

9112.85 9120.16 47.07 -16.98

3.2 Central Transfers 5185.12 8507.35 -8.67 40.88

4 Capital Receipts (5+6+7)

25495.28 25950.98 -6.56 9.96

5 Recovery of loans 6340.93 5378.32 551.53 -14.93

6 Other Receipts 39.87 40.00 51.77 5.26

7 Borrowings and other liabilities(Net)

19114.48 20532.66 -27.28 19.10

8 Total Receipts (1+ 4) 88190.15 102779.09 10.54 9.71

9 Revenue Expenditure

of which: 73257.35 85334.81 7.10 8.97

10 (a) Interest payments 11961.27 13846.56 13.46 16.48

(b) Subsidies 7600.00 8084.00 15.00 6.37

(c) Wages and Salaries

17254.31 19997.04 4.75 6.19

(d) Pension Payments 8783.14 8301.22 55.20 -1.18

11 Capital Expenditure 14932.80 17444.28 31.24 13.46

12 Total Expenditure (9+11)

88190.15 102779.09 10.54 9.71

[6]

Sr. No.


(` crores)

Percentage Changes

over previous year


Previous Year

2017-18

(Actual)

Current Year

2018-19

(RE)

Previous Year

2017-18

(Actual)

Current Year

2018-19

(RE)

13 Revenue Deficit (9-1)

10562.48 8506.70 -33.60 3.41

14 Fiscal Deficit 12- (1+5+6)

19114.48 20532.66 -27.28 19.10

15 Primary Surplus/Deficit (14-10a)

7153.21 6686.10 -54.56 24.90

16 Average amount of Ways and Means Advances from Reserve Bank of India

79.48 505.03 -- --

17 Average amount of Over Draft from RBI

Nil Nil -- --

18 Number of days of Over Draft

Nil Nil -- --

19 Number of occasions of Over Draft

Nil Nil -- --

Note:-

* GSVA estimates for 2018-19 are based on targets/anticipated achievements

in case of Agriculture & Allied sectors and on previous years’ trends in case of

remaining sectors. These estimates are related to the period 1st April to

31st March and are Quick Estimates for 2017-18 and Advance Estimates for

2018-19.

** The figures for 2018-19 have been projected on the basis of monthly accounts

received from Accountant General (A&E), Haryana and Online Budget

Allocation Monitoring Analysis System (OBAMAS). The interest payments on

GPF/Reserve Funds and that of Departments such as Irrigation, Transport,

Food & Supplies etc. would be reflected in March, 2019.

[7]

Form F-2

MEDIUM TERM FISCAL POLICY STATEMENT

A. Fiscal Indicators - Rolling Targets

Previous Year (Y-2)

Actual (2017-18)

Current Year (Y-1) Budget Estimates

(2018-19)

Current Year (Y-1) Revised

Estimates (2018-19)

Ensuing Year (Y) Budget

Estimates (2019-20)

Targets for next Two Years

Y + 1 (2020-21)

Y + 2 (2021-22)

1. Revenue Deficit as percentage of Total Revenue Receipts (TRR)

16.85 10.73 11.07 14.62 - -

2. Fiscal Deficit as percentage of GSDP

3.05 2.82 2.90 2.86 - -

3. Total outstanding Debt liabilities as percentage of GSDP

22.32 20.63 22.19 22.86 - -

4. [Any additional target(s)]

- - - - - -

Note: The award period of 14th Finance Commission is 2015-16 to 2019-20. The rolling targets of FY 2020-21 and 2021-22 will be considered as per 15th

Finance Commission

recommendations.

B. Assumptions underlying the fiscal indicators

1. Revenue Receipts

a) Tax Revenue

The tax revenue of the State budgeted at ` 49131.74 crores in BE 2018-19 is

projected to increase to ` 50946.00 crores in RE 2018-19. In BE 2019-20, the

tax revenue is estimated to be ` 51105.00 crores, projecting an increase of

4.02 percent over BE 2018-19.

b) Non Tax Revenue

The non-tax revenue of the State was budgeted at ` 11302.66 crores in

BE 2018-19, which has been revised downward to ` 9120.16 crores in

RE 2018-19. The estimates for BE 2019-20 are projected at ` 10024.95 crores

indicating an increase of 11.30 percent over BE 2018-19.

[8]

c) Devolution to Local Bodies

The State Government devolves funds to the Local Bodies for development

works in their area of jurisdiction. In addition to normal budgetary support, funds

are being allocated regularly as per Central Finance Commission and State

Finance Commission recommendations.

As per 5th State Finance Commission recommendations, a provision of

` 2700.00 crores (` 1500.00 crores for PRIs and ` 1200.00 crores for ULBs)

has been made in BE 2019-20 for Local Bodies. Apart from this, the amount

collected as 5 percent Cess on VAT in the ratio of 80:20 (PRIs and ULBs),

Share in Stamp Duty and Compensation & Assignment of Excise Duty have

been devolved to Local Bodies. However, two Schemes namely transfer of

5 percent Cess on VAT and Compensation & Assignment of Excise Duty have

been discontinued from September 2018 on the recommendations of Fifth

State Finance Commission. Budget provision of ` 1863.18 crores has been

made for these schemes in RE 2018-19 and budget provision of ` 878.40

crores has been made for transfer of Stamp Duty in BE 2019-20.

As per recommendations of 14th Finance Commission, total budget

provision of ` 1348.12 crores as Grants-in-Aid to Local Bodies (` 873.86 crores

for Gram Panchayats and ` 474.26 crores for ULBs) has been made in

RE 2018-19. Similarly in BE 2019-20, a budgetary provision of ` 1813.13

crores for Local Bodies (` 1176.68 crores for Gram Panchayats and ` 636.45

crores for ULBs) has been made.

d) Share of Own Tax Revenue to Total Tax Revenue

As per RE 2018-19, total tax revenue including share of Central taxes has been

estimated at ` 59200.60 crores, of which State's own tax revenue is

` 50946.00 crores, constituting 86.06 percent share in total taxes. Similarly, in

BE 2019-20, the total tax revenue is estimated at ` 62321.64 crores, which

includes State's own tax revenue of ` 51105.00 crores, constituting 82.00

percent share in total taxes.

e) Share of own non-tax revenue to total non tax revenue

As per RE 2018-19, total non-tax receipts including central grants are at

` 17627.51 crores, of which State's own non-tax revenue is ` 9120.16 crores,

[9]

which constituted 51.74 percent of total non-tax revenue. During 2019-20, the

total non tax revenue is estimated at ` 19897.77 crores including ` 10024.95

crores as State's own non tax revenue, thereby constituting 50.38 percent of

the total non tax revenue.

