Dr. M.S. Kapadia analyses the 2007-08 budgets of Andhra Pradesh, Gujarat,
West Bengal, Himachal Pradesh, Goa and Jammu & Kashmir.
HVDS to minimise T&D losses
The annual plan has been fixed at Rs 30,018 crore for
2007-08, 53 per cent more than the current year's allocation of Rs 19,557 crore.
Irrigation sector has got a major chunk of the plan expenditure at Rs 13,000
crore. An amount of Rs 4,793 crore has been allocated to housing sector to meet
the target of housing for the poor. Rs 2,277 crore for rural development, Rs
1,842 crore for urban development, Rs 1,462 crore for welfare sector and Rs
1,877 crore for infrastructure development are some of the other allocations.
To promote commerce along the coastline, the government has taken up expansion
of 12 non-major ports. Plans are also being prepared to improve cargo handling
capacity from the existing 18 million tonnes to 100 million tonnes by 2012. To
minimise losses in T&D, high voltage distribution system (HVDS) is being set up.
As a result, it is estimated that T&D losses would drop from the current level
of 25 per cent to 10 per cent.
The revenue deficit (RD) worked out to Rs 53.54 crore in revised budget
estimates (RE) for 2006-07, around one-twentieth of Rs 995.95 crore budgeted for
the year, the result of better-than-expected revenue receipt. RD is budgeted to
decline further to Rs 36.48 crore in 2007-08. Fiscal deficit, which declined
from Rs 8,300 crore in 2005-06 to Rs 7,904 crore in 2006-07, is projected to
rise to Rs 8,621 crore due to stepped up plan capex.
New body to speed up hydel projects
The plan outlay for 2007-08 has been fixed at Rs 2,100 crore,
an increase of Rs 300 crore over 2006-07. The focus will be on social sectors.
Irrigation & flood control gets Rs 260 crore, agriculture & allied activities Rs
222 crore, roads & transport sector Rs 278 crore, and power Rs 154 crore.
Himachal Power Generation Company has been formed to speedily execute hydropower
projects, which can yield Rs 5,000 crore non-tax revenue to the government. The
state government has prepared the Rs 1,000-crore World Bank Assistance project
for upgradation of 2,500 km of state highways and district roads. The approval
is likely to be received by May this year.
Revenue deficit worked out much lower to Rs 54 crore in 2006-07 (RE) compared to
BE of Rs 254 crore. In 2007-08, revenue deficit is projected at Rs 250 crore and
fiscal deficit is projected at 4.06 per cent of the SGDP.
NABARD aid for rural roads
The plan size for 2007-08, the first year of the 11th
Five-Year Plan, is fixed at Rs 15,506 crore, an increase of 25 per cent over
2006-07. Irrigation and flood control get Rs 4,754 crore, transportation Rs
1,526 crore and social services Rs 6,265 crore. Sardar Sarovar Yojana, which
will make it possible to irrigate 18 lakh hectares from the Narmada waters by
2010, gets Rs 3,013 crore.
A provision of Rs 76 crore has been proposed under Vikas Path Yojana to
undertake construction of the remaining stretch of 173 km of road passing
through urban areas, Rs 100 crore under Kisan Path Yojana to improve 2,404 km of
road, and Rs 40 crore under Pravasi Path Yojana to improve parts of roads
linking tourist places. Rs 80 crore has been proposed under NABARD assisted
schemes for improvement of roads in rural areas, and Rs 650 crore is provided
for expanding infrastructure facilities in cities through Gujarat Urban
The state is expected to earn a revenue account surplus of Rs 1,803 crore in
2006-07, against a revenue deficit of Rs 399 crore for 2005-06. The revenue
surplus is expected to touch Rs 1,651 crore in 2007-08. Fiscal deficit,
contained at Rs 6,165 crore (Rs 6,270 crore) in 2006-07, is budgeted to decline
to Rs 5,994 crore in 2007-08.
96 new bridges and flyovers on anvil
The state plan outlay will increase by about 22 per cent to
Rs 10,224 crore in 2007-08. The size of the 11th plan will be about Rs 61,785
crore. The plan outlay for the irrigation and waterways department has been
fixed at Rs 415 crore in 2007-08; urban development department gets Rs 958 crore,
panchayats and rural development department Rs 1,422 crore, and municipal
affairs department Rs 800 crore.
Construction of 96 more bridges and flyovers will be taken up during the 11th
plan. The improvement of 4,922 km of road under public works (roads) department
has been completed during the 10th plan and the same on 702 km of roads is in
progress. In addition, the work of improving 3,080 km of road will be taken up
during the 11th plan. Steps have been initiated to install an additional
capacity of 1,945 mw in 2007-08 and a further capacity of 752 mw in the
The West Bengal government has decided not to take any initiative in SEZs until
a socially balanced decision is taken at the national level in the matter.
The ratio of revenue deficit to revenue receipts has been reduced from 91 per
cent in 1999-00 to 31 per cent in 2006-07. The ratio of fiscal deficit to SDP
has been reduced from 9.2 per cent in 1999-2000 to 4.5 per cent in 2006-07.
Development plan for Panjim
The Goa government has taken up various projects such as Goa
broadband network, convention centre, hydel power project, north-south
expressway and MRTS. The government also proposes to take up, in 2007-08, the
erection of 220/33kV, 3x50 mva substation at Cancolim, 220kV transmission line
between Xeldem to Cancolim, and additional 50 mva transformer at 110/33kV
substation at Verna.
Under APDRP, conversion of overhead HT network to underground network will be
taken up at Mapusa, Vasco, Ponda and in the coastal areas. Work on Tillari
irrigation project is expected to be completed by 2009. HUDCO is preparing city
development plan for Panaji, the capital city, under the Jawaharlal Nehru Urban
The indicative growth rate for Goa for the 11th plan is 12.1 per cent with
agriculture growth placed at 7.7 per cent, industry 10.5 per cent and services
9.9 per cent.
Revenue deficit is budgeted to fall to Rs 7.91 crore, from Rs 34.86 crore in
2006-07 (RE). However, fiscal deficit is projected to rise from Rs 688.46 crore
to Rs 752.62 crore.
[26 March 2007]