Budget and Economic Review of Rajasthan
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Budget and Economic Review of Rajasthan
राजस्थान का बजट एवं आर्थिक समीक्षा
State Budget Architecture (Articles 202, 203, 204, 206, Consolidated Fund, Public Account, Contingency Fund), Revenue & Capital Accounts (SOTR, SONTR, Mining Royalties, SGST, VAT on fuels, Capital Outlay), Deficits & Fiscal Health (Revenue Deficit, Fiscal Deficit 3-3.5% limit, Primary Deficit, FRBM Act, Debt to GSDP ratio), Sectoral Allocations (Social Services 45-48%, Energy 13-15%, Agriculture 6-8%, Transport 5-7%, Irrigation 3-5%), 15th Finance Commission Devolution (6.026% share, 15% Area weight, Local Body Grants), Economic Review 2023-24 Findings (GSDP Rs 15.70L Cr current / Rs 8.24L Cr constant, Real Growth 5.79%, PCI Rs 1,56,149 current / Rs 86,134 constant, WPI base 1999-2000, CPI-IW base 2016 Jaipur-Alwar-Bhilwara), Major Policies & Projects (Modified PKH-ERCP link, Bhadla Solar Park 2,245 MW, PM-KUSUM, Lakhpati Didi, HRRL Pachpadra, RIPS-2022, MLUPY, MSME Policy 2022, Tourism Industry status, Ayushman Arogya).
Budget and Economic Review of Rajasthan (राजस्थान का बजट एवं आर्थिक समीक्षा)
Introductory Context and Official Document Metadata#
- **Economic Review Coverage:** Financial Year 2023-24 (Survey year: 2023-24; Comparative baseline: 2022-23 and constant base year 2011-12).
- **State Budget Baseline:** Financial Year 2024-25 (Revised Estimates 2023-24 RE and Budget Estimates 2024-25 BE).
- **Primary Document Sources:** Official 'Economic Review' published by the Directorate of Economics and Statistics (DES, Planning Department, Rajasthan) and official 'Budget Study and Annual Financial Statement' presented by the Finance Department, Government of Rajasthan.
- **Classification of Estimates:** Actuals (audited final figures), RE (Revised Estimates), and BE (Budget Estimates).
1. Constitutional Architecture and Legislative Budget Process#
Constitutional Provisions#
- **Article 202:** Annual Financial Statement laid before the State Legislature by the Governor for each financial year, presenting the estimated receipts and expenditure of the state.
- **Article 203:** Procedure in Legislature regarding Demands for Grants and voting mechanism.
- **Article 204:** Appropriation Bill, without which no money can be withdrawn from the Consolidated Fund of the State.
- **Article 205:** Supplementary, additional, or excess grants.
- **Article 206:** Votes on account, votes of credit, and exceptional grants.
Three Primary Funds of the State Government#
1. **Consolidated Fund of the State (Article 266(1)):** All revenues received, loans raised, and loan recoveries.
2. **Public Account of the State (Article 266(2)):** Provident funds, judicial deposits, and small savings held in trust by the state.
3. **Contingency Fund of the State (Article 267(2)):** Maintained under the disposal of the Governor for urgent, unforeseen outlays.
2. Revenue and Capital Budget Accounts#
Structural Division of State Budget#
1. **Revenue Account:**
- **Revenue Receipts:** Do not create liabilities or liquidate state assets.
- State's Own Tax Revenue (SOTR): SGST, VAT on petroleum, State Excise, Stamps & Registration, Motor Vehicle Tax, Electricity duty.
- State's Own Non-Tax Revenue (SONTR): Mining royalties, crude oil royalties, interest receipts, and departmental service charges.
- Share in Central Taxes (Devolution pool share: 6.026% under 15th FC).
- Grants-in-Aid from the Union Government.
- **Revenue Expenditure:** Regular administrative expenditures, public employee salaries, pensions, debt interest servicing, maintenance outlays, and social welfare subsidies.
2. **Capital Account:**
- **Capital Receipts:** Create public liabilities (market borrowings, central loans) or reduce capital assets (loan recoveries, disinvestment proceeds).
- **Capital Expenditure (Capital Outlay):** Formation of durable physical and social infrastructure including highways, bridges, irrigation dams, schools, medical colleges, power grids, and drinking water pipelines.
1. **Revenue Deficit (RD):**
$$\text{RD} = \text{Revenue Expenditure} - \text{Revenue Receipts}$$
Measures reliance on borrowed capital to finance recurring administrative consumption.
2. **Fiscal Deficit (FD):**
$$\text{FD} = \text{Total Expenditure} - (\text{Revenue Receipts} + \text{Non-debt Capital Receipts})$$
Reflects the gross borrowing requirement of the state government.
