Thaindian News

Chandigarh, March 9 (IANS) No new taxes have been proposed in the annual budget for 2011-12 presented in the Haryana assembly here Wednesday.

Finance Minister Ajay Singh Yadav said he was making higher allocation for most sectors, including social, health, agriculture and power.

Presenting the tax-free budget, Yadav said that the budget estimates for 2011-12 would leave the state with a fiscal deficit of Rs.8,008.60 crore.

“The fiscal deficit is estimated at 2.61 percent of GSDP (gross state domestic product) in 2011-12, well within the prescribed limit of three percent,” Yadav stated.

He said that Haryana was a revenue deficit state up to 2004-05. After the present government, led by Chief Minister Bhupinder Singh Hooda, assumed office in 2005-06, the state became revenue surplus and remained so up to 2007-08.

“But the slowdown and impact of pay and pension revision turned the state into a revenue-deficit one. 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,” Yadav said.

Yadav said that 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 percent in real terms in 2009-10 and the per capita income (PCI) is likely to grow by 16.3 percent to Rs.78,781 at current prices and by 8.2 percent at constant prices. Haryana enjoys the highest per capita income among major states in India, and is second only to Goa,” he pointed out.

“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,” Yadav added.