The achievement of the Annual Plans for the Eleventh Plan is shown below: Achievement of Plan outlay

Transcription

1 Planning Commission (Financial Resources Division) State: Karnataka A. Economic Profile of Karnataka Annex-I contains Tables 1 to 5. Table 1 compares the growth performance of Karnataka with its neighboring States. Table 2 compares the per capita NSDP of Karnataka with its neighboring States and All India average. Table 3 gives the trends in sector-wise growth of the State. Table 4 & 5 present the credit deposit profile of Karnataka and its neighboring States and All-India. B. Fiscal Overview Annex-II contains Table 6 to 11. Table 6 presents the trends in different Deficits, outstanding liabilities and total expenditure of the State as % of GSDP of the State. Table 7 indicates the trends of State s Own Tax Revenue GSDP ratio of Karnataka and its neighboring States. Table 8 compares the Public Expenditure ratio of Karnataka with its neighboring States. Table 9 shows the Social Allocation ratio of Karnataka with its neighboring States. Table 10 presents per capita Revenue Receipts (TRR), Plan Expenditure and expenditure compared with all India average. Table 11 provides the financial overview of the state. C. Performance of the State Plan: The achievement of the Annual Plans for the Eleventh Plan is shown below: Achievement of Plan outlay Year GSDP Rs.crore GSDP Plan Outlay Growth (%) Approved Actual % achieved % GSDP * (proposed) Source: GSDP- CSO (as on ) (*based on 13 th FC recommendations) As shown in the table above, the achievement of annual plans in the first and third year of the 11th Plan has been above 90.00%. The achievement was more than 100% in the last two years of the 11th Plan. As against the projected outlay of pg. 1

2 Rs.101, crore for the 11th Plan, the achievement has been Rs crore (at prices). Thus the State has achieved 106.6% of the 11th Plan target. D. Assumptions underlying State Government projections for AP Assumptions underlining the state government projection of resources for the Annual Plan are as follows: Indicators % increase in over RE GDP growth (nominal prices) 14.50% Rate of Growth of share in Central Taxes 18.23% Rate of growth of SOTR 13.21% Annual growth in own non-tax revenues -0.04% Interest payments 25.00% Annual growth in pensions 23.32% Annual growth in salaries 34.72% E. Scheme of Financing Annual Plan Draft scheme of financing Annual Plan is at Annex-III. Estimates of BCR are at Annex-V. The share of Central Taxes has been incorporated as per allocation of the Central Budget Normal Central Assistance has been worked out as per the Gadgil-Mukherjee formula. Scheme-wise ACAs have been projected individually at Annex-IV. F. PSE Plan The State Government has indicated Internal Resources (IR) of PSE Plan at Rs crore for The total PSE s Plan of Rs crore also includes Extra Budgetary Resources (EBR) of Rs crore. G. ACA for EAPs State Government has indicated Rs crore as ACA for EAPs. Loan portion of ACA for EAPs is shown at Rs crore. pg. 2

3 H. 13th Finance commission Grants: The details of the Plan grants and Non-plan Grants amounting Rs crore for the Annual Plan are shown in the following table: Sl. No. State: Karnataka Non-plan Grants for (Rs.in crore) Name of the grants Local Bodies Disaster Relief (including for Capacity building) Post devolution Non-plan Revenue Deficit Performance Incentive Environment- Water Sector Management Governance a) Improvement in Supply of Justice b) Improvement of Statistical Systems at State and District Level c) Employee and Pension Data base Maintenance of Roads and Bridges Total Plan Grant 1 Elementary Education Environment- (a) Forest protection (b) Renewable Energy 3 Governance ( a ) Reduction in Infant Mortality Rates (b) Incentive for Issuing UIDs (c) District Innovation Fund State-specific Total Grand Total pg. 3

