Himachal Pradesh’s revenue revenue for the current fiscal year is expected to decline by around Rs 3,000 crore compared to initial budget estimates, mainly due to the pandemic, Chief Minister Jai Ram Thakur informed the Assembly. state during the current budget session on Tuesday.
Under the Himachal Pradesh Budget Management and Fiscal Responsibility Rules, Thakur submitted a review of revenue and expenditure for 2020-21, which said the latest estimates of state revenue for the year are Rs 3,000.94 crore less than budget estimates.
He said that state tax revenue is expected to decline by 1,173 crore and non-tax revenue by 149.4 crore, both due to the adverse effects of the Covid-induced lockdown. Central transfers are expected to decrease by Rs 1,871 crore due to the deficit in share in central tax refund and GST compensation, while grants under centrally sponsored schemes are expected to increase by around Rs 193 crore due to increased revenue for PMGSY, Central Road Fund, etc. .
Revenue spending is also expected to be less than budget estimates because revised salary scales and pensions were not released, according to the review, adding that the fiscal deficit is now expected to be 4.21 percent of the budget. state gross national estimate. Product (GSDP).
Thakur said that despite the pandemic, the state government is committed to keeping the fiscal deficit below five percent of the estimated GSDP. He said the government is trying to reduce “unproductive spending” and has already “compressed wasteful revenue spending in the current financial year.” The CM added that the state’s fiscal policy strategy implies ensuring the dynamism of the state’s own fiscal and non-tax revenues, taking advantage of the resources available with the central government to finance various schemes and programs, resorting to financial resources through projects with outside help and get bigger loans. allowed by the central government during the pandemic.
Chamber approves supplementary budget of Rs 9,125 cr
The Himachal Pradesh Assembly passed a bill to issue an additional sum of over Rs 9,125 crore from the State Consolidated Fund after CM Jai Ram Thakur submitted the supplemental grant demands for the 2020-21 financial year during the budget session ongoing on Tuesday. .
“The supplemental demands for grants add up to Rs 9,125.12 crore of which Rs 8,448.17 crore is under unplanned schemes, Rs 280.84 crore under plan schemes and Rs 396.11 crore under centrally sponsored schemes,” Thakur said.
He also said that the state government took advantage of the Means and Ways Advance facility provided by the Center so as not to increase the burden of its debt.
“Due to the Covid shutdown, the revenue streams of Himachal Road Transport Corporation (HRTC) and HP Tourism Development Corporation (HPTDC) were adversely affected, making the payment of salary / pension obligations of their employees difficult. The government secured the payment of the pledged obligations of both corporations and more than 258 million rupees were provided to HRTC as a grant during the year, ”Thakur said.
He added that additional money was spent for the construction of bridges, the improvement of accident black spots and road safety, the subsidy of reduction of tariffs, the welfare of stray cattle, ambulance services, the holding of elections in the agencies. premises and payment of fees to Anganwari workers and helpers.
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