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    Finance Minister’s Speech

    Honourable Mr. Speaker,

    • I rise with a sense of pride and humility to present the Budget Estimates for the financial year 2010-11 before this august House.I stand with a sense of pride because our Government in its previous tenure performed exceptionally well on all fronts of development. The people of Haryana have appreciated this performance and, in a historic verdict, have returned our Government to power for another tenure.I stand in all humility in view of the tremendous faith our citizens have reposed in our Government. Sir, through this august House, I wish to assure the people of Haryana that this Government will totally dedicate itself to working for their welfare.
    • The world witnessed a severe economic recession in the previous year, which bordered on the worst economic depression the world has seen in recent past. Many financial and corporate bodies were driven to the brink of bankruptcy and millions of people were rendered jobless and homeless. Major economies were seriously threatened. Our country, in fact, is amongst the few nations less affected by the economic slow down. The credit for this goes to the robustness and self dependence of the Indian Economy, as well as the strategic reforms and corrective measures taken in the recent past by the Government of India, under the competent leadership of Dr. Manmohan Singh. There is no doubt, Hon’ble Speaker Sir, that the world will take a long time to recover fully from this crisis. However, clear signs have now appeared that for our National and State economies, the worst may be over and the proverbial light is visible at the end of the tunnel. I am optimistic that the concerted efforts of our Government, with the support of the private sector and the people of Haryana, will be able to bring Haryana back on the path of growth and prosperity.
    • Sir, in times of severe economic recession, Government spending is one of the major tools for arresting downturn. In the wake of the recession, the revenue receipts of the State were adversely affected. There was a significant decline in the growth rate of State tax revenues and collections under Stamp & Registration and Urban Development. Moreover, for the welfare of its employees, the State has fully implemented the pay revision package, which has cast a burden of over Rs.4000 crore during the current year. Despite these strains, the Government has not shied away from its responsibilities, and has actually increased the outlay for Annual Plan 2009-10 from the budgeted figure of Rs. 10,000 crore to Rs. 10,400 crore in the Revised Estimates, which is 46.31% higher than the actual plan expenditure in 2008-09. This reflects the deep commitment of our Government to fight the economic recession with all measures at its disposal and to maintain the pace of development in the State.
    • Our National and State economies are now showing signs of resurgence from the depression. Our country is poised to achieve a growth of over 7% in its G.D.P. in the current year. In fact, the performance of the UPA Government at the Centre, under the visionary guidance of Chairperson Smt. Sonia Gandhi, is so remarkable that in the World Economic Forum, recently held in Switzerland, experts projected that India is likely to emerge as the fastest growing economy in the world in 4 to 5 years. The State tax revenue receipts are also improving and the VAT collections during the latter half of this financial year reflect very positive trends. Therefore, Speaker Sir, I am optimistic that Haryana is now emerging from the clutches of economic recession and our Government shall strive hard to take it further on the path of growth.

    STATE ECONOMY

    • During the financial year 2008-09, the State economy witnessed a very healthy growth of 18.4% in the Gross State Domestic Product (GSDP) over the previous year at current prices. At constant prices, with base year 1999-2000, the growth in GSDP in 2008-09 is 7.9%. The Primary sector contribution to GSDP stands at 19.8% in 2008-09, whereas that from the Secondary and Tertiary sectors stands respectively at 28.8% and 51.4%. The sectoral analysis reveals that, at constant (1999-2000) prices, the contribution of the Primary Sector to Gross State Domestic Product has registered an increase of 3.5 percent, while that of the Secondary Sector increased by 5.4 percent, and that of the Tertiary Sector recorded a growth of 11.2 percent. The declining share of the Primary Sector in GSDP, and the increasing share of the Secondary as well as Tertiary Sector indicate a maturing of our economy, and its growth in the right direction. As per advance estimates, the GSDP at current prices for 2009-10 is likely to grow by 14.7%, while at constant (1999-2000) prices, the expected growth is 8.1%.
    • The per capita income of Haryana at current prices increased by 16.8% from Rs.59,008 in 2007-08, to Rs.68,914 in 2008-09. At constant prices, it increased by 6.2% from Rs. 39,462 in 2007-08 to Rs.41,896 in 2008-09. During the current year, it is likely to grow further by 13% to Rs.77,878 at current prices, and by 6.2% to Rs.44,493 at constant prices. Haryana has the second highest per capita income amongst the States in India, being second only to Goa.
    • It is a matter of great pride for all Haryanavis that Haryana has the highest per capita income among the major States in the country. However, our State has suffered a disadvantage on this account in the report of the Thirteenth Finance Commission (TFC). The TFC has used the per capita income of Haryana as the yardstick to measure a criteria called “Fiscal Capacity Distance”, in its formula for horizontal distribution of central taxes amongst states. This criteria has been assigned the maximum weight of 47.5%, while the other criteria namely, population, area and fiscal discipline have been assigned weights of 25%, 10% and 17.5% respectively. Thus, due to this unique position, the share of Haryana in shareable pool of Central taxes has marginally come down from 1.075% to 1.048%. However, the total devolutions to Haryana under the 13th Finance Commission’s recommendations are Rs.19,470.30 crore as compared to devolutions of Rs.8,040.44 crore during the 12th Finance Commission period. I congratulate the Union Government on increasing the size of the divisible pool of the Central taxes from 30.5% to 32%.

    NEW INITIATIVES

    • It is estimated that, in order to sustain a growth of 8 to 9 percent in the national economy, an investment of nearly Rs.23 lakh crore is required on improvement of infrastructure during the 11the Five Year Plan. Investments of a similar order of magnitude would naturally be required in the State. You would agree, Sir, that this magnitude of investment is not feasible from the budgetary sources of the government alone. Our Government is, therefore, keen on involving the Voluntary, Non Government and Private sectors in our development process. We believe the participatory mode of development to be the best for our State and our society, and this is reflected sharply in our new initiatives which I will now outline before this august Assembly.

