Hry gets thrust from double-engine govt, HP feels drag of deficit

CHANDIGARH: Haryana, which has the region’s only double-engine govern - ment, has been able to maintain a good fiscal health, shown by its budget out - lay, sanctioned projects, and the pace of their progress. Even as the opposition accused Manohar Lal Khattar’s BJPJJP alliance government of pushing the state into a debt trap and projected that its borrowing may cross Rs 3 lakh crore, the finance department claimed the figure to be within the prescribed limit.

A senior official of the finance de - partment said: “Does any company or business run without external finan - cial support? The loans are managed for repayment without impacting the common man. Today, we have an im - pressive per-capita income.” Besides starting the work on national and state highways, Haryana has also won sanc - tions for an All-India Institute of Medi - cal Sciences (AIIMS) at Rewari, besides completing some civil airports.

As his BJP government completed nine years, Khattar claimed to have fo - cused on economic growth and indus - trial expansion beyond the National Capital Region, besides extending the Yamunanagar thermal power plant. The state’s exports have gone from Rs 68,032 crore in 2014 to more than Rs 2.45 lakh crore in the fiscal 2022-23. Its health, education, industrial, and in - frastructural sectors have also grown with help from the foreign coopera - tion department.

Taking advantage of the BJP’s holding the Centre, Hary - ana won several projects and schemes easier than neighbouring Punjab and Himachal Pradesh. Sukhvinder Singh Sukhu’s Con - gress government in Himachal Pradesh is trying to lift the state’s economy by fiscal management and all-round eco - nomic development. Its medium-term fiscal strategy is to increase the finan - cial resources.

The state’s latest budget reflected an expected revenue deficit of Rs 6,072.94 crore, Rs 1,368.81 crore higher than the estimates. The finance department’s compli - ance report tabled in the assembly suggests that the expected fiscal deficit to be Rs 12,515.73 crore against the es - timates of Rs 9,900.14 crore. The fiscal deficit in percentage of the gross state domestic product (GSDP) is expected to be 5.82%. By this report, the govern - ment’s medium-term fiscal strategy in - volves bringing buoyancy to the state’s own tax and non-tax receipts, besides tapping the central resources for fi - nancing development schemes.

Sukhu might also build financial resources through externally aided projects and use the central debt prudently by cut - ting unproductive costs. The expected tax revenue will decrease by Rs 752.33 crore, due to a drop in receipts from the SGST and lower water cess receipts. Non-tax revenue is expected to remain at the budget level. The pension expense is likely to increase by Rs 621.22 crore due to the payment of arrear and re - tirement benefits.