2. Capital Receipts- Debt stock, repayment, fresh loans and policy stance

(a) Loans and Advances from the Centre

In BE 2018-19, provision for loans and advances from Centre was made at

` 574.53 crores (EAP & NCDC) which has been revised to ` 812.76 crores in

RE 2018-19. During 2019-20, a budget provision of ` 751.35 crores has been

made for this purpose.

(b) Special Securities issued to National Small Savings Fund

Being a costlier loan, no budget provision on account of National Small Savings

Fund (NSSF) was made in BE and RE 2018-19. Similarly, no budget provision

has also been made in BE 2019-20.

(c) Recovery of loans and advances

A provision of ` 5360.18 crores with borrowings under UDAY and ` 170.18

crores without borrowings under UDAY was made in BE 2018-19 as recovery

of loans & advances towards the Capital account. In RE 2018-19, a provision of

` 5378.32 crores with borrowings under UDAY and ` 188.32 crores without

borrowings under UDAY has been made. In BE 2019-20, provision of

` 5449.44 crores with borrowings under UDAY and ` 259.44 crores without

borrowings under UDAY has also been made.

In the previous years, the State Government had decided to give soft loan

to the Private and Cooperative Sugar Mills of the State for making the pending

payment to the cane growers. To provide financial assistance to Private Sugar

Mills for making the payment to the Cane Growers, budget provision of

` 35.54 crores in RE 2018-19 has been made in the scheme namely “Financial

Assistance to Private Sugar Mills for making the payment to the Cane growers

in Haryana”. In BE 2019-20, provision of ` 0.01 crore has been made under this

Scheme. Further, for making the payment of arrears to cane growers under the

scheme namely “One Time Settlement of Loans to all Cooperative Sugar Mills,

[10]

Kaithal, Meham, Panipat, Rohtak, Sonipat, Jind, Palwal, Gohana, Shahbad &

Karnal”, a provision of ` 320.00 crores has been made in RE 2018-19. In

BE 2019-20, provision of ` 700.00 crores under this scheme has also been

made for the said purpose.

(d) Borrowings from Financial Institutions

A provision of ` 1514.25 crores was made as Negotiated Loans (NL) in

BE 2018-19 which include ` 1321.35 crores from NABARD and ` 192.90 crores

from NCR Planning Board (NCRPB). In RE 2018-19, Negotiated Loans have

been revised downwards to ` 877.90 crores (` 700.00 crores from NABARD

and ` 177.90 crores from NCRPB) resulting in decrease of ` 636.35 crores. In

BE 2019-20, keeping in view the likely utilization of negotiated loans, a

provision of ` 1500.00 crores as NABARD loan and ` 201.00 crores as loan

from NCRPB, with a total provision of ` 1701.00 crores has been made.

(e) Other Receipts (net)- Small Savings, Provident Fund, etc.

A provision of ` 1055.00 crores was made in BE 2018-19 as net receipts from

provident fund etc. As per receipt trends, the amount has been revised to

` 802.00 crores in RE 2018-19 and a provision of ` 453.00 crores has been

made in BE 2019-20.

(f) Outstanding liabilities- Internal Debt and other liabilities

As per RE 2018-19, the State debt liabilities are estimated at ` 130952.02

crores without borrowings under UDAY and ` 156902.02 crores with

borrowings under UDAY, which would go up to ` 153462.22 crores without

borrowings under UDAY and ` 179412.22 crores with borrowings under UDAY

in BE 2019-20.

3. Total Expenditure- Policy Stance

(a) Revenue Account

(i) Interest Payments

As per BE 2019-20, a total provision of ` 14532.77 crores without borrowings

under UDAY and ` 16632.62 crores with borrowings under UDAY has been

made for interest payments. This interest amount includes a sum of ` 11154.15

crores on market borrowings, ` 73.69 crores on central loans, ` 999.95 crores

[11]

on NSSF loans, ` 243.86 crores on negotiated loans, ` 1290.06 crores on

GPF, ` 350.00 crores on SBI Loans, ` 2126.85 crores for DISCOMs and

` 394.06 crores on others.

(ii) Major Subsidies

A total provision of ` 8084.00 crores has been made as Rural Electrification

(RE) Subsidy under Major Head 2801- Power (NP) in RE 2018-19 and

` 6878.40 crores in BE 2019-20.

(iii) Salaries

A provision of ` 19997.04 crores has been made for salaries in RE 2018-19,

which constitutes 26.03 percent of Total Revenue Receipts (TRR). The

provision for salaries has been kept at ` 21901.65 crores during 2019-20,

constituting 26.64 percent of Total Revenue Receipts.

(iv) Pensions

A provision of ` 8301.22 crores has been made in RE 2018-19, constituting

10.80 percent of TRR. A provision of ` 9000.01 crores has been made towards

payment of pensions in BE 2019-20 constituting 10.95 percent of TRR.

Capital Account

(i) Loans & Advances

In RE 2018-19, a provision of ` 1480.63 crores has been made as loans from

various sources and ` 1407.27 crores in 2019-20 BE.

(ii) Capital Expenditure

During 2017-18, the capital expenditure (net of expenditure on food

procurement) was ` 13885.24 crores. As per RE 2018-19, it is ` 17546.27

crores. In 2019-20 BE, it is projected at ` 18052.24 crores.

4. GSDP Growth

During 2017-18, the GSDP at current prices has been estimated at

` 626053.52 crores with a growth of 12.5 per cent over the previous year. As

[12]

per advance estimates of 2018-19, the GSDP at current prices is expected to

increase to ` 707126.33 crores with growth of 12.9 percent.