    Policy for Non Government Organizations and Voluntary Sector

    • Our Government recognizes that the Voluntary and NGO sectors can work as effective instruments of inclusive development, by helping with proper identification of beneficiaries, reduction of delivery costs, flexibility and simplicity of approach, and greater community participation in formulation of new schemes. As a logical extension of Decentralized Planning, we propose to formulate a policy for engaging the Voluntary and NGO sectors as development partners for the State. The policy would provide a framework for assisting such organizations through three instruments of partnership, namely, Consultation – through a formal process at the District and State level; Strategic Collaboration – to tackle complex interventions; and Project Funding. The project administration would be on the decentralized pattern recommended by the Planning Commission in the National Policy on the Voluntary Sector, and Mother NGO’s will be involved to select, train, fund and concurrently monitor field projects being implemented by field NGO’s on behalf of the Administrative Departments. This would bring in greater responsibility, transparency and accountability to our social sector projects.

    Policy for Public Private Partnership Projects

    • In the complex current economic scenario, adequate development of social and physical infrastructure, which are pre-requisites for sustainable economic growth, can only come from pooling of all available resources – from government, non-government as well as private sectors. Therefore, the Public Private Partnership (PPP) mode of development assumes great significance. We propose to formulate a comprehensive policy on PPP projects in order to create an enabling environment in the State for facilitating private sector participation in improvement of the physical and social infrastructure. We intend to extend the PPP approach even to niche areas such as providing tertiary level health care at affordable cost to our population.

    Haryana Infrastructure Development Board

    • Providing a framework for fast track implementation of the PPP projects is necessary to fully reap the benefits of the major investments we hope to initiate through the policy on PPP. We propose to do so by setting up Haryana Infrastructure Development Board, which would act as a nodal agency for conceptualization, financing, implementation, maintenance and operation of PPP projects in the State and also as a special purpose vehicle to take up major infrastructure projects funded out of State resources and other levies and charges.

    East-West and North-South Expressway Corridors

    • Sir, our Government has the grand vision to spread the benefits of economic development to the remotest corners of Haryana. We propose to open up the hinterland by providing easy access by building an East West and a North South expressway corridor through the State. The project, likely to cost around Rs.2000 crore, will be in the PPP mode with a mixed model of BOT(Toll) and BOT(Annuity). The interior areas along the corridors will open up for industrial, commercial, estate development and allied activities, thereby creating enormous opportunities for growth and employment.

    Haryana Metro

    • The proximity to Delhi is a unique advantage for Haryana, and our State territories constitute a large part of the National Capital Region. To fully exploit this advantage, we intend to set up Metro rail links connecting our bordering cities with Delhi. The 7.05 km long Gurgaon Delhi Metro link is near completion. We propose to extend this to Manesar and also provide a high speed link to the Indira Gandhi International airport. Sikanderpur station is going to be connected via a 100% private Metro link to NH 8 by M/s Rapid Metro Rail, Gurgaon Ltd. Delhi metro is to be extended to Faridabad through a 13.87 km link. The project for linking Bahadurgarh to the Mundka border of Delhi is under process. At present, the various metro projects of Haryana are being implemented by the Delhi Metro Rail Corporation, which is a joint venture company of the Government of Delhi and the Government of India. For speedy and efficient implementation of our Metro projects, we propose to set up a joint venture company with the Government of Haryana holding a majority equity share, as has been done by the States of Karnataka and Tamil Nadu.

    Rajiv Gandhi Urban Development Mission, Haryana

    • The population of our cities has been steadily increasing, and there is a growing need for holistic development of the urban areas with focus on improvement in infrastructure, efficient service delivery mechanisms, community participation and transparency. The Government proposes to launch Rajiv Gandhi Urban Development Mission, Haryana (RGUDMH), a state-wide urban infrastructure development program, in all cities of the State excluding those covered under Jawahar Lal Nehru National Urban Renewal Mission. RGUDMH will be funded from the budgetary allocations as well as contributions from the Fund for Development of Major Infrastructure Projects, and will catalyze further investments under PPP mode. I propose to earmark Rs. 2500 crore for RGUDMH over the next five years, beginning with a sum of Rs.500 crore during 2010-11. RGUDMH will focus on the following components: affordable housing for the urban poor, including social and rental housing; in situ slum development in conjunction with the Rajiv Awas Yojna of the Government of India; Water Supply, Storm Water Drainage and Sewerage; integrated Solid Waste Management; and other civic amenities. For 2010-11, RGUDMH will broadly spend Rs.200 crore on projects for water supply and sanitation, Rs.100 crore on affordable housing projects, and the remaining funds will be used for special purpose infrastructure development projects in small and medium towns. The nodal agency for implementation of Rajiv Gandhi Urban Development Mission, Haryana shall be Haryana Urban Infrastructure Development Board which would now be headed by the Hon’ble Chief Minister. There will be a State Level Committee headed by the Chief Secretary for identifying and recommending the projects and overseeing their execution.

    Mahatma Gandhi Swavlamban Pension Scheme

    • Our Government firmly believes that every human being has the right to a dignified old age and has significantly enhanced the old age pension. However, a large section of our working rural and urban population, particularly those working in the informal or unorganized sectors, is vulnerable to old age poverty. We propose to initiate Mahatma Gandhi Swavlamban Pension Scheme for the members of milk cooperatives and cane growers’ cooperatives, wherein each member will contribute Rs.200 per month, the Society/Federation/State Government will co-contribute Rs.100 per month, and the Government of India will co-contribute Rs. 1000 per annum. The contributions will go to a fund managed professionally as per the guidelines of the Pension Fund Regulatory and Development Authority. The fund will provide the worker with a retirement pension to support him in his old age.

    Economic Stimulus Package

    • Hon’ble Members would recall that my predecessor had introduced an Economic Stimulus Package in the last budget to help fight the recessionary trends of the economy. Various works have been initiated under this package, such as up-gradation of district hospitals, setting up of new medical colleges, improvement of water supply and sanitation facilities in urban areas, setting up of special care institutions for the disadvantaged sections of the society, restoration of water courses, housing for the industrial workers and construction of office and residential buildings for the new districts of Mewat and Palwal. Rs.332.56 crore have been released under the stimulus package so far, and I have made an allocation of Rs.713.79 crore for the works under the Stimulus Package for 2010-11.
    • Sir, before I take up sector-wise allocations, let me just highlight a few facts which will put the efforts of our Government in the right perspective. The total plan expenditure during the five years from 2000 to 2005 was only Rs.9,235.41 crore, whereas the plan expenditure for just the current year is going to cross Rs.10,400 crore! In the last five years, our Government spending on the State Plan was 230.13% higher than that of the previous regime. The average annual plan outlay growth rate during 2005-2010 is 37.83% per year, compared to just 4.8% during 2000-2005! This has been made possible by the strong commitment of our Government to development of the State.