4 I. Issues pertaining to State Finances Desired Plan Size: The Plan document provided by the State Government shows a desired Plan size of Rs crore for the Annual Plan The approved Plan size for was Rs crore. The Annual Plan , thus, shows an increase of 10.40% over the previous year approved plan size. As against the desired Plan size of Rs crore, resources are estimated at Rs crore excluding onetime ACA. Thus, there is a resources gap of about Rs As informed, the state has also some resources borrowed through distribution Utilities (agency) to the extent of Rs.388 crore, which if added, may increase the plan size. Borrowing Ceiling: The borrowing limit indicated by MOF for is Rs crore (at 3.00% of the GSDP). The State budgetary borrowing estimated by the State for is put at Rs crore. Thus, the State is well within the ceiling of borrowings and has some fiscal space. Basis for estimating scheme-wise ACA : AIBP: The allocation of ACA under AIBP for AP was Rs crore. For the Annual Plan , the allocation of ACA under AIBP has been fixed at Rs crore which is 17.24% lower than the previous year. NSAP: The allocation for NSAP was Rs crore for The allocation for has been indicated at Rs crore. Thus, there has been % increase in the allocation for over the previous year. Roads & Bridges: The allocation for Road & Bridges is fixed at Rs crore for with increase of 5.34% over the previous year. RKVY: The allocation for RKVY for was Rs crore which has been kept at the same level for the time being. The actual allocation will be finalized soon WGDP: The allocation for WGDP for was Rs crore which has been increased to Rs crore for the Annual Plan with insignificant growth. pg. 4

5 ACAs for other schemes like TSP, NeGAP and grants under article 275 (1) have been increased/decreased proportionate to the increases/decreases in the allocation made in the union budget Onetime ACAs allocated to the State since are as follows: (Rs. in Crore) Year Onetime ACA 7.65 (25.50) (36.37) (94.44) (119.00) (49.00) (56.00) (165.20) (181.72) (151.67) (140.00) Note: Loan component of OTACA is indicated in parentheses. Year indicates end of 31 st March pg. 5

6 Economic Profile of Karnataka Annex-I (i) Growth rate trend ( to ) Table-1 Growth Rates of GSDP at constant ( ) prices States Karnataka Andhra Pradesh Tamil Nadu Maharashtra NA Kerala Goa All India Source: CSO, series, as on (ii) Per Capita NSDP Table-2 Per capita NSDP at Constant ( ) price States Karnataka Andhra Pradesh Tamil Nadu Maharashtra NA Kerala Goa All India Source: CSO, series, as on (iii)sectoral Growth Rate Table-3 :Sectoral growth rate (Real) of GSDP with base Sector Agr. and Allied Industry Services Total Source: CSO pg. 6

7 (iv) Credit Deposit Ratio of State Table-4 :Credit Deposit Ratio of the state Rs. Crore Year Deposit Credit CD ratio ROG(deposit) ROG(credit) Source: RBI Report (year indicates end of 31st March) Table-5 :Credit Deposit Ratio of the state including neighboring states Year Goa Karnataka Maharashtra Andhra Pradesh Tamil Nadu Kerala All India Source: RBI Report (year indicates end of 31st March) pg. 7

8 (i) Fiscal Parameters Fiscal Overview of Karnataka % of GSDP at current prices Table-6: Fiscal Parameters of the State Indicator (Pro. Actual) Annex-II LE Est Fiscal Deficit Revenue Deficit Primary Deficit OL IP/RR (ii) State s Own Tax Revenue (SOTR) Table-7 :SOTR of the state as % of GSDP (at current prices) States LE Karnataka Goa Andhra Pradesh Tamil Nadu Kerala (iii)public Expenditure Ratio Table-8 :Public Expenditure Ratio States LE Karnataka Goa Andhra Pradesh Tamil Nadu * Public expenditure ratio= the percentage of public expenditure (plan + non-plan) to GSDP. pg. 8

9 (iv) Social Allocation Ratio Table 9 : Social Sector Expenditure* to Total Expenditure (Per cent) State (RE) (BE) Andhra Pradesh Goa Karnataka Kerala Maharashtra Tamil Nadu All States Source: RBI Report- Budget Documents of the State Governments. * The social allocation ratio= the percentage of public expenditure (plan +non-plan) earmarked for social services. (v) Per Capita Profile Table 10: Per Capita Profile of the State Year pro BE ac Per Capita Total Expenditure Per Capita Revenue Receipts Per Capita Plan Exp Per Capita SOTR Per Capita GSDP pg. 9

