Haryana

• 28 Jan 2025

NITI Aayog’s Fiscal Health Index

Why in News? 

NITI Aayog’s Fiscal Health Index (FHI) 2025 report ranked Haryana 14th, placing it among the bottom five of 18 major states.  

• The ranking considers five parameters: quality of expenditure, revenue mobilisation, fiscal prudence, debt index, and debt sustainability. 

 Key Points 

• Scope of FHI: 
  • The index covers 18 major states contributing significantly to India’s Gross Domestic Product (GDP), demography, public expenditure, revenues, and fiscal stability. 
  • It evaluates fiscal performance over the period from 2014-15 to 2022-23. 
• Haryana’s Performance:  
  • Debt Profile and Concerns: 
    • Haryana’s debt-to-GSDP ratio rose from 26% in 2018-19 to 33% in 2020-21, stabilising at 31% in 2022-23. 
    • Interest payments grew by 9.4% in 2022-23, with the interest payment-to-revenue receipt ratio at 23%. 
    • Haryana ranked 15^th on the Debt Index parameter, ahead of only Kerala, West Bengal, and Punjab. 
• Revenue and Fiscal Deficits: 
  • Haryana’s revenue deficit stood at 1.7% of GSDP in 2022-23, failing to meet the 15^th Finance Commission’s recommendations. 
  • Fiscal deficits from 2017-18 to 2021-22 were primarily financed through public debt, including market borrowings and loans from the Central government. 
• Quality of Expenditure: 
  • Haryana ranked 16^th in quality of expenditure, with a score of 24.8, ahead of only Punjab and Kerala. 
  • Capital expenditure growth compared to GSDP has declined since 2018-19, constituting just 1.4% of GSDP in 2022-23, below budget estimates. 
  • Capital expenditure as a share of total expenditure fell from 16.4% in 2018-19 to 9.7% in 2022-23. 
• Recommendations for Haryana: 
  • Increase capital expenditure on social services. 
  • Enhance tax collection efficiency. 
  • Establish a robust fiscal management framework, focusing on debt sustainability. 
  • Broaden the revenue base and rationalise expenditures to improve short- and medium-term fiscal sustainability. 

Mukhyamantri Gramin Awas Yojana 2.0

Why in News? 

The Haryana Government allotted plots to 4,533 beneficiaries across 20 districts through a draw under the Mukhyamantri Gramin Awas Yojana 2.0. 

 Key Points 

• Residential Plots Allotted in the First Phase: 
  • 100 square yards plots were allotted to all eligible applicants in the gram panchayats of 20 districts: 
    • Ambala, Bhiwani, Charkhi Dadri, Fatehabad, Gurugram, Hisar, Jhajjar, Jind, Kaithal, Karnal, Kurukshetra, Narnaul, Nuh, Palwal, Panipat, Rewari, Rohtak, Sirsa, Sonipat, and Yamunanagar. 
  • Eligible applicants from nomadic caste, widow, and Scheduled Castes in Jind, Kaithal, Karnal, Kurukshetra, Panipat, Bhiwani, Fatehabad, Rohtak, and Hisar districts also received plots of 100 square yards. 
  • 50-square-yard plots were allotted to eligible applicants in Mahagram Panchayat Bahal. 
• Method of Allocation: 
  • The residential plots were allotted to eligible beneficiaries through a draw system, ensuring a transparent and fair process.