    POWER

    • Universal availability of quality power is critical for the economic development of the State, as well as for the comfort of its citizens. Our Government has accorded the highest priority to this sector and we are committed not only to adding adequate generation capacity to achieve the target of making Haryana a power surplus State, but also to upgrading our transmission and distribution systems for maximum efficiency and reliability. Due to the efforts of our Government, Hon’ble Speaker Sir, the average power availability per day in the State, which was only 578 lakh units in 2004-05, has gone up to 907 lakh units in the current year!
    • Tremendous progress is being made in enhancing the power generation capacity of the State. I would like to inform the Hon’ble Members that, in the period from 1999 to 2005, only 704.4 MW was added to the own generation capacity of Haryana, whereas, during the first tenure of our Government from 2005 to 2010, we have already added 1117.8 MW. The first 600 MW Unit of the 1200 MW Rajiv Gandhi Thermal Power Project at Khedar, Hisar has already been synchronized on 29.12.2009 and the second Unit will be ready for commissioning in April, 2010. This will be followed by the first 500 MW Unit of Indira Gandhi Super Thermal Power Station at Jhajjar, in July, 2010 and subsequently the second & third 500 MW Units in December, 2010 and February, 2011 respectively. The first 660 MW Unit of Mahatma Gandhi Super Thermal Power Project at Jhajjar is targeted to be commissioned during December, 2011 and another 660 MW Unit-II will start generating power by May, 2012. For the 2800 MW Nuclear Power Plant to be set up at village Gorakhpur in district Fatehabad, pre-project work has been started by the Nuclear Power Corporation of India Limited for setting up two Units of 700 MW each in the first phase. Sir, you would agree that we are well on our way to double the availability of power in the State by 2011-12.
    • For up-gradation of the transmission network in the State, Rs.3,365.8 crore are being spent to add 25 substations of 66KV and above in 2009-10, and 72 substations in 2010-11. The first 400KV substation of the State has been set up at Kirori. We plan to augment our transformation capacity by 5000MVA during the 11th Plan.
    • Our effort, Sir, is to provide quality power to all citizens. Segregation of the rural domestic and agricultural loads and introduction of High Voltage Distribution System are important steps to improve the quality and efficiency of power supply in the rural areas. Under the Rajiv Gandhi Gramin Vidyutikaran Yojna, 91,347 connections have so far been released to families below poverty line (BPL) this year.
    • I am allocating Rs.4,642.71 crore for this sector during 2010-11 which is 20.06% higher than the allocation for the current year. This includes Rs. 1,670.67 crore on Plan side and Rs.2,972.04 crore on Non-Plan side.

    WATER SUPPLY AND SANITATION

    • Sir, a milestone was achieved in 1992, when drinking water supply facilities were extended to all the villages in the State. However, the approved norm of 40 liters per capita per day (lpcd) could not be achieved in some villages. A comprehensive survey in December, 2004 identified 1971 such villages. Our Government has accorded high priority to augmentation of water supply in these deficient villages, and I am proud to state that water supply in all 1971 deficient villages would stand augmented as per the approved norm by 31st March, 2010. In addition, augmentation of the water supply is being carried out in 950 villages under various schemes during this year.
    • The Rajiv Gandhi Drinking Water Supply Augmentation Project in Mewat will be complete by March 31, 2010, covering 503 villages at a cost of Rs. 205.91 crore. Further augmentation of water supply from 55 lpcd to 70 lpcd in all these villages, with an outlay of Rs.94.58 crore, will commence in 2010-11. Under the Indira Gandhi Drinking Water Scheme, private water connections have been provided to 7.83 lakh Scheduled Caste households.
    • Adequate attention is also being given to improving the water supply and sanitation facilities in the urban areas. Our Government has waived the sewer connection charges for a period of one year from November, 2009 in order to encourage the improvement of sanitary conditions in towns. Second water works based on canal water filtration have been commissioned in Rohtak and Dadri, and sewage treatment plants have been commissioned in Kaithal and Jind, while those in Rohtak, Hodal and Narwana are near completion.
    • In the National Capital Region, water supply projects for 10 towns and sewage system projects for 8 towns are under implementation with support from the NCR Planning Board. This year, sewage system projects in Sonepat and Gohana, and a water supply project in Sonepat have been approved.
    • Under the Economic Stimulus Package, 15 towns have been selected, namely, Ambala City, Bhiwani, Charkhi Dadri, Fatehabad, Hansi, Jullana, Kalayat, Assandh, Kaithal, Mahendergarh, Narnaul, Sirsa, Ellenabad, Tohana and Uchana for 100% coverage of Water Supply and Sewerage facilities. Phase-I of the project, amounting to Rs. 955.71 crore, has recently been approved by the Government.
    • I am allocating Rs.1,297.69 crore for this sector during 2010-11, which includes Rs. 669.48 crore on Plan side and Rs.628.21 crore on Non-Plan side.

    ROAD NETWORK AND PUBLIC WORKS

    • Sir, our Government is committed to improving the road
      network in the State. Up to 31.1.2010 during the current financial year, 3,903 Km. length of roads has been improved at a cost of Rs.1,476 crore under various schemes and projects. A length of approximately 4,100 kms will be widened/strengthened/reconstructed and improved in
      2010-11. Under the Pradhan Mantri Gram Sadak Yojna, which is now a part of Bharat Nirman Scheme, 710 Kms. of rural road have already been improved during the current year at a cost of Rs. 239 crore. The PPP project for improvement of the Gurgaon-Faridabad and Ballabhgarh-Sohna road has already been taken up on BOT (Toll) basis with a negative grant of Rs.150.30 crore. The NCR Planning Board has sanctioned road projects worth Rs.638 crore this year.
    • Steady progress has also been made in the construction of Road Over-bridges. 55 ROB’s have been sanctioned by the Government, 16 ROB’s have been opened to traffic, and 13 more are under construction. To provide further impetus to road infrastructure development, the 2nd phase of the Rajiv Gandhi Bridges & Road Infrastructure Program has been taken up with an increased outlay of Rs. 5000 crore. Work is going on for completion of 75 km length of Rohtak-Jhajjar-Rewari Railway line and 88 km long Sonepat-Jind Railway line. These works, costing Rs. 596 crore, are under execution on 50:50 sharing basis with Indian Railways.
    • During this year, 114 public buildings have been completed at an approximate cost of Rs.215 crore. Work is going on in 700 building works having an approximate cost of Rs.1500 crore. Special attention is being given to maintenance and upkeep of public assets.
    • I am allocating Rs.1,938.95 crore for this sector during 2010-11, which includes Rs.1,311.97 crore on Plan side and Rs. 626.98 crore on Non-Plan side.