C. Assessment of Sustainability

Net balance on year's account (gross budget) is estimated at ` 161.83 crores in

RE 2018-19 and ` 148.20 crores in BE 2019-20. Total Tax-GSDP ratio, which

was 6.56 percent in 2017-18, is estimated at 7.20 percent in

RE 2018-19 and 6.51 percent in BE 2019-20. The own non-tax-GSDP ratio

which was 1.46 percent in 2017-18, is expected to be 1.29 percent in

RE 2018-19 and 1.28 percent in BE 2019-20. The ratio of share in central taxes

to GSDP which was 1.17 percent in 2017-18 and 1.17 percent in RE 2018-19,

has been estimated at 1.43 percent in BE 2019-20.

The grant-in-aid which was projected at ` 7198.62 crores in BE 2018-19 is

expected to be ` 8507.35 crores at RE 2018-19 and is projected to increase to

` 9872.82 crores in BE 2019-20.

The revenue expenditure that has been provided at ` 85186.53 crores in

BE 2018-19, is likely to be ` 85334.81 crores in RE 2018-19. During 2019-20

BE the revenue expenditure is estimated at ` 94241.90 crores, resulting in

revenue deficit of ` 12022.49 crores.

Expenditure on salaries and pensions, which was 41.53 percent of

TRR in 2017-18, has decreased to 36.83 percent in RE 2018-19 and is likely to

be 37.58 percent in BE 2019-20. Similarly, the ratio of interest payment to TRR,

which was 19.08 percent in 2017-18 has decreased to 18.02 percent in

RE 2018-19 and is expected to increase to 20.23 percent in BE 2019-20 in view

of increase in State borrowings.

The debt liabilities of the State stood at ` 113775.67 crores without

borrowings under UDAY and ` 139725.67 crores with borrowings under UDAY

during 2017-18. It is expected to be ` 130952.02 crores without borrowings

under UDAY and ` 156902.02 crores with borrowings under UDAY by the end

of 2018-19. In 2019-20, it is estimated at ` 153462.22 crores without

[13]

borrowings under UDAY and ` 179412.22 crores with borrowings under UDAY.

The ratio of State Debt to GSDP which was at 18.17 percent without

borrowings under UDAY and 22.32 percent with borrowings under UDAY in

2017-18 has increased to 18.52 percent without borrowings under UDAY and

decreased to 22.19 percent with borrowings under UDAY in RE 2018-19. It has

been estimated at 19.55 percent without borrowings under UDAY and 22.86

percent with borrowings under UDAY by the end of 2019-20.

[14]

Form F-3

A. Fiscal Policy Overview

During 2017-18, the GSDP of Haryana has recorded a growth of

7.9 percent at constant (2011-12) prices and 12.5 percent at current prices. During

2018-19 as per Advance Estimates, the growth of GSDP is estimated at 8.2 percent

at constant (2011-12) prices and 12.9 percent at current prices.

B. Fiscal policy for ensuing year

(1) Tax Policy

In step with the Central Government, the Haryana Government has also

implemented the Goods and Service Tax (GST) in the State w.e.f. 01.07.2017. The

taxation policy is being revised from time to time by the State Government.

(2) Expenditure Policy

The focus is on adequate funding of infrastructure sectors including irrigation,

power and public works. Similarly, to take care of the social sectors, the outlay for

health and education has been increased over the years. The non- essential revenue

expenditure is being contained.

Further, the Government recognizes the need to leverage financial resources

for creation of productive assets, while maintaining fiscal prudence, in order to

sustain the growth trajectory of the State. Therefore, to ensure efficient and prudent

utilization of resources, a new scheme- “Performance Linked Outlay (PLO)” has

been introduced by the State Government.

The implementation of the PLO scheme will improve the financial

management of the State by encouraging fiscal prudence. It will incentivize

Departments to target the resources for productive utilization. Further, it would be

instrumental in deterring the parking of funds and rushed withdrawals towards the

fag end of the year.

In order to streamline the productive expenditure and curb the parking of

funds, the State has also introduced a system of releasing Grants-in-Aid online

where the departments have been mandated to submit details of funds utilized,

and funds unspent alongwith information pertaining to bank accounts in which

[15]

those funds have been parked and interest accrued thereof, through a Grant-in-Aid

(GIA) Portal. All the Departments have also been mandated to reduce the number

of accounts being operated by them to one account and not to open new bank

accounts without the express consent of the Finance Department.

Further in order to streamline expenditure, foster accountability and curb

implementation leakages, the Government has introduced the “Haryana

Accountability of Public Finance Bill, 2019” in the budget session 2019. Broadly,

interalia, this proposed legislation implements the recommendations of the 13th

Finance Commission to establish and strengthen internal audit mechanisms in the

Government, establish the “Haryana Audit and Accounts Service”, make it

mandatory for all departments, organisations and other entities receiving public

monies from the State Government to declare, every year, the details of parked

funds alongwith interest accrued and facilitates withdrawal of parked/unspent

money from such entities by the Government. The proposed legislation also

broadens the Audit and Accounting mechanism to autonomous bodies, local

bodies, NGOs and others to the extent of public finances received from the State.

This legislation, when enacted, will give a significant fillip to Government’s thrust to

reduce revenue deficit and contain it within norms.

(3) Consolidated Sinking Fund

The Consolidated Sinking Fund was set-up in 2002-03, which is being

maintained with the RBI. A sum equal to 1 percent of the outstanding market

borrowings as on 31st March of preceding year was required to be invested in the

Fund every year. Total funds of ` 1641.03 crores are invested in the Fund as on

31.03.2017. As per revised guidelines received from the Reserve Bank of India,

necessary amendments in the Consolidated Sinking Fund Schemes notified on

31st July 2003 are being made with the approval of the competent authority.

(4) Levy of User charges

Relevant user charges are being revised from time to time. During the next

year the user charges will be reviewed and revised, if the need arises.

C. Strategic priorities for the ensuing year:

To manage the debt of the State and investment of surplus money, a Debt

Management Cell has been created in Finance Department Haryana. This Cell

would be functional in FY 2019-20 after filling up the newly created posts.

[16]

The Haryana State Financial Services Limited is being established in the State

with the objectives (a) to advance, deposit, lend money or provide financial

assistance with or without security to the State PSEs, (b) to carry on the business of

a finance company and to provide short/long term loans to State entities and (c) to

receive grants, loans, advances or other moneys or deposits or otherwise, from

State, Central Government or from other financial institutions by the State entities.

An Assets Management Cell has been created in Revenue Department to

identified government land/properties both within and outside the State. The

department has identified 24,109 government properties so far. An amount of

` 1000.00 crores is expected to be mobilized through sale of these properties.

