In election year, Haryana gets tax-free budget

Claiming that the "economy of the state is on very strong footing", Haryana Finance Minister Harmohinder Singh Chattha Friday presented a tax free budget for 2014-15.

General elections are likely in April/May this year followed by Haryana assembly elections in October.

"The economy of the state is on very strong footing as it continues to grow at a pace much faster than the rate of growth of national economy," Chattha said in his budget speech in the Haryana assembly Friday.

He claimed that Haryana's economy grew at 6.9 percent in 2013-14 against the country's growth of 4.9 percent.

"The per capita income of Haryana continues to be highest in the country, except small states of Goa and Sikkim," Chattha pointed out.

Chattha said Haryana would have been a revenue-surplus state if due compensation on account of central sales tax had been received from the central government.

"Over Rs.7,000 crore are due to be received from the central government, which is expected to be received in instalments," he said.

The finance minister said that Haryana's fiscal deficit has been projected to be 2.5 percent of the gross state domestic product (GSDP) in the year 2014-15 against 2.9 percent of GSDP in revised estimates (RE) 2013-14.

He said Rs.32,731.29 crore would be spent on the annual plan 2014-15, including Rs.21,520.15 crore to be financed by the state budget.