    IRRIGATION

    • Speaker Sir, the Department of Irrigation will be completing a number of important projects during the coming financial year. The 70 km long NCR Water Supply Channel for carrying drinking water supply to Gurgaon, Manesar, Bahadurgarh, Sampla and Badli will be completed by June, 2010 at a cost of Rs.322 crore. Kaushalya Dam on the Ghaggar River in Panchkula district will be completed at a cost of Rs. 180 crore. Carrier Lined Channel for the supply of drinking water to Delhi, and the second phase of Shahabad-Dadupur-Nalvi Project will also be completed in the ensuing year. The capacity of Western Jamuna Canal Main Line Lower has been increased from 13,500 cusecs to 19,557 cusecs. Recharge channel for Massani Barrage, deepening of Ottu Lake and Bhindawas Lake are the other projects under implementaion. To alleviate the problem of water scarcity in the backward area of Mewat, a detailed project report is under preparation for construction of the Mewat Canal.
    • Water is an important resource, and we are a water deficit State. The present irrigation water requirement of the State is around 36 million acre feet (MAF), whereas the surface and ground-water availability is merely 14 MAF. The deficient monsoons in the current year and lower levels in the Bhakra Dam and Pong Dam reservoirs did aggravate the problem of low water availability for our State. Our focus, therefore, has to be on saving water losses by all means, and ensuring optimal and equitable deployment of available water resources. During the next year, we propose to undertake construction of 500 new lined water courses and rehabilitation and remodeling of more than 500 minors and distributaries in the State, many of which were constructed more than 20 years ago.
    • I am allocating Rs.1,616.49 crore for this sector during 2010-11,which includes Rs.768.17 crore on Plan side and Rs.848.32 crore on Non-Plan side.

    INDUSTRIES AND COMMERCE

    • Haryana has emerged as a favoured investment destination in northern India for industry, and scores amongst the top States in India on per capita investment performance. Provision of quality infrastructure following the Industrial Model Township (IMT) approach has been a key factor in this performance. Our future plans include expansion of IMT, Manesar, development of an IMT near Roz-ka-Meo and an IMT near Kharkhauda. The projects for development of an IMT at Faridabad, Phase-II of IMT Rohtak, Phase-IV of Growth Centre Bawal, Manakpur, Barhi and Panipat are under process. Establishment of an IMT in district Ambala is also under consideration. The HSIIDC proposes to invest over Rs. 1,200 crore on land acquisition and development of industrial infrastructure during the ensuing year.
    • Delhi-Mumbai Industrial Corridor Project(DMIC) is being developed along the alignment of the Delhi-Mumbai freight corridor. A Multimodal Logistic Hub, an Exhibition-cum-convention Centre and a Mass Rapid Transport system from Gurgaon to Bawal have been identified as the early bird projects under this mega project. Under the Economic stimulus Package, special dispensation is being made for creation of housing stock for industrial workers.
    • To equip our own people to reap the advantage of industrialization, our Government is establishing a number of skill development facilities. These include the National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) at Kundli, Footwear Development and Design Institute at IMT Rohtak, Central Institute for Plastic Engineering and Technology (CIPET) at Murthal, and Indian Institute of Corporate Affairs at IMT Manesar. I am confident that the various steps taken by the Government for development of infrastructure, improved power availability and congenial labour relations, along with a new Industrial Policy, would take the State to new investment horizons.
    • I am allocating Rs.164.06 crore for this sector during 2010-11, which includes Rs. 125.61 crore on Plan side and Rs.38.45 crore on Non-Plan side.

    INFORMATION TECHNOLOGY AND e-GOVERNANCE

    • Alongside the overall industrial investment, Haryana has emerged as a preferred investment destination for the IT Industry as well. Out of a total of 46 SEZ’s that have been formally approved for the State of Haryana, 35 are in the IT Sector. In addition, the State has granted licences to 27 proposals for the establishment of IT/Cyber Parks. Software exports from Haryana have exceeded Rs.21,000 crore during 2008-09.
    • Our State is among the leaders in the establishment of Information Technology infrastructure under the National e-Governance Plan. The State Wide Area Network has already been set up. The State Data Centre is going to be established in the ensuing year. We are taking concrete steps to leverage the use of information and communication technology in governance. Major e-Governance projects are under implementation in the Food and Supplies Department, Transport Department, Commercial Taxes Department and Treasuries. We propose to create a cadre of IT professionals in the State for smooth implementation and sustenance of e-Governance initiatives in the State.
    • I am allocating Rs.19.59 crore for this sector during 2010-11, which includes Rs. 19.35 crore on Plan side and Rs.0.24 crore on Non-Plan side. There will be substantial additional investment by the line departments on their individual e-governance initiatives.

    TRANSPORT

    • The vision of our Government is to make Haryana a model State with fast, equitable and inclusive development. Therefore, we lay as much emphasis on improving citizen services across the State as we do on creation and up-gradation of infrastructure for economic growth. In order to provide reliable, safe and efficient passenger transport services to each and every village in the State, a comprehensive passenger transport policy is being formulated. The policy aims at setting up a state-wide network of bus services, comprising both private service operators and Haryana Roadways. To promote road safety in the State, Institutes of Driving Training and Traffic Research are being established in collaboration with auto majors such as Maruti Suzuki, Ashok Leyland and Tata Motors at Rohtak, Kaithal and Bahadurgarh.
    • To meet the needs of our citizens, our Government intends to increase the total fleet strength of Haryana Roadways to 4500 buses by the end of the 11th Plan period. Special attention is being paid to inter-city transportation and a City Bus Service is proposed to be setup under PPP mode in Gurgaon. The Faridabad-Gurgaon-Delhi bus service has recently been started under JNNURM. We also propose to construct Multi-modal Hubs/ Modern Bus Stands under PPP mode at 20 locations in the State.
    • I am allocating Rs.1,142.10 crore for this sector during 2010-11, which includes Rs.92.72 crore on Plan side and Rs.1,049.38 crore on Non-Plan side.

