3 min readChandigarhFeb 7, 2009 03:57 AM IST
First published on: Feb 7, 2009 at 03:57 AM IST
Though its revenue collections have been hit by the economic slowdown,cash-rich Haryana is all set to come up with a poll bonanza for its employees. The Haryana budget for 2009-10 is expected to clear the total liability arising out of Sixth Pay Commission recommendations of Rs 6400 in the coming budget. While Rs 2000 crore will be released till March 31 this year,the provision for the remaining Rs 3400 crore for 36 months starting January 2006 to December 2008 is likely o be made in the budget.
After being on a high-growth course,Haryana is now feeling the heat of the slowdown with its total revenue collections witnessing a dip of nearly Rs 2500 to Rs 3000 crore as per revised estimates (RE). “Though the total revenue collections are still higher by nearly Rs 3000 crore as compared to last year,the economic slowdown has had an impact on Haryana’s purse. The revenue growth rate has plunged from the earlier over 20 per cent to 10 per cent owing to which our total collections have seen a dip of nearly Rs 3000 crore as per revised estimates and Rs 900 crore as per original budget estimates,” Haryana Finance Minister Birender Singh said.
With an ambitious plan size of Rs 10,000 crore for 2009-10 (it was Rs 7130 crore last year),Haryana is trying to beat recessionary blues with high spending on infrastructure. From infrastructure such as roads,bridges,power and irrigation to social sectors such as health and education,the budget may be much bigger than last year in terms of spending.
To make up for the shortfall in targeted revenue and following Centre’s decision to allow more market borrowings to states,Haryana may take recourse to borrowing from the markets in the coming financial year. “As per our credit standing,we can borrow up to Rs 10,000 crore from the markets. So we are trying to clear the entire Sixth Pay Commission liability of Rs 6400 crore over two years. Since Rs 2000 crore would be cleared in the current fiscal,the provision for the rest has been made in the coming budget,” the finance minister added.
While the budget is expected to be high on doles in a poll year,the slowdown-hit state is also looking into hitherto unexplored areas for resources. “Resource mobilisation through items that do not hurt the pockets of the common man are being looked into,” he added.
The state is also trying to prevent leakage of revenue. Haryana has allowed floor-wise registration of residential property in HUDA and private colonies to shore up its declining stamps and registration collections and boost sale and purchase of property. It has relaxed norms for real estate developers to enable them to complete projects.
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