Resource Mobilization Committee: A Resource Mobilization Committee has been

constituted under the chairmanship of Chief Minister to suggest the ways and means

for augmenting the State resources and plugging leakages. Meetings of the said

Committee are being convened from time to time and action taken on the decisions

are also being reviewed from time to time. In future also, the meetings of the said

Committee will be regularly convened.

D. Rationale for policy changes

The New Excise Policy for the financial year 2019-20 is under consideration of

the Excise & Taxation Department. The Excise Policy aims at achieving and

strengthening the long term objectives of the Department of optimizing revenue while

plugging leakages and making the process more transparent. The concerns of all the

stakeholders have been attempted to be addressed while formulating the policy.

E. Policy evaluation

As per recommendations of 14th Finance Commission, the outstanding debt

as percentage of GSDP is required to be 25 percent from 2015-16 to 2019-20. The

14th FC Commission has assumed Haryana as a Revenue Surplus State and

recommended the target of Fiscal Deficit and Net borrowings at 3.25 percent of

GSDP from 2015-16 to 2019-20. However, being a revenue deficit State currently,

the Ministry of Finance, Government of India has fixed the target of Net borrowings

of the State as 3.0 percent of GSDP for 2018-19. For making the amendment in the

Haryana FRBM Act, 2005 with new set of 14th FC targets, guidelines have not been

finalized by the Government of India. Necessary amendment in the Haryana

[17]

FRBM Act, 2005 would be made on receipt of the requisite guidelines in this regard

from the Government of India.

The Revenue Deficit, as percentage of GSDP is estimated to be 1.20 percent

in RE 2018-19 and about 1.53 percent in BE 2019-20. The Fiscal Deficit, as

percentage of GSDP, is estimated to be 2.90 percent in RE 2018-19 and

2.86 percent in BE 2019-20.

[18]

Form D-1 [See rule 6]

SELECT FISCAL INDICATORS

Sr. No

Item Previous Year

2017-18 (Actual)

Current Year 2018-19 (Revised

Estimates)

1. Gross Fiscal Deficit as percentage of GSDP 3.05 2.90

2. Revenue Deficit as percentage of Gross Fiscal Deficit

55.26 41.43

3. Revenue Deficit as percentage of GSDP 1.69 1.20

4. Revenue Deficit as percentage of TRR 16.85 11.07

5. Total Liabilities -GSDP Ratio (%) 26.68 26.00

6. Total Liabilities to Total Revenue Receipts (%) 266.41 239.32

7. Total Liabilities to State’s Own Revenue Receipts (%)

332.63 306.11

8. State’s Own Revenue Receipts to Revenue Expenditure (%)

68.54 70.39

9. Capital Outlay as percentage of Gross Fiscal Deficit

70.83 77.75

10. Interest Payment as percentage of Revenue Receipts

19.08 18.02

11. Salary expenditure as percentage of Revenue Receipts

27.52 26.03

12. Pension expenditure as percentage of Revenue Receipts

14.01 10.80

13. Non-developmental expenditure as percentage of aggregate disbursements

28.24 24.69

14. Gross Transfers from the Centre as percentage of Aggregate Disbursements

13.21 13.92

15. Non-tax Revenue as percentage of TRR 22.81 22.94

[19]

Form D-2 [See rule 6]

A. Components of State Government Liabilities (` crores)

Category Raised during the Fiscal Year

Repayment/ Redemption during

the Fiscal Year

Outstanding Amount

Previous Year

2017-18 (Actual)

Current Year

2018-19 (RE)

Previous year

2017-18 (Actual)

Current year

2018-19 (RE)

Previous year

(Actual) as on 31.3.2018

Current year (RE) as on

31.3.2019 Market Borrowings

16639.49 21267.00 800.00 3295.00 97019.60 114991.60

Loans from Centre

141.01 292.76 185.60 202.93 1941.27 2031.10

Special Securities issued to the National Small Savings Fund

0.00 0.00 954.14 976.06 11350.09 10374.03

Borrowings from Financial Institutions/ Banks

4629.78 12297.90 4347.61 12207.32 3464.71 3555.29

Power Bonds

0.00 0.00 0.00 0.00 25950.00 25950.00

Ways and Means Advances/Over Draft from Reserve Bank of India

79.48 915.00 79.48 915.00 0.00 0.00

Floating Debt from RBI

0.00 0.00 0.00 0.00 0.00 0.00

Small Savings, Provident Funds etc.

3342.50 3240.00 2116.19 2438.00 14547.52 15349.52

Reserve Funds/ Deposits

21630.59 26333.03 20303.33 27605.48 12593.39 11466.54

Other Liabilities

8098.05 9000.00 8123.14 9007.00 156.77 149.76

Total 54560.90 73345.69 36909.49 56646.79 167023.35 183867.84

[20]

Form D-2 (Contd.)

[See rule 6]

B. Weighted Average Interest Rates on State Government Liabilities

Category Raised during the Fiscal

Year (in percentage)

Outstanding Amount (End-March) (` crores)

Previous Year

2017-18 (Actual)

Current Year 2018-19

(Revised Estimates)

Previous year

2017-18 (Actual)

Current year 2018-19 (Revised

Estimates) Market Borrowings

7.77

8.48 97019.60 114991.60

Loans from Centre

(EAP)

1.71

0.80

1941.27

2031.10

Special Securities

issued to the National

Small Savings Fund

--

--

11350.09

10374.03

Borrowings from

Financial Institutions/

Banks

(NABARD/NCRPB)

5.25

7.00

5.00

7.00

3464.71

3555.29

Power Bonds

--

-- 25950.00 25950.00

Ways and Means

Advances/

Over Draft from

Reserve Bank of

India

6.25

--

6.00

--

0.00

--

0.00

--

Floating Debt from

RBI

-- --

0.00

0.00

Small Savings,

Provident Funds etc. 7.78 7.80 14547.52 15349.52

Reserve Funds/

Deposits (GRF/CSF)

7.95

8.13

7.95

8.13 12593.39 11466.54

Other Liabilities -- -- 156.77 149.76

Total -- -- 167023.35 183867.84

[21]

Form D-3

[See rule 6]

Consolidated Sinking Fund (CSF)

(` crores)