    AGRICULTURE AND ALLIED SECTORS

    • Sir, this sector continues to be the mainstay of livelihood for a majority of our population. The great progress made by our State in this sector is reflected in our food grain production, which has increased six fold from 25.92 lakh tons at the inception of Haryana in 1966-67, to a record 161.66 lakh tons during 2008-09. The weak monsoons this year have led to a marginal reduction in the cultivated area under both Kharif and Rabi crops. However, due to the efforts of our farmers and the Government, there is no reduction in production and we are likely to achieve the target of production of 167.14 lakh tons during the current year.
    • The consumption of fertilizer has touched 14.35 lakh MT and is 11.24% higher than last year’s consumption. However, declining soil health is a matter of concern for us, and micronutrients play an important role in soil fertility. Hence, the Agriculture Department has prepared a new plan scheme for managing micronutrient deficiency, in which 50% subsidy will be provided for micronutrient fertilizer up to a maximum of Rs. 500/- per hectare with a ceiling of 2 hectares per farmer. Various other schemes for restoring soil health and increasing agricultural production will continue in the ensuing year.
    • Keeping in view the interest of the farmers, the State Government has fixed the basic cane price of early, mid & late maturing varieties of sugarcane at Rs.185/-, Rs.180/- and Rs.175/- per quintal, respectively, during the current crushing season which is the highest State Administered Price in the country. In addition, our cooperative sugar mills have given a bonus of Rs.25 per quintal. The Shahabad, Karnal and Panipat sugar mills have further shared their profits with the farmers by giving an additional bonus of Rs.40, Rs.30 and Rs.20 per quintal respectively. To enhance sugarcane production in the State, a Technology Mission on Sugarcane is proposed by our Government for 2010-11. Moreover, the basic cane prices for early, mid and late varieties have been further enhanced respectively to Rs.210/-, 205/- and Rs.200/- per quintal for the crushing season of 2010-11. The bonus will be decided before the crushing season commences.
    • To protect our farmers from the vagaries of nature, a new insurance scheme called Weather Based Crop Insurance Scheme has been conceived to compensate yield loss due to adverse weather conditions. The scheme is being implemented on a pilot basis for wheat crop during Rabi season 2009-10 in Ambala II, Bubain and Tohana blocks.
    • Animal Husbandry and Dairying are an integral part of our agrarian economy, and the Government is fully conscious of its contribution to the prosperity of our farmers. A network of 2,789 Veterinary Institutions caters to the 90.93 lakh strong livestock population of the State. Efforts will be made to open 80 new Veterinary Institutions during 2010-11. One pet animal medical centre-cum-teaching hospital has been set up at Panchkula and super specialty poly clinics have been established at Sonepat and Bhiwani. Another such poly clinic is being setup at Sirsa. The Haryana Dairy Development Cooperative Federation is providing procurement, processing and marketing support to the 5100 dairy cooperatives in the State. Sir, you will be happy to know that farmers are being paid Rs.340 per kg fat for milk at present, whereas they were being paid a mere Rs. 165 per kg fat in 2005.
    • The cooperative movement has played a pivotal role in supporting the agriculture and allied sector in the State. Over 35 thousands Cooperative Societies of different types, having over 57 lakh members, are working in the State. The cooperative credit structure at the grass root level has been restructured by amalgamating 2,441 Primary Credit Cooperative Societies into 620 Primary Agricultural Cooperative Societies. Under the Agriculture Debt Waiver and Debt Relief Scheme of Government of India, loans worth Rs.830.78 Crore have been waived for 2,61,250 small and marginal farmers, while 2,00,734 other farmers have been provided a relief of Rs. 343.16 crore under the scheme.
    • In March 2009, our Government slashed the rate of interest on crop loans from 11% to 7%. The State Government is giving an interst relief of 2% on timely repayment of crop loans, while the Government of India is paying an interest relief of 1%. With these interest subventions, the effective rate of interest on crop loan is now just 4%. For long term non-agricultural loans, the State Government has increased interest subvention from 3% to 5% under the Timely Repayment Incentive Scheme, which has been extended up to 31-12-2010. Moreover, our Government has also modified the provision in the Haryana Cooperative Societies Act, 1984 under which cooperative loans were recovered as arrears of land revenue. Henceforth, no farmer in the State can now be arrested for recovery of cooperative loans. This, Hon’ble Speaker Sir, shows how deeply our Government respects the dignity of our farmers.
    • The State Government has set up the State Compensatory Afforestation Fund Management and Planning Authority (State CAMPA) in accordance with the guidelines of the Government of India. This Fund will be utilized for the protection and management of natural forests and wildlife sanctuaries, compensatory afforestation, environmental services and research and development. Under the Forest (Conservation) Act, 1980, a contribution of Rs.187.43 crore has already been made to this fund by the User agencies against sanctioned proposals.
    • I am allocating Rs.1,073.62 crore for this sector during 2010-11, which includes Rs.540.66 crore on Plan side and Rs.532.96 crore on Non-Plan side.