10 Sl. No. (vi) Table 11: Financial Overview Item/Year Eleventh Plan 12 th Plan (Prov.) (BE) (RE) (AP/BE) 1 Tax Revenue a State's Own Tax Revenue b Share in Central Taxes Non Tax Revenue a State's Own Non-Tax Revenue b Grants Total Revenue Receipts Non Debt Capital Receipts Total Receipts Revenue Expenditure a Plan b Non Plan Capital Expenditure a Plan b Non Plan Capital Outlay a Plan b Non Plan Loans & Advances a Plan b Non Plan Total Expenditure a Plan b Non Plan Revenue Deficit Fiscal Deficit Primary Deficit Total Outstanding Liabilities (as at end of the year) GSDP (at current prices) Revenue Deficit (as % of GSDP) -1.39% -0.54% -0.48% -1.10% -0.29% -0.72% -0.18% 17 Fiscal Deficit (as % of GSDP) 1.97% 2.89% 3.24% 2.81% 2.87% 2.92% 2.94% 18 Primary Deficit (as % of GSDP) 0.30% 1.39% 1.69% 1.32% 1.27% 1.54% 1.50% 19 Total Outstanding Liabilities (as % of GSDP) 22.17% 23.68% 24.86% 24.14% 23.30% 23.62% 22.66% 20 Own Tax Revenue (as % of GSDP) 9.58% 9.15% 9.11% 10.10% 10.09% 10.54% 9.95% pg. 10

11 Annex-III Scheme of Financing Annual Plan of Karnataka Items XI Plan (Proj.) Annual Plan Actuals AP RE AP/BE At current prices A 1 State's Own Resources a BCR b MCR (exlcuding deductions for repayment of loans) c Plan grants from GoI (12th/13th FCC) d ARM e Adjustment of Opening Balance f Amount met by Cess Fund / Reserve Funds / Deposits g Amount spent on CSS/CPS in excess of receipts h Rounding off of Error while converting lakhs to Crores State Government's Budgetary 2 Borrowings (i-ii) (i) Gross Borrowings Net accretion to State provident fund, Reserve Fund, deposits, etc a b Gross Small savings c (i) Gross Market Borrowings (ii) Net market borrowings d Gross Negotiated loans e Bonds/Debentures f Loans portion of NCA 358 g Loans portion of ACA for EAPs h Loans for EAP - (Back to Back ) 450 i Others Loans (ii) Repayments (a to d) a Repayment of GOI Loans b Repayment of NSSF c Repayment of Negotiated Loans d Repayment of Market borrowing 1617 e 3 Repayment - Others CENTRAL ASSISTANCE (a+b+c) - Grants a Normal Central Assistance b ACA for EAP c Others Total A : State Government's Resources (1+2+3) B 1 Internal resources Extra Budgetary Resources Budgetary support Total B : PSEs (1+2+3) C Total C : Local bodies ( i + ii) D Aggregate Plan Resources pg. 11

12 Annex-IV Sl. No. Components of other Schemes/Programmes for Annual Plan Name of Projects/Programmes (Rs. In crore) AP estimate 1 AIBP JNURM NSAP NPAG - 5 APDRP 6 WGDP Roads and Bridges RSVY/BRGF TSP RKVY* NE-GAP Grant-in-aid (article 275) Onetime ACA Total pg. 12

13 Estimates of Balance from Current Revenue Annex-V Sl No. Items XI Plan (Proj.) Annual Plan Actuals Actuals Actuals Actuals RE AP/BE At Current Prices I. NON PLAN REVENUE RECEIPTS (1 to 4) Share in Central Taxes State's Own Tax Revenue Non Tax Revenues Non Plan Grants From Centre (4.1 to ) 4.1 Revenue Deficit Grant / Performance Incentive Grant 4.2 Central Share of Calamity Relief / Disaster Relief Fund 4.3 Grants for Local Bodies Other Non-Plan Grants II. NON PLAN REVENUE EXPENDITURE (5 to 9) Non Developmental Expenditure ( to 5.4) 5.1 Interest Payments Pension Payments Salaries Others Developmental Expenditure (6.1 to ) 6.1 Salaries Others Pay and DA revision (Not included in and 6.1) 8 Statutory Transfers to Local Bodies Urban Local Bodies Rural Local Bodies Plan Transfers to Local Bodies & PSEs (Excl. CSS) 9.1 Urban Local Bodies 9.2 Rural Local Bodies 9.3 Public Sector Enterprises (PSEs) III. BCR without ARM (I-II) IV. ARM V. BCR with ARM (III + IV) pg. 13