Chandigarh, March 9—Captain Ajay Singh Yadav, Haryana Finance Minister, today presented to the Vidhan Sabha a tax-free budget for 2011-12, making higher allocations for most key sectors of the economy, but keeping the fiscal deficit to 2.61 per cent of Gross State Domestic Product (GSDP), well below the permissible limit of three per cent. The economy of the state is resurgent, its fiscal health sound, revenue as percentage of GSDP is growing, and public debt sustainable. Presenting his second Budget, Capt Yadav said that due to the persistent efforts made by the state government, the economy had started showing signs of resurgence after witnessing stress during 2008-09 and 2009-10. According to quick estimates, the GSDP has grown by 9.9 per cent in real terms in 2009-10; and the per capita income (PCI) is likely to grow by 16.3 per cent to Rs 78,781 at current prices; and by 8.2 per cent at constant prices. Haryana enjoys the highest per capital income among major states in India, and is second only to Goa. The advance estimates show that the GSDP at constant prices for 2010-11 is likely to grow at 9 per cent; and per capita income by 7.2 per cent. “Haryana has the highest PCI among major states of the country. It means the downside risks to growth have receded. This high rate of growth has been possible only due to the enlightened policies and progressive initiatives of this government over the last six years”, Capt Yadav said. Stating that Haryana’s economy had matured by experiencing structural transformation, the Finance Minister said that the contribution of services sector to GSDP stood at 53.5 per cent; industry’s 30.8 per cent and that of agriculture sector 14.9 per cent in 2010-11, whereas in 1966-67, the primary sector contributed 56.6 per cent to GSDP, the secondary sector 20.5 per cent and the tertiary sector 22.9 per cent. The fiscal health of the state is sound and the state government is committed to improving tax administration, maximizing development expenditure and maintaining sustainability of public debt. “As a result of better enforcement, focused tax collection efficiency, continuous review and monitoring, tax revenue as percentage to GSDP which was 6.11 in 2009-10 is expected to increase to 6.73 in 2010-11”,the Finance Minister said. According to Budget Estimates for 2011-12, total receipts (net of public debt) are projected at Rs 39,170.45 crore, of which revenue receipts are Rs 32,018.19 crore, and capital receipts (net of public debt) are Rs 7,152.26 crore. These represent an increase of Rs 6,651.67 crore, Rs 4,421.45 crore and Rs 2,230.22 crore respectively, over the corresponding projections in the Revised Estimates for 2010-11. The total expenditure (excluding repayments) under the Budget Estimates for 2011-12 is projected at Rs 40,276.28 crore, of which revenue expenditure is Rs 34,678.87 crore and capital expenditure Rs 5,597.41 crore. These signify an increase of Rs 3,704.58 crore, Rs 2,623.75 crore and Rs 1,080.83 crore respectively, over the corresponding projections in the Revised Estimates for 2010-11. The Finance Minister said that Haryana was a revenue deficit state up to 2004-05. After the present government assumed office in 2005-06, the state became revenue surplus, and remained so up to 2007-08. But the slow-down and impact of pay/pension revision turned the state revenue-deficit. The Budget Estimates for 2011-12 project a revenue deficit of Rs 2,660.68 crore and fiscal deficit of Rs 8,008.60 crore. The balance from current revenue for 2011-12 is projected at Rs 4,052.69 crore. The fiscal deficit is estimated at 2.61 per cent of GSDP in 2011-12, well within the prescribed limit of 3 per cent. Capt Yadav informed the House that the state Government had allocated Rs 13,200 crore for the Annual Plan 2011-12, about six times higher than the Plan size of Rs 2,306 crore in 2004-05. The actual plan expenditure between 2000 and 2005 was Rs 9,235 crore against Rs 29,713 crore between 2005 and 2010, representing 221.74 per cent growth. An outlay of Rs 2,136.83 crore for the Centrally Sponsored Schemes and other development plan schemes has been included on the Plan side, boosting the composite Plan outlay in the Budget Estimates for 2011-12 at Rs 15,336.83 crore. Not only the State plan spending in absolute terms is going up but its ratio to GSDP has also gone up. The ratio of plan expenditure to GSDP for 2010-11 is likely to be 4.31 per centagainst 2.25 per cent in 2004-05. He said that core inflation remained under check though food inflation was high for some cereals, sugar and pulses in the beginning of the year. The prices have modetated. While the Central Government responded with a mix of monetary, fiscal and trade policy measures, the Haryana Government enhanced the Minimum Wages under MNREGA as well as under the Minimum Wages Act, both of which are the highest in the country, to protect the poor against erosion of their purchasing power. “On the strength and maturity of our economy, we are well aware that the real wealth of the state is our people. The welfare of the common man, the farmers, the workers, the artisans, the poor, the disadvantaged and the downtrodden is directing our policies. We have the will, courage and commitment to realise our vision of a prosperous, inclusive, happy and caring state where all citizens reap the benefits of economic development and feel empowered because we are inspired by the wisdom of our forefathers”, Capt Yadav said. Inclusive and sustainable development remains the unfinished agenda which the state government will continue to pursue not only in the last year of the 11th Plan but also in future plans. In 2011-12, the state wants to move towards greater accountability to the people through new strategies and initiatives. Giving out sectoral allocations, Capt Yadav said that Agriculture and Allied Activities had been allocated Rs 1,529.18 crore; Power Rs 4,962.06 crore; Transport Rs 1,357.02 crore; Irrigation Rs 1,748.48 crore; Public Health Engineering Rs 1,900.31 crore; Urban Development Rs 1695.01 crore; Education, including IT and Technical Education Rs 7,401 crore; Health Rs 1,443.61 crore; Social Justice and Empowerment, including SCs and BCs Rs 2,806.87 crore; and Rural Development and Panchayats Rs 1,104.86 crore. Capt Yadav gave the House, and to the people of the state, the solemn assurance that “We would summon all resources available and dedicate ourselves to the task of taking Haryana forward on the path ofdevelopment at the same pace, and with the same zeal, that we have shown in the last six years”.