    RURAL DEVELOPMENT AND PANCHAYATS

    • Our Government will continue its focus on the development of the rural areas. A number of schemes are being implemented, both in the Central and State sectors, for up-gradation of rural infrastructure, employment generation and alleviation of poverty as well as other pressing issues. Under the Mahatma Gandhi National Rural Employment Guarantee Scheme, a sum of Rs.78.49 crore has been utilized up to the end of January, 2010 for generating 39.68 lakh person-days of employment in the rural areas of the State. Assistance of Rs.18.40 crore has been provided to 11,851 swarozgaris under the Swaranjayanti Gram Swarozgar Yojana. To further promote self-employment, Rural Development and Self-employment Training Institutes are being set up in existing ITI campuses in five districts. Under the Indira Awaas Yojana (IAY) Scheme, 15,604 houses have been constructed and 6,309 houses are under construction in the current financial year. Backward Regions Grant Fund scheme is being implemented in Mahendergarh and Sirsa districts to bridge critical gaps in village infrastructure and facilities.
    • Our Government is providing free residential plots of 100 sq.yard each to eligible Scheduled Caste, Backward Class (A) and Below Poverty Line families in planned and developed lots under the Mahatma Gandhi Gramin Basti Yojna. Out of 6 lakh identified eligible families, 2.91 lakh families have been allotted plots in the first phase in villages where panchayat land was available. The remaining villages will be covered in the second phase. Villages having more than 50% SC population are being provided basic infrastructure under the Mukhya Mantri Anusuchit Jaati Nirmal Basti Yojna. In the first phase, Rs.117.85 crore have been released for taking up 442 works in 391 villages. Mukhya Mantri Sanitation Incentive Puraskar Yojna has been launched to provide incentive to panchayats for improving cleanliness and eradicating the practice of open defecation in the villages.
    • I am allocating Rs.956.17 crore for this sector during 2010-11 which is 7.09 % higher than the allocation for the current year. This includes Rs.613.54 crore on Plan side and Rs.342.63 crore on Non-Plan side.

    URBAN DEVELOPMENT

    • Sir, I have already mentioned the great importance that our Government gives to the improvement of infrastructure and facilities in urban areas. The financial position of many of the urban local bodies is weak, and the economic slowdown has further affected their finances. In order to provide a steady source of income to our local self government entities, I propose to impose a small surcharge on VAT in the State. Out of the collections under the surcharge, 80% will be given to Urban Local Bodies and 20% will be given to Village Panchayats. This will help these local bodies take up new development projects in their areas on a sustained basis.
    • City Development Plans (CDP) of 73 towns have been prepared to map their basic infrastructure gaps and needs. Under the Jawaharlal Nehru Urban Renewal Mission (JNNURM) of the Government of India, Rs.823.33 crore have been sanctioned for 7 projects for Municipal Corporation, Faridabad. Now Panchkula has also been included under JNNURM and its CDP is under consideration of the Government of India. Under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), new projects for Integrated Solid Waste Management at Rohtak, Karnal, Indri, Yamunanagar & Jagadari and projects for Sewerage System & Sewerage Treatment Plant at Bahadurgarh Phase-I and II, Ambala Sadar, Narnaul and Charkhi Dadri have been sanctioned for Rs.164.07 crore. Under the Integrated Housing and Slum Development Program, 16,608 dwelling units are being constructed for slum dwellers.
    • To ease the mounting pressure on infrastructure in the mega cities like Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Bangalore and Ahmedabad, the Government of India has launched a centrally sponsored scheme called Urban Infrastructure Development in Satellite Towns. The scheme aims at developing satellite towns near the mega cities as counter magnets by upgrading urban infrastructure facilities such as transport, drinking water, sewerage, drainage and solid waste management. The Government of India will bear 80% of the cost of the scheme, while the balance will be equally shared by the State and the urban local body. The scheme will be implemented in Sonepat town for which a provision of Rs.100 crore is proposed for 2010-11.
    • I am allocating Rs.1,447.14 crore for this sector during 2010-11 which is 26.50 % higher than the allocation for the current year. This includes Rs.1,324.83 crore on Plan side and Rs.122.31 crore on
      Non-Plan side.

    SCHOOL AND HIGHER EDUCATION

    • Education is the cornerstone of development, and our insurance for the future of the State. Its critical importance and centrality to human resource development cannot be over-emphasized. Speaker Sir, this Government is committed to making education universally accessible and inclusive for all sections of the society. The Hon’ble Members would be happy to know that now, in Haryana, a primary school is available to a child within a radius of 1.03 km, a middle school within 1.07 km, a high school within 1.52 km and a senior secondary school within 2.28 km. This Government has upgraded 21 Middle Schools to High Schools and 53 High Schools to Senior Secondary Schools. Our seriousness in this sector can be gauged from the fact that the total budget of the education department, which was Rs.1,733.18 crore in 2004-05, has gone up to Rs.5,331.35 crore in Revised Estimates 2009-10.
    • We do realize that creation of infrastructure, though necessary, is by no means sufficient for quality education. A number of schemes are being run by the State and the Centre to attract children to schools and to retain them. These include the Mid-day Meal Scheme, the Rajiv Gandhi Scholarship Scheme and other scholarship schemes, Monthly Incentive Schemes, Cash Awards Scheme and others. The Sarva Shiksha Abhiyan (SSA), implemented in financial partnership with the Central Government, has been instrumental in improving the quality of elementary education by provision of teachers, opening of schools and alternate school facilities, quality improvement programs and creation and improvement of infrastructure. Following the success of SSA, with the intention of making quality secondary education available, accessible and affordable to all young persons in the age groups 14-16 years, the Government of India has launched the Rashtriya Madhyamik Shiksha Abhiyan. The RMSA is funded by the Centre and State Governments in the ratio of 75:25, and provides for various improvement schemes on the pattern of Sarv Shiksha Abhiyan.
    • To improve female literacy, the Saakshar Bharat Scheme of the Government of India has been launched in Karnal district this year. The scheme will subsequently be extended to 9 more districts having 50% or less adult female literacy, namely, Kaithal, Jind, Fatehbad, Hisar, Sirsa, Bhiwani, Gurgaon, Mahendergarh and Faridabad.
    • Higher Education has a different set of challenges and issues from School Education and is critical to qualitative social growth of the State. To ensure closer attention and a sharper focus on its development, our Government has created a separate administrative department of Higher Education. For expansion of outreach, one Central University at Mahendergarh and two private universities have already become operational. More private universities are at advanced stages of being set up. BPS Mahila Vishwavidyalaya, Khanpur Kalan, Sonepat will be further improved and strengthened. A number of schemes are also being implemented to enable children from weaker sections of the society to acquire higher education.
    • Teaching activity in schools gets disrupted every month with the retirement of teachers. In order to avoid such disruption, our Government has taken a historic decision to re-employ retiring teachers till the end of the academic session.
    • I am allocating Rs.5,946.29 crore for this sector during 2010-11 which is 11.53 % higher than the allocation for the current year. This includes Rs.1,490.32 crore on Plan side and Rs.4,455.97 crore on
      Non-Plan side.

