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

Call to support IIM-Bangalore professor, censured for seeking action against Uniliver

Counterview Desk
Sections of the Indian Institute of Managements (IIMs) across India have strongly reacted to the decision to censure Dr Deepak Malghan, a faulty at IIM-Bangalore. Prabhir Vishnu Poruthiyil, who is faculty at IIM-Tiruchirapalli, has sought wider solidarity with Dr Malghan, saying, "The administration has censured Deepak for merely suggesting a meaningful action against Hindustan Unilever for their abysmal environmental record" by “disinviting” it for campus placement.

Actionable programme for 2019 polls amidst lynch mobs, caste violence, hate mongering

Counterview Desk
Reclaiming the Republic, a civil rights network, has released a document prepared under the chairmanship of Justice AP Shah (retired) -- and backed, among others, by Supreme Court advocate Prashant Bhushan, bureaucrat-turned-human rights activist Harsh Mander, economist Prabhat Patnaik, Right to transparency activist Anjali Bhardwaj and social scientist Yogendra Yadav  (click HERE for full list) -- with the "aim" of putting forth policy and legislative reforms needed to “protect” and “strengthen” the Constitutional safeguards for India’s democratic polity.

Noam Chomsky, top scholars ask NRIs to take stand on human rights violations in India

Counterview Desk
Renowned world scholars, including Noam Chomsky, James Petras, Angela Davis, Fredric Jameson, Bruno Latour, Ilan Pappe, Judith Butler, among others, have issued a statement castigating the Narendra Modi government for allegedly creating an environment of fear through arrests, intimidation and violence.

India under Modi "promoted" crony business, protected financial fraudsters, fueled bigotry

By Sandeep* and Rahul Pandey**
Narendra Modi's ascension to power was accompanied with jubilation and expectation. His supporters were expecting an end to era of corruption and initiation of good governance which was described as Achche Din. His party's adherence to idea of nationalism was believed to make India a vibrant country and guide India to be a world leader. He gave the slogan of 'Sabka Saath, Sabka Vikas' conveying that his government was for all.
Corruption The government system is infested with corruption. A minimum of 10% is siphoned off from government schemes and projects, some of which goes back to political party in power and remaining is pocketed by various administrative, executive and political functionaries. This corruption continues and has increased. Now an additional Rashtriya Swayamsewak Sangh (RSS) person working as Official on Special Duty or some equivalent position in every government department also has a share in this booty.
The Narendra M…

Inviting Rajapaksa to India "insult" to 1,40,000 Tamils killed by Sri Lankan army

Counterview Desk
In the context of Sri Lankan opposition leader Mahinda Rajapaksa being invited in India, about 75 human rights activists*, claiming to be concerned about rights violations during the civil war in Sri Lanka, especially in 2009, have joined together to express their dissent through a statement.

A Godse legacy? BJP rulers have "refrained" from calling Gandhi Father of the Nation

By Dr Hari Desai*
What an agony! On one hand, the entire India is celebrating the 150th birth anniversary of Mahatma Gandhi under the leadership of Prime Minister Narendra Modi, but on the other side, so-called Hindu Mahasabha members have been found mock-enacting the killing of the Mahatma and celebrating the murder by distributing sweets!

No aadhaar, no ration? Hard blow by Gujarat govt on poor and marginalized

By Pankti Jog*
Only those who have aadhaar registration and linked it with ration card will get ration from a Public Distribution System (PDS) shop. This decision of the Gujarat government has hit very badly thousands of poor and marginalized communities of Gujarat, especially during the drought year.

Post-advisory, Govt of India appears reluctant to ban e-cigarettes, "harmful" to kids

By Rajiv Shah
Is the Government of India dilly-dallying over the issue of banning e-cigarettes, which have been declared by anti-tobacco activists across the world as providing “an entryway to nicotine addiction”, especially among the kids? It would seem so, if the latest developments are any guide.

Not just Indian women engineers, men too face sexual harassment at workplace: US study

By Rajiv Shah
A recent research, carried out jointly by two US-based non-profit organizations, Society of Women Engineers (SWE) and Center for WorkLife Law (WLL), based at the University of California, Hastings College of the Law, has found that 45% of women engineers as against 28% of men engineers complained that it was perceived as “inappropriate when women argued at work, even when it was work-related.”

Poser to Modi: Why is Gujarat not fulfilling Constitutional obligations to minorities?

Counterview Desk
In an open letter, Mujahid Nafees, convener, Minority Coordination Committee (MCC), a Gujarat-based civil rights organization, has accused Prime Minister Narendra Modi on infringing upon MCC activists’ constitutional right to protest. Nafees says, they had no other demands except that the Gujarat government should move towards fulfilling the constitutional obligations towards minorities and international treaties to which India is a signatory.