Outstanding

balance in

Consolidated

Sinking

Fund at the

beginning of

the previous

year as on

01.04.2017

Additions

during the

previous

year

2017-18

Withdrawals

from

Consolidated

Sinking

Fund during

the previous

year

2017-18

Outstanding

balance in

Consolidated

Sinking

Fund at the

end of the

previous

year/

beginning of

current year

as on

31.03.2018

(4)/

Outstanding

Stock of

Statutory

Liquidity

Ratio

Borrowings

(%)

Additions

to

Consolidated

Sinking

Fund during

the current

year

2018-19

Withdrawals

from

Consolidated

Sinking Fund

during the

current year

2018-19

Outstanding

at the end

of current

year/

beginning

of ensuing

year

as on

31.3.2019

(8)/ Stock

of Statutory

Liquidity

Ratio

Borrowings

(%)

(1) (2) (3) (4) (5) (6) (7) (8) (9)

1641.03 133.46 -- 1774.49 1.83 -- -- 1774.49 1.54

[22]

Form D - 4

[See rule 6]

Guarantees given by the Government

Year-2017-18

(` crores) Category Maximum

Amount

Guaranteed

during the

year

Outstanding

at the

beginning

of the year

as on

31.3.2017

Additions during the

year 2017-18

Reductions

during the

year (other

than

invoked

during the

Year)

Invoked during the

year

2017-18

Outstanding

at the end

of the year

As on

31.3.2018

Guarantee

Commission or Fee

2017-18

Dischar-

ged

Not

Dischar-

ged

Recei-

vable

Received

1 2 3 4 5 6 7 8 9 10 11

A-

Power Companies & Statutory Corporations

6347.07 6083.89 263.18 1738.28 0.00 0.00 4608.79 9.01 9.01

B- Government

Companies 3130.44 999.82 2130.62 361.59 0.00 0.00 2768.85 46.72 0.36

C-

Cooperative Bank and Cooperative Societies

1119.26 1046.13 73.13 266.01 0.00 0.00 853.25 7.38 0.00

D-

Municipal Corporation and Urban Development (HSVP)

8391.17 101.71 8289.46 2484.34 0.00 0.00 5906.83 167.79 170.00

Total A+B+C+D 18987.94 8231.55 10756.39 4850.22 0.0 0.0 14137.72 230.90 179.37

[23]

Form D-5

[See rule 6]

Guarantee Redemption Fund (GRF)

(` crores)

Outstanding

invoked

guarantees at

the end of the

previous year

2017-18

Outstanding

amount in

Guarantee

Redemption

Fund at the

end of the

previous year

as on

31.3.2018

Amount of

guarantees

likely to be

invoked during

the current

year 2018-19

Addition to

Guarantee

Redemption

Fund during

the current

year 2018-19

Withdrawal

from the

Guarantee

Redemption

Fund during

the current

year 2018-19

Outstanding

amount in

Guarantee

Redemption Fund

at the end of the

current year as on

31.3.2019

(1) (2) (3) (4) (5) (6)

-- 1042.78 -- 179.37 -- 1222.15

[24]

Form D-6

[See rule 6]

Statement of Assets

Assets at the beginning of the reporting year

Assets acquired during the reporting year

Cumulative total of assets at the end of the reporting year

Book Value

(` crores) Book Value

(` crores) Book Value

(` crores) Financial Assets:-

Loans and Advances 17494.30 3541.68 21035.98

Loans to Local Bodies 0.0 0.0 0.0

Loans to companies 13230.51 3578.99 16809.50

Loans to others 4263.79 -37.31 4226.48

Equity Investment 10126.91 1894.73 12021.69

Shares 0 0 0

Bonus shares 0 0 0

Investments in Government of India dated securities/Treasury Bills

3442.52 -457.95 2984.57

Investments in 14-day Intermediate Treasury Bills

4175.92 -1618.08 2557.84

Other financial investments (On Reserve Funds and Fixed Assets) (Please specify)

51848.25 4723.70 56571.95

Total 82912.03 9702.16 92614.29

Physical Assets:-

Land Building—Office/Residential

345465.33 1909.29 347181.69

Roads 71619.09 1538.84 73155.86

Bridges 2183.78 531.75 2715.53

Irrigation Projects 7515.81 184.79 7700.60

Power Projects 4769.14 115.07 4486.41

Other capital projects 9329.21 94.05 9401.96

Machinery and equipment 22621.03 119.07 22640.91

Office equipment 428.01 73.78 488.46

Vehicles 1779.17 106.70 1891.30

Total 465710.57 4673.35 469662.72

Notes:- The Financial Assets as per Finance Accounts and Physical Assets are as per information supplied by the State Government Departments FY 2016-17 excluding Elementary Education and Health & Family Welfare Departments (where the data is

under verification). .

[25]

Form D-7 [see rule 6]

Tax Revenues Raised But Not Realised (principal taxes)

(As at the end of the reporting year) Amount under disputes Amount not under disputes Grand

Total ( ` crores) ( ` crores)

Major Head

Description Upto 5 years

Over 5 years

Total Upto 5 Years

Over 5 years

Total

1

Taxes on Income and Expenditure

5.85 7.40 13.25 8.70 11.11 19.81 33.06

Taxes on Professions, Trades, callings and employment

5.85 7.40 13.25 8.70 11.11 19.81 33.06

2

Taxes on Property and Capital Services

11.54 103.40 114.94 705.51 587.78 1293.29 1408.23

Land Revenue 11.54 103.11 114.65 342.56 494.85 837.41 952.06

Stamps and Registration fees 0.00 0.29 0.29 362.95 92.93 455.88 456.17

3

Taxes on Commodities and Services

8626.44 11446.02 20072.46 24019.57 9312.74 33332.31 53404.77

Value Added Tax (VAT) 4175.58 6612.32 10787.90 11137.80 4881.85 16019.65 26807.55

Central Sales Tax

4425.41 4816.59 9242.00 12746.86 4328.45 17075.31 26317.31

Sales Tax on Motor Spirit and Lubricants

0.00 0.00 0.00 0.00 0.00 0.00 0.00

State Excise 25.45 17.11 42.56 134.91 102.44 237.35 279.91

4

Taxes on Vehicles

0.02 0.00 0.02 18.38 42.34 60.72 60.75

(i) Road Tax 0.02 0.00 0.02 13.04 3.42 16.46 16.49

(ii) Passenger and Goods Tax (PGT)

0.00 0.00 0.00 5.34 38.92 44.26 44.26

5

Other Taxes 2078.48 755.52 2834.00 2.14 958.71 960.85 3794.85

(i) Entry Tax 2078.47 755.50 2833.97 2.08 956.40 958.48 3792.45

(ii) Luxury Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(iii) Entertainment Tax 0.01 0.02 0.03 0.06 2.31 2.37 2.40

TOTAL 10722.33 12312.34 23034.67 24754.30 10912.68 35666.98 58701.66

Note: Reporting year refers to the second year preceding the year for which the annual financial statement and demands for grants are presented.