    TECHNICAL AND VOCATIONAL EDUCATION

    • Quality technical and professional manpower is the most important resource for the socio-economic development of a State. At the time of its inception, Haryana had only 6 polytechnics and one engineering college in the State with a total annual intake of 1,341 students. Now, 1,12,910 students pass out every year from 546 institutions, including 141 engineering colleges.
    • The network of technical institutions is continuously growing.
      6 new Government Polytechnics have become operational at Madalpur (Faridabad), Hathnikund Barrage (Yamunanagar), Meham (Rohtak), Basai (Gurgaon), Indri (Mewat) and Mandkola (Mewat). Seven more polytechnics are being opened in Rewari, Kaithal, Panchkula, Panipat, Fatehabad, Kurukshetra and Yamunanagar districts. The prestigious Indian Institute of Management (IIM) is to be set up in 213 acres of land at village Gharnavati in Rohtak.
    • To prepare our students for skilled industrial jobs, a network of 109 Government Industrial Training Institutes and 74 private Industrial Training Centers is operating in the State with an annual intake of 27,792 and 10,976 students, respectively. 26 New ITI’s will be opened in the next three years, while 22 existing ITI’s will be expanded. Besides,
      29 ITI’s and 1,500 skill development centers will be established in PPP mode in the State during the next five years.
    • I am allocating Rs.431.12 crore for this sector during 2010-11, which includes Rs.300.11 crore on Plan side and Rs.131.01 crore on Non-Plan side.

    HEALTH

    • One of the key functions of a democratic government is to provide reliable, affordable and accessible healthcare to its citizens. This Government is striving hard to improve the quality of health infrastructure, the availability and quality of doctors, availability of free medicines, and efficient delivery of health and medical services. The State is providing healthcare through 52 hospitals, 94 Community Health Centers, 441 Primary Health Centers, 2,465 Health Sub-centers, 20 District TB Hospitals and 51 Dispensaries. Free drug supply to all the patients and introducing the Surgery Package Program are among the major initiatives of the Health Department. Six district hospitals at Gurgaon, Hisar, Bhiwani, Faridabad, Sonepat and Rohtak, are being upgraded into state-of-the-art Multi Specialty Hospitals with an expenditure of more than Rs.102 crore under the Economic Stimulus Package. Three district hospitals at Rewari, Panipat and Panchkula will be upgraded and Civil Hospital at Dadri will be expanded to 100 beds during 2010-11.
    • Construction of two medical colleges at Khanpur Kalan (Sonepat) and Nalhar (Mewat) has been started under the Economic Stimulus Package at an estimated cost of Rs. 617.61 crore. The Government has also announced setting up of Kalpna Chawla Medical College at Karnal. Pt. B.D. Sharma Post Graduate Institute of Medical Studies, Rohtak is to be upgraded to the level of All India Institute of Medical Studies under the Pradhan Mantri Swasthya Suraksha Yojna. For this purpose, a sum of Rs.125 crore has been earmarked by the Government of India and Rs.25 crore will be contributed by Haryana.
    • On 26 January, 2010, our Government launched the Nehru Bal Drishti Yojana, a new scheme under which eye collection centers have been set up and linked to “102”services in each district. At present one Eye Bank exists in the State at PGIMS, Rohtak. We propose to set up another Eye Bank in the State in the ensuing year.
    • I am allocating Rs.1,125.48 crore for this sector during 2010-11 which is 6.07 % higher than the allocation for the current year. This includes Rs.455.85 crore on Plan side and Rs.669.63 crore on Non-Plan side.

    SOCIAL WELFARE

    • Haryana Government is fully committed to the welfare of the vulnerable sections of the society and has undertaken a series of effective steps to provide social security to the aged, widows, destitute women, handicapped persons, eunuchs, dwarfs, persons from minority communities and families with only girl child/children. A provision of Rs.1,465.46 crore has been made for these schemes for the current year.
    • To ensure that citizens with disabilities are not left out of the mainstream of development, our Government has launched an ambitious Jawahar Social Infrastructure Mission to take up projects for this section of our society. Under JSIM, we propose to set up 10 schools for the visually challenged children, 8 schools for the children with hearing and speech impairments, 6 schools for the differently abled children, three State Level Institutes for providing vocational training to persons with different physical disabilities, 4 Senior Citizens’ homes, 21 Vocational Training Centers and two Life Long Homes for the differently abled persons in the next three years at a cost of Rs.150 crore.
    • In order to encourage Scheduled Caste girl students to go for higher education, a new scheme namely Anusuchit Jati Chhatra Ucch Shiksha Protsahan Yojana has been launched for the year 2009-2010 wherein annual scholarships ranging from Rs.5000 to Rs.14000 are being provided to Scheduled Caste girl students studying science, commerce or professional courses. Dr. Ambedkar Medhavi Chhatra Yojana has been extended to post graduate classes. The popular Ladli scheme for supporting the second girl child, initially launched for five years, has been extended for another five years.
    • I am allocating Rs.2,167.15 crore for this sector during 2010-11, which includes Rs. 2,010.20 crore on Plan side and Rs.156.95 crore on Non-Plan side.

    RECRUITMENT IN GOVERNMENT

    • In a democratic setup, the government is a vehicle for the delivery of development, infrastructure and social services to the citizens. Therefore, the efficiency of the government as an organization, as well as the bottlenecks in its operations, assumes importance. One of the main bottlenecks in government functioning at present is the delay and inconsistency in recruitment of human resource. We have, therefore, identified the services and cadres which need frequent recruitment to meet the requirements of different departments, public undertakings, boards and corporations, and decided that the Haryana Public Service Commission and the Haryana Staff Selection Commission will hold annual examinations, at pre-determined dates, for recruitment thereto, so that the candidates do not have to apply time and again. Accordingly, the HPSC will annually conduct the Engineering Services Combined Examination, Agriculture and Allied Services Combined Examination, and Legal and Allied Services Combined Examination, whereas the HSSC will conduct Graduate Level Combined Examination, Junior Engineers and Allied Services Combined Examination, Clerks Grade Examination, Drivers Combined Test and Steno-typists/ Stenographers Combined Examination.
    • Basic minimum eligibility qualification in respect of similar category posts shall be uniform in all Departments, Boards, Corporations, Companies and Societies. There shall be a Uniform Application Form in computer readable format. Self certified copies of certificates relating to caste, residency, age, physical handicap etc. will be accepted at the application stage. Original certificates shall be checked only at the time of interview and joining of selected candidates.
    • We have also decided that all fresh recruits will undergo mandatory induction training for 3 months after joining so that they are well prepared for their respective jobs. They will be given postings only after completing such induction training.