3. **Primary Deficit (PD):**
$$\text{PD} = \text{Fiscal Deficit} - \text{Interest Payments}$$
Isolates the current-year fiscal policy impact by excluding legacy debt servicing obligations.
FRBM Act and 15th Finance Commission Benchmarks#
- **Fiscal Deficit Ceiling:** Baseline statutory limit of **3.0% of GSDP**, with up to **0.5% additional flexibility** (up to **3.5% of GSDP**) contingent on power sector operational reforms.
- **Revenue Deficit Target:** Statutory mandate to achieve a Revenue Surplus.
- **Debt-to-GSDP Ratio:** Rajasthan's debt stock hovers around **36% to 39% of GSDP**, against the long-term recommended trajectory of 20%.
4. Key Macroeconomic Aggregates from Economic Review#
Gross State Domestic Product (GSDP)#
- **GSDP at Current Prices (2023-24 AE):** ₹ 15,70,053 crore (₹ 15.70 lakh crore), nominal growth rate: 11.04%.
- **GSDP at Constant (2011-12) Prices (2023-24 AE):** ₹ 8,24,723 crore (₹ 8.24 lakh crore), real growth rate: 5.79%.
- **Net State Domestic Product (NSDP 2023-24 AE):**
- Current Prices: ₹ 14,07,314 crore.
- Constant Prices: ₹ 7,33,017 crore.
Gross State Value Added (GSVA) Sectoral Shares#
- **GSVA at Current Prices (2023-24 AE):**
- Agriculture: **27.15%**
- Industry: **27.76%**
- Services: **45.09%**
- **GSVA at Constant (2011-12) Prices (2023-24 AE):**
- Agriculture: **27.18%**
- Industry: **27.70%**
- Services: **45.12%**
- **Livestock Preponderance in Agriculture:** Livestock (46.41%) exceeds crop farming (45.94%).
- **Manufacturing Dominance in Industry:** Manufacturing (41.26%) followed by Construction (32.55%).
Per Capita Income (PCI)#
- **At Current Prices:** **₹ 1,56,149** in 2023-24 AE (8.68% growth over ₹ 1,43,678 in 2022-23 RE).
- **At Constant (2011-12) Prices:** **₹ 86,134** in 2023-24 AE (4.64% real growth over ₹ 82,318 in 2022-23 RE).
5. Price Statistics and Commodity Weights#
Wholesale Price Index (WPI - Rajasthan)#
- Base Year: **1999-2000 = 100**.
- Commodity Basket: Total **154 commodities**.
- Weight Distribution:
1. Manufactured Products (69 items): Weight **49.853**
2. Primary Articles (75 items): Weight **33.894**
3. Fuel, Power, Light & Lubricants (10 items): Weight **16.253**
Consumer Price Index for Industrial Workers (CPI-IW)#
- Base Year: **2016 = 100**.
- 3 Centers in Rajasthan: **Jaipur, Alwar, and Bhilwara** (Alwar replaced Ajmer from September 2020 onward).
6. Budget Expenditure Priorities and Committed Liabilities#
Sectoral Allocations#
- **Social and Community Services:** Dominant budgetary outlay (approx. 45% to 48%), encompassing public education, healthcare, drinking water supply, and social security pensions.
- **Power and Energy Sector:** approx. 13% to 15% outlay.
- **Agriculture and Allied Activities:** approx. 6% to 8% outlay.
- **Transport (Roads & Bridges):** approx. 5% to 7% outlay.
- **Irrigation and Flood Control:** approx. 3% to 5% outlay.
Committed Liabilities#
- A substantial portion of state revenue is pre-committed to non-discretionary payments:
1. Salaries and allowances of employees
2. Pension disbursements
3. Interest payments on accumulated debt
- Together, these absorb over 50% of the State's Own Tax Revenue, circumscribing fiscal headroom for capital investments.
Separate Agriculture Budget#
- Introduced in **FY 2022-23**, making Rajasthan a pioneer state in presenting an independent agricultural budget.
- Features 11 core missions including the Rajasthan Micro Irrigation Mission, Organic Farming Mission, and Millets Promotion Mission.
Gender and Green Budgeting#
- **Gender Budgeting:** Instituted in FY 2011-12, categorizing 100% women-specific schemes (Part A) and schemes allocating over 30% benefits to women (Part B).
- **Green Budgeting:** Introduced in FY 2021-22 to isolate and monitor climate and environmental expenditures.
- **Abolition of Plan/Non-Plan Split:** Replaced from FY 2017-18 by the constitutional Revenue and Capital expenditure classification.