[26]

Form D-8

[See rule 6] Statement of Miscellaneous Liabilities: Outstandings

(` crores)

Outstanding Amount $

Major Works and Contracts 2739.21

Committed liabilities in respect of land acquisition charges 224.59

Claims in respect of unpaid bills on works and supplies 396.99

$ The outstanding amount pertains to the end-March position for the year before the

current year.

[27]

Form D-9

(See rule-6)

State’s Economy and Related Fiscal Strategy

( ` crores )

Sr. No. Particular Previous Year

2017-18

(Actual)

Current Year

2018-19

(Revised Estimates)

A. Total GSDP

1. (a) at current prices 626053.52 707126.33

(b) at constant (2011-12) prices 486238.67 526055.24

2. GSVA at basic prices*

(a) at current prices 541203.28 604764.17


3. Agriculture (Crops + Livestock) Sector (GSVA)



4. Industry (Manufacturing) Sector (GSVA)



5. Tertiary Sector (GSVA)



B Fiscal Strategy

1 Revenue Receipts (2+3) 62694.87 76828.11

2 Tax Revenue (2.1+2.2) 48396.90 59200.60

2.1 Own Tax Revenue 41099.38 50946.00

2.2 State’s Share in Central Taxes 7297.52 8254.60

3 Non-Tax Revenue (3.1 + 3.2) 14297.97 17627.51

3.1 State's Own Non Tax Revenue 9112.85 9120.16

3.2 Central Transfers (Grants) 5185.12 8507.35

4 Capital Receipts (5+6+7) 25495.28 25950.98

5 Recovery of loans 6340.93 5378.32

6 Other Receipts 39.87 40.00

[28]

Sr. No. Particular Previous Year

2017-18

(Actual)

Current Year

2018-19

(Revised Estimates)

7 Borrowing and other liabilities(Net) 19114.48 20532.66

8 Total Receipts (1+ 4) 88190.15 102779.09

9 Revenue Expenditure of which:

73257.35 85334.81

10 (a) Interest payments 11961.27 13846.56

(b) Subsidies 7600.00 8084.00

(c) Wages and Salaries 17254.31 19997.04

(d) Pension Payments 8783.14 8301.22

11 Capital Expenditure 14932.80 17444.28

12 Capital Expenditure Net of Expenditure on food procurement

13885.24 17546.27

13 Total Expenditure (9+11) 88190.15 102779.09

14 Revenue Deficit (9-1) 10562.48 8506.70

15 Fiscal Surplus/Deficit 13-(1+5+6) 19114.48 20532.66

16

Primary Deficit (15-10a) 7153.21 6686.10

* GSVA estimates for 2018-19 are based on targets/anticipated achievements

in case of Agriculture & Allied sectors and on previous years’ trends in case

of remaining sectors. These estimates relate to the period 1st April to

31st March and are Quick Estimates for 2017-18 and Advance Estimates for

2018-19.

[29]

Form D-10

(See rule-6)

Number of Employees in Government, Public Sector and Aided Institutions and

Related Salaries

Sr. No.

Item Previous Year

2017-18 (Actual)

Current Year

2018-19 (Revised Estimates)

No. of Employees

Related Salary

(` crores)

No. of Employees

Related Salary

(` crores) 1.

State Government

341775 20491.11 360132 22900.34

2. Public Sector 71660 3737.00 73134 3968.56

3. Aided Institutions

10566 555.99 10159 639.09

Total 424001 24784.10 443425 27507.99

Note: In the above said details, the number of employees engaged on contract basis, part time, work charged, D.C. rates etc. alongwith their related salary are included.

[30]

HALF YEARLY REVIEW OF TRENDS IN RECEIPTS AND EXPENDITURE IN RELATION TO BUDGET ESTIMATES- 2017-18 AND 2018-19. ***

The Haryana Fiscal Responsibility and Budget Management (FRBM) Act,

2005 was enacted on 6th July, 2005. Section 11(1) of the Act, provides as follows:-

“The Minister-in-Charge of the Department of Finance

(hereinafter referred to as ‘Minister of Finance’) shall review,

half yearly, the trends in receipts and expenditure in relation

to the budget estimates and place before the House of the

State Legislature, the outcome of such reviews.”

In view of the above provision, Chief Minister, Haryana and Finance Minister,

Haryana reviewed the trends in receipts in relation to Budget Estimates 2017-18 and

2018-19 in the meeting held on 28.11.2018. The meeting was attended by the

Administrative Secretaries of major revenue earning Departments.

The Additional Chief Secretary, Finance apprised the participants about the

fiscal targets to be achieved under the FRBM Act as under:-

General

The Haryana Fiscal Responsibility and Budget Management Act was enacted

in July, 2005 with an objective to eliminate the revenue deficit and reduce the fiscal

deficit within the prescribed limit.

As per recommendations of 14th Finance Commission, necessary

amendment in the FRBM Act, 2005 was required to be made. The

fiscal parameters/targets of fiscal deficit and debt recommended by the 14th Finance

Commission are illustrative in nature. The Ministry of Finance Government of India is

yet to communicate guidelines about the fiscal parameters of the State for adoption

and making amendment in the FRBM Act. In view of this, amendment in the Act has

not been made so far.