    BUDGET ESTIMATES 2010-11

    • Sir, I would like to draw the attention of Hon’ble Members to the fact that the Budget Estimates I bring before this august House for voting this year are in a slightly modified form. You will notice, Sir, that this time we are proposing 45 Demands for Grants as against the traditional 25 Demands. Recognizing that the State expenditure pattern has undergone significant changes in the last few years, the clubbing of departments under various Demands has been rationalized. This has been done to streamline departmental spending, and to bring greater transparency, accountability and control in the Budget. It would also instill greater discipline in matters of re-appropriation and avoid large variations between the Budget provisions and actual expenditure. The Hon’ble Members will also get a clearer picture of the expenditure they are voting on.
    • I now proceed to present before this august House the Budget Estimates for the financial year 2010-11. The Financial Year 2009-10 opened with a deficit of Rs.602.41 crore as per RBI books and is likely to be closed with a deficit of Rs.634.06 crore representing a transaction deficit of Rs.31.65 crore during the year on annual account. Under the Budget Estimates 2010-11, the Total Receipts (net of Public Debt) are projected at Rs.30,085.98 crore, of which Revenue Receipts are Rs. 24,540.83 crore, while Capital Receipts (net of Public Debt) are Rs. 5,545.15 crore. These signify, respectively, an increase of Rs. 1,729.05 crore, Rs.1,538.93 crore and Rs.190.12 crore over the corresponding projections in the Revised Estimates 2009-10. The Total Expenditure (excluding Repayments) under the Budget Estimates
      2010-11 is projected at Rs.33,600.84 crore, of which Revenue Expenditure is Rs. 28,482.64 crore, while the Capital Expenditure is Rs.5,118.20 crore. These signify, respectively, an increase of Rs. 2,004.73 crore, Rs. 1,818.49 crore and Rs.186.24 crore over the corresponding projections in the Revised Estimates 2009-10. The Budget Estimates 2010-11 project a Revenue Deficit of Rs.3,941.81 crore and a Fiscal Deficit of Rs.8,815.64 crore. The Balance form Current Revenues for 2010-11 is projected to be Rs.845.82 crore. The Revenue Deficit is primarily on account of the impact of the 6th Pay Commission, with the annual pay increase impact for 2010-11 amounting to about Rs.2600 crore, and the arrears of pay and pension amounting to about Rs.1570 crore.
    • Hon’ble members would be glad to note that our Government has made investments on capital expenditure to the tune of Rs.17,879 crore between 2005-2010, compared to the capital expenditure of only Rs.8,308 crore during 2000-2005. This Government, Speaker Sir, is totally dedicated to creating a bright future for our State.
    • Let me now indicate the sectoral allocations in the Budget Estimates 2010-11. The Agriculture and Allied sector is slated to receive Rs.1,073.62 crore, the Power sector is slated to receive Rs.4,642.71 crore, the Transport sector is allocated Rs.1,142.10 crore, the Irrigation sector is projected to receive Rs.1,616.49 crore, the Water Supply and Sanitation sector is slated to receive Rs.1,297.69 crore, the Urban Development sector is allocated Rs.1,447.14 crore, the Education sector, including Industrial Training and Technical Education, is projected to receive Rs.6,377.41 crore, the Health sector is slated to receive Rs.1,125.48 crore, the Social Justice and Empowerment including Welfare of Scheduled caste and Backward Classes sector is allocated Rs.2,167.15 crore, and the Rural Development and Panchayat sector is slated to receive Rs.956.17 crore.
    • As against the Annual Plan projections in the Budget Estimates 2009-10 at Rs.10,000 crore, revised further to Rs.10,400 crore, the allocation for the Annual State Plan 2010-11 is proposed at Rs. 10,500 crore. In addition to it, an outlay of Rs.1,363.58 crore for the Centrally Sponsored Schemes and other development plan schemes has also been included on the Plan side, boosting the composite Plan outlay in the Budget Estimates 2010-11 to Rs. 11,863.58 crore.
    • Let me confess, Sir, that the decision to come before this august House with a revenue deficit budget this year was not an easy one. It would have been an easy escape route for me to prepare a budget without deficit by suppressing expenditure. But the collective conscience of this Government does not allow such populist measures at the expense of the future of our people. It was a conscious decision of our Government not to curtail investment expenditure on the ongoing projects and important projects in the pipeline, in the long term interest of this State, and we have targeted a modest increase in plan spending for our Annual Plan 2010-11 accordingly. We do propose to exercise economy and restraint in general expenditure in the government departments, and, indeed, our Government has already adopted significant economy measures, but the pace of development of Haryana has to be maintained at all costs.
    • Our effort in this Budget has been to consolidate the gains that have been made by the State in the last five years. The budget deficit is within manageable limits and the measures for further financial discipline are likely to reduce its pitch further. Our tax revenue has already started recovering its normal growth, and can be expected to exceed the modest targets kept in the Budget proposals. It is also expected that the share in central taxes and other devolutions would go up during the year, as the implementation of revised pay structure across the country and payments of arrears are sure to increase the income tax receipts of Central Government. I, therefore, feel confident in assuring the House that we will be able to implement all our projected programs very successfully while achieving the targets fixed in the Budget. For this, I solicit the active cooperation and support of all the Hon’ble Members of this august House, and through them, of all the proud citizens of Haryana.

    CONCLUSIONS AND COMMENDATION

    • Before I conclude, I would like to acknowledge the untiring efforts and dedication put in and exhibited by the Finance Secretary and his colleagues in the Finance Department and the National Informatics Centre and its employees who persevered day and night to help me prepare and present these Budget proposals.
    • Hon’ble Speaker Sir, through you I want to extend the most solemn assurance to this House and to the people of Haryana at large, that we would summon all resources available to us and dedicate ourselves to the task of taking Haryana forward on the path of development at the same pace and with the same zeal that we have shown in the last five years.
    • Sir, with these words now I commend the Budget Estimates 2010-2011 to this House for its consideration and approval.

    JAI HIND!