Himachal Budget: Focus on education, agri and connectivity
Shimla: A Rs 49,131 crore tax-free Budget for year 2020-21 was presented by Himachal Pradesh Chief Minister Jai Ram Thakur on Friday in the assembly, proposing a series of new initiatives in the education, agriculture and housing sectors, apart from focus on strengthening road and air connectivity in Himachal Pradesh.
For the first time in state's political history, Chief Minister chose to go paperless. He opted to deliver his budget speech digitally instead of using pre-printed 74-page booklet, later circulated to the Ministers, MLAs and media.
In the same spirit, Chief Minister announced that the cabinet will also go paperless on the lines of e-Vidhan facility introduced in the state assembly.
The budget, which left a deficit of Rs 7,272 crore uncovered, estimated the revenue receipts to the tune of Rs 38,429 crores against expenditure of Rs 39,123 crores. The fiscal deficit will be 4 percent of the GSDP.
Chief Minister claimed that as per estimates there is an 11 per cent increase in revenue receipts from the hill state's own sources in 2020-21 compared with budget estimates of 2019-20. But, he did not spell –out measures on resource mobilisations of funds for 25 new schemes, and envisaged to boost development and meet cost of welfare schemes.
In the state, which has debt liability of Rs 55,737 crore, pinned hopes on central funding and externally aided projects, beside effective tax collections but did not apt for any serious resource mobilisation measure.
"I believe that effective tax administration, continued support of the government of India, funding from international funding agencies, and prudent fiscal management will help us fund new and ongoing schemes," he said .
In the budget proposals, Chief Minister said of every Rs 100 spent by the government during 2020-21, Rs 26.66 will go on salaries, Rs 14.79 on pensions, Rs 10.04 on interest payments, Rs 7.29 on loan repayments thus leaving only Rs 41.22 for development and other activities.
Of new schemes proposed, he spoke about bringing about major changes in the education sector through new cluster scheme for elementary schools to modernise infrastructure setup high grade facilities, math labs and virtual class rooms –a model already adopted by Delhi government. He also proposed measures to check malnutrition among children with better mid-day meals.
With aims to increase farmers income, he proposed to promote cultivation of high value crops like Saffron and Heeng (asafoetida) in the high altitude areas of state's tribal belt, creating "Krishi Kosh" (fund) for helping farmers organisations.To promote zero-budget natural farming, the government will bring 20,000 hectares more land under such farming with an outlay of Rs 25 crore.
He informed that during past two years, 50,000 farmers have been covered under natural farming. This number will be doubled in the next fiscal.He also proposed 50% subsidy for the fruit growers for anti-hail nets and building bamboo and steel structures for apple plants.
A committee of MLAs will be constituted to identity all cultivable farm land, which has been abandoned by the farmers either due to migration to urban towns or menace of wild animals.
He announced a scheme--"Mehak" to promote cultivation of aromatic plants and their processing.
The Chief Minister proposed biggest allocation of Rs 1013 crore for expansion of existing airports, 5 new helipods and work on proposed green field international airport at Mandi. He said the matter has been taken up with the Centre to start work on 25 National Highways of total 69 approved by the Centre.
Completion of Rohtang Tunnel –now named as Atal Tunnel will boost tourism in Lahual-Spiti, besides improving all weather connectivity.Water transport will also be introduced soon.
For disaster mitigation, an early warning system will be set up in Kullu valley for early warning about glacial outbursts.
Since hydroelectricity is an important source of state revenue, hydel projects with combined generation capacity of 515 MW are expected to be commissioned in the next fiscal.
The Chief Minister said that the construction of Renukaji Dam Project (40 MW), which will generate electricity for the hill state and quench the thirst of the national capital, will start in 2020-21. It would be built with an outlay of Rs 6,947 crore.
Opposition says budget vision less, lacks focus
Reacting to the budget, Mukesh Agnihotri from Opposition said later that the budget is completely vision less and has no clear agenda on development .
"It looks so-called double engine growth as promised in the elections by the BJP, has got totally grounded as no help has come from the Centre. The Chief Minister's focus is only to make castles in the air without resource mobilisation effort.The debt burden has exceeded Rs 56,000 crore and even next year, the government will survive on loans," he said.