In the meeting held on 28.11.2018, Additional Chief Secretary, Finance

informed the prevailing scenario with reference to the receipts and outgoes of the

State. The trends in Tax and Non-Tax receipts during the current financial year

[31]

2018-19 up to September, 2018 with comparison to corresponding period of 2017-18

was reviewed as under:-

A) Revenue Receipts

During 1st half of 2017-18 (April-September), the receipts were

` 29262.12 crores i.e. 42.53% against the Budget Estimates 2017-18 of ` 68810.88

crores. During 2018-19, against the Budget Estimates of ` 76933.02 crores, the

receipts during 1st half of the year were at ` 25440.30 crores which constitute

33.07%. Thus, during the 1st half of 2018-19, the Revenue Receipts are lower by

9.46% (33.07%-42.53%) as compared to the corresponding period of 2017-18. Total

Revenue Receipts during 2017-18 were ` 62694.87 crores against the Revised

Estimates of ` 70085.13 crores constituting 89.46% of the estimates.

i. State Tax Revenue

During 1st half of 2017-18 (April-September), the collection was ` 20850.10

crores constituting 48.11% against the Budget Estimates of ` 43339.74 crores.

During 2018-19, against the Budget Estimates of ` 49131.74 crores, the State tax

collection in the 1st Half of the year is ` 15756.37 crores constituting 32.07%. Thus,

the State tax revenue receipts during 1st half of 2018-19 are lower by 16.04%

(32.07%-48.11%) as compared to the corresponding period of 2017-18. During

2017-18, against the Revised Estimates of ` 44689.74 crores, total State tax

revenue receipts were ` 41099.38 crores constituting 91.97% of the estimates.

ii. State Non-Tax Receipts

During 1st half of 2017-18, the achievement was ` 3627.73 crores constituting

35.98% against the Budget Estimates of ` 10081.72 crores. In 2018-19, the

achievement during 1st half of the year is ` 3449.35 crores i.e. 30.52% against the

Budget Estimates of ` 11302.66 crores, which is lower by 5.46% (30.52%-35.98%)

compared to the corresponding period of 2017-18. During 2017-18, against the

Revised Estimates of ` 10984.92 crores, the non-tax receipts were ` 9112.85 crores

constituting 82.96% of the estimates.

[32]

iii. Share in Central Taxes

During 1st half of 2017-18, the achievement was ` 3136.38 crores i.e. 37.46%

against the Budget Estimates of ` 8371.78 crores. During 2018-19, the achievement

in the 1st half of the year is ` 3492.75 crores i.e. 37.56% against the Budget

Estimates of ` 9300.00 crores, which is higher by 0.10% (37.56%-37.46%)

compared to the corresponding period of 2017-18. During 2017-18, against the

Revised Estimates of ` 8371.78 crores, the share in Central taxes was ` 7297.52

crores constituting 87.17% of the estimates.

iv. Grant-in-Aid from Centre

In the 1st half of 2017-18, the achievement of Grant-in-aid from Centre was

` 1647.91 crores constituting 23.48% against the Budget Estimates of

` 7017.64 crores. During 2018-19, the achievement in 1st half of the year is

` 2741.83 crores i.e. 38.09% against the Budget Estimates of ` 7198.62 crores,

which is higher by 14.61% (38.09%-23.48%) as compared to the corresponding

period of 2017-18. During 2017-18, against the Revised Estimates of ` 6038.69

crores, Grant-in-aid received from the Central government was ` 5185.12 crores

during the year constituting 85.86% of the estimates.

During the review of the revenue receipts of the Departments, the following

issues related to receipts of various departments were discussed:-

1. Additional Chief Secretary, Finance informed that the receipts under stamp

and registration during 2018-19 are buoyant as compare to corresponding period of

previous year. In this regard Additional Chief Secretary, Revenue informed that

additional revenue of about ` 1000 to ` 1200 crores is expected to be received under

Stamps and Registration head during current fiscal 2018-19.

2. Hon’ble Finance Minister expressed concern about low receipts under Taxes on

Vehicles and Road Transport. He pointed out that there has been an 18% increase in

the sales of vehicle during current fiscal, which should reflect in higher receipts under

the registration of vehicles in the State. However, the receipts under the head is on

lower side. Hon’ble Chief Minister directed the Department to check the diversion of

vehicle registration to other neighboring States at the cost of Haryana.

[33]

3. Additional Chief Secretary, Transport informed that the receipts target of the

Department was fixed keeping in view the implementation of Kilometer scheme as

well as e-ticketing project. He informed that three major strikes by the Roadways

employees in current fiscal year was the main reason for lower receipts. However,

Department is making all efforts to increase the revenue receipts and to curtail

un-necessary expenditure. He further informed the House that efforts are being

made to operationalize the Kilometer scheme in the current fiscal itself which will

increase revenue receipts of the Department.

4. Hon’ble Finance Minister has pointed out that real estate sector has shown a

positive growth trend which has reflected in enhanced receipts under stamp and

registration during 2018-19. Hence, this impact should also be reflected in the EDC

collection by the Town & Country Planning Department. In this context, Hon’ble Chief

Minister directed the Department to look into the matter and take all necessary steps

to achieve the receipts target of FY 2018-19.

5. The issue of low receipts in mining sector during current fiscal was discussed.

The representative of the Department informed that due to litigations, mining

contracts of sand mines have been cancelled. Further, on account of various judicial

proceedings and orders, recoveries could not be made from various mines.

6. The issue regarding releases of funds under various Centrally Sponsored

Scheme (CSSs) from Ministries concerned, was discussed. Hon’ble Chief Minister

expressed his serious concern and directed all Administrative Secretaries concerned

to complete all formalities as per guidelines of CSSs (such as submission of UCs

etc.) and pursue the matter with the Central Ministries to receive complete central

share under CSSs from the Government of India.

The representatives of all the Departments were directed to achieve their

receipts targets.

[34]

The trend of revenue and capital expenditure during current financial

year 2018-19 with comparison to corresponding period 2017-18 was also reviewed.

These trends are as under:-

B) Expenditure

During 1st half of 2017-18 (April-September), the expenditure was ` 33916.33

crores constituting 35.31% of the Budget Estimates of ` 96048.91 crores. During

2018-19, against the Budget Estimates of ` 102732.54 crores, the expenditure

during 1st half of the year is at ` 37450.28 crores which constitute 36.45%. Thus,

during 1st half of 2018-19, the total expenditure is higher by 1.14% (36.45%-35.31%)

as compared to the corresponding period of 2017-18. During 2017-18 against the

Revised Estimates of ` 93685.52 crores, the total expenditure was ` 88190.16

crores constituting 94.13% of the estimates.

