Skip to main content

Gujarat's developmental expenditure to grow 2% in 2018-19, non-developmental by 20%: State budget papers

By Rajiv Shah
Gujarat budget papers released by the state government in the assembly on Tuesday suggest that while the “developmental” expenditure for the forthcoming financial year, 2018-19, would rise by just about 2.46% over the previous year, 2017-18, the “non-developmental” expenditure, on the other hand, would grow by a whopping 20.2%.
If the budget papers are any guide, while making allocation for the developmental sector, the government has to set aside funds for such sectors like education, health, water supply and sanitation, welfare of scheduled castes and tribes, labour welfare, nutrition, agriculture and rural development, irrigation and flood control, energy, industry and mines and science and technology.
On the other hand, the funds allocated for non-developmental sector go towards the payment of mainly interest on loans taken by the government, payment of public debts, pension and other retirement benefits, and so on.
Interestingly, developmental expenditure is shown to have grown by a whopping 21.79% in the outgoing financial year, 2017-18 (as against 2.46% in the new financial year). However, even here, in 2017-18, the non-developmental expenditure is expected to rise by an even proportion – 26.69%.
The budget papers further show that the percentage growth in the funds available for developmental expenditure is the lowest in 2018-19 in four years. Thus, while it is estimated to grow by 21.79% in 2017-18, it rose by 4.32% in 2016-17, and 4.84% in 2015-16. This is against 26.69% rise in non-developmental expenditure in 2017-18, 13.38% in 2016-17 and 17.95% in 2015-16.
The sharp deceleration in the growth of developmental expenditure comes amidst the Gujarat government’s budgetary papers claiming that they account for 61.06% of the total budget size – Rs 1,11,564.97 crore out of Rs 1,82,728.16 crore.
Ironically, previous budgetary papers show that the deceleration in the proportion of allocation towards developmental expenditure began with the budget for 2017-18, which was presented in the state assembly a year ago. Thus, the developmental expenditure in 2017-18 is 60.50% of the total budget, almost equal to the budget for 2018-19, but it was 67.60% in 2016-17, 70.42%, 70.42% in 2015-16, and 70.90% in 2014-15.
Notably, the Gujarat government, while calculating the developmental expenditure, does not just include allocation for making the socio-economic sector life of the people more robust than what it has been in Gujarat, considering the state’s poor rating in the social sector.
It seeks to divide developmental expenditure under two heads – revenue and capital. As one financial analyst put it, an expenditure which neither creates assets nor reduces liability is called revenue expenditure”, and includes payment of salaries of employees and subsidies. These expenditures are financed out of revenue receipts, and are considered the first priority.
As for capital expenditure it either creates an asset (e.g., school building) and purchase of land, buildings, machinery, investment in shares, loans by Central government to state government, and so on.
In the state budget for 2018-19, while the revenue expenditure for the developmental sector is put at Rs 82,443.37 crore, on the capital side it is just 29,121.60 crore. Capital expenditure, which would show infrastructure development, physical or social, and is considered necessary for growth, forms only 26.01% of the total Rs 1,11,564.97 crore developmental expenditure.

Comments

Uma Sheth said…
All BJP does is criticise and blame Congress. What about their own governance, or lack of it, notably in Gujarat? I am sure the same thing is going to happen in all the states they rule--just give them a couple of years more.

TRENDING

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

Mental health: India's 95% patients "deprived" of medical care, treatment gap 70%

By Moin Qazi*
Among the many challenges India faces, the most underappreciated is the ongoing mental health crisis. Mental illness is actually India’s ticking bomb. An estimated 56 million Indians suffer from depression, and 38 million from anxiety disorders. For those who suffer from mental illness, life can seem like a terrible prison from which there is no hope of escape; they are left forlorn and abandoned, stigmatized, shunned and misunderstood.

Modi model? "Refusal" to build Narmada's micro canals, keep Kutch dry; help industry

By Medha Patkar*
This is the latest photograph of the Kutch Branch Canal (KBC) of the Sardar Sarovar, as of April 8! What does it show, expose, and what memories do you recall? Is it dry or dead? Is it a canal or a carcass of the same?

Bill Gates "promoting" GMO, Bt cotton, like cartels that have roots in Hitler's Germany

By Our Representative
World-renowned environmental leader and ecologist Dr Vandana Shiva has expressed concern that Bill Gates, founder of Microsoft Corporation, has joined the bandwagon of “a poison cartel of three" – Monsanto and Bayer, Syngenta and ChemChina, Dow and DuPont – all of whom allegedly have “roots in Hitler’s Germany and finding chemicals to kill people”.

Indian talc products contain "contaminated" asbestos structures, can cause cancer: Study

Counterview Desk
A recent study, using polarizing light microscopy, transmission electron microscopy (TEM), electron diffraction, and X-ray analysis on multiple over-the-counter Indian talc products for the presence of asbestos, has concluded that large quantities of body talc products are likely to pose a public health risk for asbestos-related diseases, especially for the cancers related to asbestos exposure.

Why are you silent on discrimination against Dalit jawans? Macwan questions Modi

By Rajiv Shah
Close on the heels of releasing his book in Gujarati, "Bhed Bharat", which lists 319 cases of atrocities against Dalits and Adivasis across the country over the last five years, well-known Gujarat Dalit rights leader Martin Macwan has shot an open letter to Prime Minister Narendra Modi, telling him the reasons why he does not want vote for the BJP.

Emergence of a rare Dalit teacher in IIT-Kanpur "disturbed" certain faculty members

By PS Krishnan, IAS (Retd)*
Dr Subrahmanyam Sadrela, a faculty member in the Department of Aerospace Engineering, Indian Institute of Technology (IIT)-Kanpur since January 1, 2018, and one of the rare Dalit members of the faculty in IIT group of institutions, is facing the threat of revocation of his PhD thesis, and thereby also jeopardizing his job and career.

RTE in remote areas? Govt of India "plans" to close down 2.4 lakh schools

By Srijita Majumder*
The Right to Education (RTE) Act, 2009, came into effect on April 1, 2010, for the first time made it obligatory on the part of the State to provide free and compulsory education to all children from 6-14 years of age in India. The Act, despite its limitations, had progressive elements like neighbourhood schools, community participation, ban on corporal punishment, no detention, continuous and comprehensive evaluation and it hence it appeared that India was not far from achieving universal elementary education.

Investigation shows Narmada downstream "seriously" polluted. Reason: apathy, greed

By Rohit Prajapati, Krishnakant, Swati Desai*
Our investigation regarding quality of water flowing in the Narmada river downstream of the Sardar Sarovar Dam (SSD), dated April 6, 2019, between 11.00 a.m. to 4.00 p.m. reiterates, what is commonly known now, that the Sardar Sarovar Project (SSP) is planned without considering its impact on the downstream Narmada River stretch of 161 kilometres, its ecology, biodiversity and fishery, and lakhs of people living close to and dependent on the river directly or indirectly. This, in turn, has led to its present disastrous state.

Election Commission suffering from worst-ever "credibility crisis": Ex-bureaucrats

Counterview Desk
In an open letter to President Ram Nath Kovind, a group of ex-bureaucrats have lamented ‘weak-kneed’ responses of the Election Commission of India (ECI) in the run up to the 2019 Lok Sabha elections. Citing various violations of the model code of conduct, and pointing towards how ECI has taken little action, the letter asks the President to tell ECI to “conduct itself in a manner where its independence, fairness, impartiality and efficiency are not questioned.”