Haryana Budget Analysis 2023-24
The Chief Minister of Haryana, Mr. Manohar Lal Khattar, presented the Budget for the state for the financial year 2023-24 on February 23, 2023.
Budget Highlights
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The Gross State Domestic Product (GSDP) of Haryana for 2023-24 (at current prices) is projected to be about Rs 11.2 lakh crore, amounting to growth of 13% over 2022-23.
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Expenditure (excluding debt repayment) in 2023-24 is estimated to be Rs 1,48,730 crore, an increase of 12% over the revised estimates of 2022-23. In addition, debt of Rs 55,220 crore will be repaid by the state in 2023-24.
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Receipts (excluding borrowings) for 2023-24 are estimated to be Rs 1,15,455 crore, an increase of 15% as compared to the revised estimates of 2022-23 (Rs 99,745 crore). In 2022-23, receipts (excluding borrowings) are estimated to be lower by 11% from the budget estimates (Rs 1,12,585 crore).
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Revenue deficit in 2023-24 is estimated to be 1.5% of GSDP (Rs 16,949 crore). In 2022-23, the revenue deficit is expected to be 1.8% of GSDP which is higher than the budget estimate (1% of GSDP).
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Fiscal deficit for 2023-24 is targeted at 3% of GSDP (Rs 33,274 crore). In 2022-23, fiscal deficit is estimated to be 3.3%, higher than the budget estimate of 3% of GSDP.
Policy Highlights
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Deen Dayal Upadhyay Antyodyay Parivar Suraksha Yojana: The new scheme will provide financial assistance in case of death or disability of a member whose family has an annual income of up to Rs 1.80 lakh based on data verified in Parivar Pehchan Patra database.
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Agriculture: A new scheme will be introduced for farmers to facilitate the adoption of green manuring through dhaincha cultivation. The government will bear 80% of the total cost (Rs 720 per acre) and 20% cost will be contributed by the farmer. Three new centres of excellence for horticultural crops will be established. The Haryana Pashudhan Utthan Mission will be introduced to promote entrepreneurship development in animal husbandry.
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Renewable Energy: A new scheme for installation of grid connected roof top (GCRT) solar power plants in social and community institutions run by the government and non-government organisations will be formulated in 2023-24.
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Manufacturing: The state government will prepare a Toy Manufacturing Policy for electronic toys and a Medical Device Manufacturing Policy for promoting investments in medical devices.
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Haryana’s Economy
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Figure 1 : Growth in GSDP and sectors in Haryana at constant prices (2011-12) Sources: Economic Survey of Haryana 2022-23; PRS. |
Budget Estimates for 2023-24
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Total expenditure (excluding debt repayment) in 2023-24 is targeted at Rs 1,48,730 crore. This is an increase of 12% over the revised estimate of 2022-23. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 1,15,455 crore and net borrowings of Rs 26,620 crore. Total receipts for 2023-24 (other than borrowings) are expected to register an increase of 16% over the revised estimate of 2022-23.
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Revenue deficit in 2023-24 is estimated to be 1.5% of GSDP (Rs 16,949 crore), lower than the revised estimates for 2022-23 (1.8% of GSDP). Fiscal deficit for 2023-24 is targeted at 3% of GSDP (Rs 33,274 crore), which is lower than the revised estimates for 2022-23 (3.3% of GSDP). For 2023-24, the central government has allowed states a fiscal deficit of 3.5% of GSDP (including 0.5% for undertaking power sectors reforms).
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As per the revised estimates of 2022-23, fiscal deficit as % of GSDP (3.3%) is estimated to be higher than the budget estimate (3%). This is within the limit of 4% of GSDP permitted by the central government for that year (of which 0.5% of GSDP becomes available upon undertaking power sector reforms).
Table 1 : Budget 2023-24 - Key figures (in Rs crore)
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Items |
2021-22 Actuals |
2022-23 Budgeted |
2022-23 Revised |
% change from BE 2022-23 to RE 2022-23 |
2023-24 Budgeted |
% change from RE 2022-23 to BE 2023-24 |
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Total Expenditure |
1,35,910 |
1,77,256 |
1,84,808 |
4.3% |
2,03,950 |
10.4% |
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(-) Repayment of debt |
25,473 |
35,052 |
52,336 |
49.3% |
55,220 |
5.5% |
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Net Expenditure (E) |
1,10,437 |
1,42,204 |
1,32,472 |
-6.8% |
1,48,730 |
12.3% |
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Total Receipts |
1,41,158 |
1,67,648 |
1,80,649 |
7.8% |
2,00,295 |
10.9% |
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(-) Borrowings |
55,106 |
55,063 |
80,904 |
46.9% |
84,840 |
4.9% |
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Net Receipts (R) |
86,053 |
1,12,585 |
99,745 |
-11.4% |
1,15,455 |
15.8% |
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Fiscal Deficit (E-R) |
24,384 |
29,618 |
32,727 |
10.5% |
33,274 |
1.7% |
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as % of GSDP |
2.8% |
3.0% |
3.3% |
3.0% |
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Revenue Deficit |
12,940 |
9,774 |
18,005 |
84.2% |
16,949 |
-5.9% |
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as % of GSDP |
1.5% |
1.0% |
1.8% |
1.5% |
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Primary Deficit |
6,022 |
8,624 |
11,738 |
36.1% |
12,024 |
2.4% |
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as % of GSDP |
0.7% |
0.9% |
1.2% |
1.1% |
Note: BE is Budget Estimates; RE is Revised Estimates.
Sources: Haryana Budget Documents 2023-24; PRS.
Expenditure in 2023-24
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State Public Sector Enterprises (SPSEs) The CAG (2022) noted that in 2020-21, 11 SPSEs incurred net losses. These losses increased from Rs 37 crore in 2018-19 to Rs 426 crore in 2020-21 (COVID-19 onset). Of the Rs 426 crore, 84% of the losses can be attributed to Haryana Power Generation Corporation Limited and Haryana Vidyut Prasaran Nigam Limited. |
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Revenue expenditure for 2023-24 is proposed to be Rs 1,26,071 crore, an increase of 10% over the revised estimate of 2022-23. This includes expenditure on salaries, pensions, interest, grants, and subsidies.
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Capital outlay for 2023-24 is proposed to be Rs 18,460 crore, an increase of 26% over the revised estimate of 2022-23. Capital outlay is the expenditure towards creation of assets. In 2022-23, capital outlay is 34% lower compared to the budget estimates. This is on account of underspending in various sectors such as urban development (77%), rural development (68%), and irrigation and flood control (29%).
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In 2023-24, loans and advances given by the state are expected to be Rs 4,198 crore, a 49% increase over 2022-23 revised estimates (Rs 2,819 crore)
Table 2 : Expenditure budget 2023-24 (in Rs crore)
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Items |
2021-22 Actuals |
2022-23 Budgeted |
2022-23 Revised |
% change from BE 2022-23 to RE 2022-23 |
2023-24 Budgeted |
% change from RE 2022-23 to BE 2023-24 |
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Revenue Expenditure |
98,425 |
1,16,199 |
1,15,008 |
-1% |
1,26,071 |
10% |
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Capital Outlay |
11,046 |
22,344 |
14,646 |
-34% |
18,460 |