Revenue Expenditure

During the 1st half of 2017-18, the expenditure was ` 30642.81 crores

constituting 38.33% of the Budget Estimates of ` 79935.84 crores. During 2018-19,

against the Budget Estimates of ` 85186.53 crores, the total expenditure during

1st half of the year is ` 32143.35 crores i.e. 37.73% of the estimates. Thus, in ratio

to the Budget Estimates, the expenditure in 1st half of the year of 2018-19 is lower

by 0.60% (37.73%-38.33%) as compared to the corresponding period of 2017-18.

During 2017-18, against the Revised Estimates of ` 78311.30 crores, total

expenditure was ` 73257.36 crores constituting 93.55% of the estimates.

Capital Expenditure:

During the 1st half of 2017-18, the expenditure was ` 3273.52 crores

constituting 20.32% of the Budget Estimates of ` 16113.07 crores. During 2018-19,

against the Budget Estimates of `17546.01 crores, expenditure in 1st half of

the year stood at ` 5306.93 crores i.e. 30.25%, which is higher by 9.93%

(30.25%-20.32%) as compared to the corresponding period of 2017-18. During

2017-18, against the Revised Estimates of ` 15374.22 crores, the capital

expenditure was ` 14932.80 crores constituting 97.13% of the estimates.

[35]

After detailed deliberations, the following decisions were taken in the

meeting:-

1. Hon’ble Chief Minister desired that CM’s announcements should have first

charge on the budget to complete the works within the stipulated time frame. He

directed all the Administrative Secretaries to make all possible efforts to complete all

CM announcements within current fiscal itself.

2. ACS, Finance requested all Administrative Secretaries to ensure that while

submitting the proposal online for release of funds to FD, status of funds released

earlier and UCs may be provided for prudent management of resources. He further

informed that after 15th March 2019, no bills will be accepted by the Finance

Department for clearance/ payment.

3. As substantial amount of funds are lying unutilized with the municipalities,

Hon’ble Chief Minister desired that details of estimated cost of work and fund

allocation by the ULBs Department to all municipalities may be submitted for his

perusal, with a copy to the Finance Department.

4. Women and Child Development Department may constitute a committee to

carry out the audit of the anganwadi centers indicating, interalia, daily attendance of

children alongwith their mothers. A report to this effect may be submitted to Hon’ble

Chief Minister by the Department, with a copy to the Finance Department.

5. Proposals for establishment of new medical colleges be put up by the Medical

Education and Research Department, as per requirement.

6. Possibilities may be explored by the Skill Development Department to run the

skill training centers in the existing building/infrastructure created by the State

Government Departments as well as by the private entities on lease basis, instead of

construction of new buildings for this purpose.

7. Assets Management Company may be constituted to monetize the un-utilized

assets of the State Government Department identified by the Revenue Department.

8. Hon’ble Chief Minister directed all Departments to increase the pace of

implementation of works, especially capital expenditure.

9. Hon’ble Finance Minister pointed out that the rural development cess is not in

harmony with the GST regime and directed the Rural Development Department to

take necessary action in the matter in consultation with Excise and Taxation

Department.

[36]

10. Hon’ble Chief Minister directed the ACS, Industries & Commerce to take

necessary action to recover the ` 500 crores from Delhi Government as its share

toward KMP expressway project.

11. Hon’ble Chief Minister expressed his concern about the drinking water

problems (brackish ground water) being faced in rural areas in different parts of the

State and directed the Departments concerned to explore the possibility to

implement the canal based drinking scheme in these rural area.

The representatives of the Departments were directed to curtail the wasteful

expenditure, increase the capital expenditure.

It was hoped that all the Departments will make their best efforts to enable the

State in containing the Revenue and Fiscal Deficits to the desired levels required

under the FRBM Act, 2005.

A comparative table of corresponding receipts and expenditure of

1st half and 2nd half of 2017-18 and 1st half of 2018-19 against the Revised

Estimates/Budget Estimates of concerned year is annexed at Annexure-1.

[37]

2017-18

(Budget

Estimates)

2017-18

(Revised

Estimates)

2017-18

(Actuals)

%age to

Col. 4

1.4.2017 to

30.09.2017

(Actuals)

%age to

Col. 3

01.10.2017

to

31.03.2018

(Actuals)

%age to

Col. 3

2018-19

(Budget

Estimates)

1.04.2018 to

30.09.2018

(Actuals)

%age to

Col. 11

1 2 3 4 5 6 7 8 9 10 11 12 13

A Revenue Receipts 68810.88 70085.13 62694.87 89.46 29262.12 42.53 33432.75 48.59 76933.02 25440.30 33.07

1 State Tax Revenue 43339.74 44689.74 41099.38 91.97 20850.10 48.11 20249.28 46.72 49131.74 15756.37 32.07

2 State Non-Tax Revenue 10081.72 10984.92 9112.85 82.96 3627.73 35.98 5485.12 54.41 11302.66 3449.35 30.52

3 Share in Central Taxes 8371.78 8371.78 7297.52 87.17 3136.38 37.46 4161.14 49.70 9300.00 3492.75 37.56

4 Grants-in-Aid 7017.64 6038.69 5185.12 85.86 1647.91 23.48 3537.21 50.40 7198.62 2741.83 38.09

B Expenditure 96048.91 93685.52 88190.16 94.13 33916.33 35.31 54273.83 56.51 102732.54 37450.28 36.45

1 Revenue Expenditure 79935.84 78311.30 73257.36 93.55 30642.81 38.33 42614.55 53.31 85186.53 32143.35 37.73

2 Capital Expenditure 16113.07 15374.22 14932.80 97.13 3273.52 20.32 11659.28 72.36 17546.01 5306.93 30.25

Second Half Year First Half Year

Annexure-1

Finance Department Haryana

Half Yearly Review of Trends in Receipts and Expenditure - 2017-18 and 2018-19

(` in crores)

Sr.

No.

Items 2017-18 2018-19

Full Year First Half Year

FRBM TitlefrbmFRBM1FRBM2FRBM3

Documents

BUDGET 2019-20web1.hry.nic.in/budget/frbm.pdfACT, 2005 AND HALF YEARLY REVIEW OF TRENDS IN RECEIPTS AND EXPENDITURE IN RELATION TO BUDGET ESTIMATES 2017-18 & 2018-19 BUDGET 2019-20