Haryana Budget: Focus primarily on rural sector, jobs & education

Finance Minister Capt Abhimanyu says BJP govt committed to making sure state gets its share of water after completion of SYL canal

Written by Khushboo Sandhu , Sanjeev Verma | Chandigarh | Published:March 22, 2016 8:31 am
haryana, haryana budget, haryana budget news, haryana 2016 budget, haryana budget 2016, haryana budget this year, haryana budget news, india news Finance Minister Haryana Captain Abhimanyu presents the Budget in Haryana Vidhan Sabha, in Chandigarh on Monday. (Express Photo by Jasbir Malhi)

The Haryana budget for the financial year 2016-’17, presented on Monday by the state finance minister Capt Abhimanyu, focused on the rural sector, increasing job opportunities and giving a boost to education and health sectors.

The budget estimate for the next fiscal increased to Rs 13,494 crore against Rs 11,444 crore in the revised estimate of 2015-’16. Over 13 per cent of the budget was earmarked for agriculture and allied sectors.

Budgetary allocation for schemes like Rashtriya Krishi Vikas Yojana, National Food Security Mission, National Mission on Agriculture Expansion and Technology, National Oilseed and Oil Palm Mission has been increased to Rs 205 crore, an increase of 54 per cent from last year.

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With the Sutlej-Yamuna Link (SYL) canal controversy yet to be resolved, the Haryana government has decided to invest heavily in irrigation; the sector has seen a nearly 21 per cent increase in allocation.

It has proposed to improve the capacity of lift irrigation system at a cost of Rs 143 crore, rehabilitation of 565 water courses for Rs 300 crore, extension, renovation and modernisation of 75 irrigation canals and minors and preparation of District Irrigation Plans under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).

Capt Abhimanyu reiterated the state’s commitment to make sure Haryana’s gets its share of Ravi-Beas water after the completion of the SYL canal.


Over Rs 14,300 crore for has been allocated for education sector. To strengthen the Make in India programme, the government is moving towards vocationalisation of secondary education. Ten vocational trades have been started in 490 government schools.

The budget outlay for Sarv Shiksha Abhiyan has been increased by 20 per cent. Under the Rashtriya Uchchatar Shiksha Abhiyan, a centrally sponsored scheme for funding of state Universities, an outlay of Rs 166 crore has been made, an increase of 988 percent.


To capitalise on the first-ever “Happening Haryana” Global Investors Summit, Capt Abhimanyu, proposed an outlay of around Rs 830 crore for Industries and Mines, which is a 325.1 per cent hike. The minister said that the government planned to promote and support the Khadi and Village Industries, start-ups and MSMEs to provide entrepreneurship opportunities and generate employment in the rural areas.

He said that there was a need to protect and support the traditional industries of the state, incentivise agro-based and food processing industries, open new industries in the hinterland of the state to provide jobs to the youths closer to their homes; and also bring in some new big mother industries in areas like Defence, Railway and Aviation to be able to create new streams of small ancillaries and supporting manufacturing units.


The finance minister said that the government envisioned setting up a medical college in every district. Under the National Health Mission, special focus has been given to Maternal and Child Health. The minister pointed out that Infant Mortality Rate (IMR) has reduced to 33, while Maternal Mortality Rate (MMR) has reduced to 127. Under the scheme of Mukhya Mantri Muft Ilaaj Yojana (MMIY), free secondary level surgeries are being made available at Government Health Institutions.


Capt Abhimanyu said that Hisar Civil Aerodrome will be upgraded to the level of International Airport. In the first phase, the government plans to expand the runway from 4,000 feet to 7,000 feet and renovate the terminal building at a cost of Rs. 50 crore. A consultant has been engaged to develop Hisar as an Integrated Aviation Hub comprising International Airport, International Cargo Airport, Maintenance, Repair and Overhauling (MRO) hub on PPP basis. It is also proposed to upgrade civil aerodrome in Karnal to domestic airport.


To improve public transport, new initiatives like implementation of hand-held electronic ticket issuing machines, RFID passes and installation of GPS system in buses would be being taken up. Haryana has increased the budget allocation for Welfare of Schedules Castes (SCs) and Backward Classes (BCs) for the year 2016-17 by 83 per cent. Capt Abhimanyu said that Deen Dayal Jan Awas Yojana is being implemented in the State. The government has proposed to reduce the AT&C losses in the power sector from 30 percent to 15 percent in 2018-19.

Work would be undertaken to provide 24×7 power supply in rural areas.

Cut in allocation

However, the sectors where the finance minister chose to reduce the budget allocation as compared to last year include education sector where 13.34% of the total budget has been granted as compared to 16.20% granted in the previous year’s budget. Since the social welfare sector was last year allocated 6.69% from the total budget outlay, this year the sector has to remain contended with 6.06% allocation.

Similarly, in last budget the finance minister had allocated 16.20% of the total budget to the education sector but this time it has been reduced to 13.34%. Allocation for Public Health and Engineering Sector was also reduced to 3.16%.

Sops this year

New proposals

* Setting up horticulture university at Karnal.
* Rs 300 crore allocated for “Pradhan mantri Fasal Bima Yojana”
* Health University as a Centre of Excellence at Kutail in District Karnal, the National Cardiovascular Institute in Jhajjar
* New medical colleges at Panchkula, Bhiwani and Jind
* A new All India Institute of Medical Sciences (AIIMS) in Rewari
* AYUSH university
* For ensuring accountability, government has decided to open Personal Ledger Accounts (PLA)
* Under the Mukhyamantri Vivah Shagun Yojana, the grant to girls increased to Rs 41,000
* Enacting Water Supply and Sewerage Act to provide drinking water in rural and urban areas
* Smart Electricity Grid proposed for Gurgaon Tax exemptions
* Reduction on tax on footwear, having MRP of above Rs 500, to 5 per cent and exempt shoe uppers from VAT
* Tax exemption has been proposed on ‘Khal’, ‘Binola’, ‘Besan’ and cotton yarn manufactured in the state. Tax on Vermicelli (Sewian) lowered to 5 per cent
* Reduction in tax to 5 per cent on the sale of electric vehicles.
* To encourage the customers to obtain invoices, the government has proposed to introduce “Submit Bill, Get Prize Scheme”