Haryana capex registered a decrease of ₹4,017 crore in current fiscal - Hindustan Times

Haryana budget 2024-25: Spendings on asset creation, development works decline for second year in a row

By, Chandigarh
Feb 24, 2024 10:14 AM IST

In 2022-23, the state's capital expenditure decreased by ₹7,697 crore despite Khattar proposing a 17% increase for asset creation.

For a second successive year, Haryana’s spendings on creating assets and development works has experienced a decline. The capital expenditure, as per the 2023-24 revised estimates tabled in the state assembly by chief minister Manohar Lal Khattar on Friday, registered a decrease of 4,017 crore compared to what the CM had committed to spend while presenting the 2023-24 budget estimates in the assembly last February. Khattar presented his fifth successive budget on Friday in the state assembly.

Haryana Chief Minister Manohar Lal Khattar presenting budget during the Budget Session at Haryana Vidhan Sabha in Chandigarh on Friday. (Keshav Singh/ HT)
Haryana Chief Minister Manohar Lal Khattar presenting budget during the Budget Session at Haryana Vidhan Sabha in Chandigarh on Friday. (Keshav Singh/ HT)

Capital expenditure is the money spent by the government on creation of long-term assets like infrastructure projects, roads, bridges, educational institutions, health care facilities, and for undertaking development works. The capital expenditure helps boost and sustain economic growth.

Get ready to catch the final stages of the World Cup only on Crickit. Anytime, Anywhere. Explore now!

Capex dip seen in 2022-23 also

The state’s capital expenditure had seen dip of 7,697 crore in 2022-23 financial year even as Khattar, who holds the charge of finance portfolio, had proposed a 17% increase in expenditure for assets creation.

As per the 2024-25 budget estimates presented by the chief minister on Friday, the state government could only spend about 14,442 crore on capital expenditure in the current fiscal as compared to the proposed 18,460 crore in 2023-24 budget estimates. The CM, however, allocated about 16,280 in the 2024-25 budget estimates, an increase of about 1,838 crore as compared to the current year’s capex spendings.

The CM at a post-budget briefing admitted that the state government has been able to spend less on asset creation primarily due to the changes in the processes. “We found that the people were not accustomed to using the engineering works web portal introduced by us. There were loopholes and doubts. Systemic changes often bring shocks. However, we are past that. Our capital expenditure spendings will improve in the coming financial year,” Khattar said in response to a question.

Buoyancy in revenue earnings expected

Despite the fact that 2024-25 outlay of the budget had to be decreased yet again as compared to what was committed in 2023-24 estimates, the chief minister expects buoyancy in revenue earnings.

As per the budget documents, the revenue receipt in 2024-25 budget estimates is expected to register an increase of about 10,851 crore – from 1,05,786 crore in 2023-24 revised estimates to about 1,16,638 crore. However, the revenue expenditure in 2024-25 is also projected to go up by about 15,504 crore – from 1,18,951 crore in 2023-24 revised estimates to 1,34,456 crore. The revenue deficit in 2024-25 is thus estimated at 17,817 crore.

Khattar said that 17,817 crore revenue deficit constituted 1.47 % of the gross state domestic product (GSDP) The state debt liability, as per the budget estimates, is likely to increase to 3,17,982 crore (as on March 31, 2025) from 2,84,863 crore in the current fiscal constituting 26.15 % of the GSDP. Interest payment liability is estimated at 25,141 crore during 2024-25 which accounts for 21.56 % of total revenue receipts (TRR). The expenditure on salary and pension as a ratio to TRR is likely to be 25.33 % and 12.86 % respectively in 2024-25 estimates.

Outlay kept getting reduced in last five years

The CM proposed a total outlay of about 1,89,876 crore which he projected as an 11.37 % increase over the 2023-24 revised estimates of about 1,70,490 crore. However, the fact remained that the actual budget outlay has seen a decline even as the government kept committing a higher outlay in the successive budget estimates presented in the last five years. For instance, the 2020-21 budget estimates promised an outlay of 1,42,343.78 crore but the size was finally reduced to 1,37,738 crore. In 2021-22 budget estimates, the committed outlay was 1,55,645 crore but was decreased to 1,53,384 crore in revised estimates. Similarly, the outlay in 2022-23 budget estimates was promised to be 1,77,255.99 crore but was reduced to 1,64,808 crore in revised estimates. Khattar said at the briefing that when the spendings decrease, the size of the budget also gets decreased in the revised estimates. “The revised budget sees a decrease when the spendings are less. Budget is revised as per the actual position,” the CM said.

Share this article
Story Saved
Live Score
Saved Articles
My Reads
Sign out
New Delhi 0C
Monday, June 24, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On