Pre-Budget Consultation Highlights Haryana's Economic Contributions

The meeting chaired by Nirmala Sitharaman discussed Haryana's GDP share and GST contributions, with calls for increased central aid.

The Pre-Budget Consultation Meeting with Finance Ministers of all States and Union Territories was held in New Delhi on Saturday. It was chaired by Union Finance Minister Smt. Nirmala Sitharaman. Haryana Finance Minister, Sh. Jay Parkash Dalal, also attended the meeting.

Sh. Jay Parkash Dalal stated that Haryana is a small state with 2.09 percent of India's population and 1.34 percent of its geographical area. Yet, Haryana's share in the All India Gross Domestic Product is 3.7 percent in 2023-24. Haryana contributes about 6 percent to the total GST collection.

Sh. JP Dalal said that the State Government has taken several steps to enhance social security cover in the State. The Old Age Samman Allowance and related pensions have been increased to Rs. 3000 per month, which is the highest in the country. The number of beneficiaries has also been increased to about 32 lakhs.

The budget provision for various social security pensions has been increased to about Rs. 12,000 crores, which is 6.30 percent of the total budget for the year 2024-25. He informed that the Government of India had released a grant of Rs. 250 crores in November 2022 for the years 2021-22 and 2022-23.

This grant is 2.83 percent of the total expenditure incurred by the State Government on social security pension schemes amounting to Rs. 8821.16 crores during the year 2022-23. He suggested that the Government of India may either increase the rate of financial assistance under these schemes or share the State's burden.

Sh. JP Dalal said that Haryana is an integral part of the NCR as 57 percent of the State's geographical area falls in the NCR. At present, substantial resources are being spent from the State's limited resources to meet infrastructure, water supply, sanitation, urban development, and connectivity needs of NCR.

The Haryana Government ensures adequate water supply to Delhi as per norms. Besides this, the State has to spend extra to control pollution levels and declining water tables due to rapid urbanization in its NCR areas. For this, the State Government demands additional allocation of grant-in-aid for NCR.

Sh. JP Dalal said that the Haryana Government has developed the KMP Expressway around Delhi to decongest the NCR region. Work is in progress on the Kundli-Manesar-Palwal Expressway and also on the prestigious project of Haryana Rail Orbital Corridor from Palwal to Sonipat at a revised cost of Rs. 11,600 crores.

An Integrated Multi-Modal Logistics Hub at Narnaul in an area of 1000 acres, India International Horticulture Market at Ganaur in Sonipat, and Delhi-Panipat Fast Rail Corridor as a Regional Rapid Transit System are other major projects being implemented in NCR.

Therefore, he suggested that the Government of India may consider providing special grant-in-aid to Haryana for implementing these major projects in NCR.

He said that the Special Assistance to States for Capital Investment Scheme should be continued in future as it encourages States to take up infrastructure projects.

He suggested that allocation to the State under this scheme may be enhanced either based on Haryana's contribution of about 6 percent to GST collection or its 3.7 percent share in National GDP in 2023-24.

He assured that the Government of Haryana will make all efforts to collaborate with the Government of India to realize a developed India and improve Ease of Living.