After being on a high-growth course, Haryana is now feeling the heat of the slowdown with its total revenue collections witnessing a dip of nearly Rs 2500 to Rs 3000 crore as per revised estimates (RE). “Though the total revenue collections are still higher by nearly Rs 3000 crore as compared to last year, the economic slowdown has had an impact on Haryana’s purse. The revenue growth rate has plunged from the earlier over 20 per cent to 10 per cent owing to which our total collections have seen a dip of nearly Rs 3000 crore as per revised estimates and Rs 900 crore as per original budget estimates,” Haryana Finance Minister Birender Singh said.

With an ambitious plan size of Rs 10,000 crore for 2009-10 (it was Rs 7130 crore last year), Haryana is trying to beat recessionary blues with high spending on infrastructure. From infrastructure such as roads, bridges, power and irrigation to social sectors such as health and education, the budget may be much bigger than last year in terms of spending.

To make up for the shortfall in targeted revenue and following Centre’s decision to allow more market borrowings to states, Haryana may take recourse to borrowing from the markets in the coming financial year. “As per our credit standing, we can borrow up to Rs 10,000 crore from the markets. So we are trying to clear the entire Sixth Pay Commission liability of Rs 6400 crore over two years. Since Rs 2000 crore would be cleared in the current fiscal, the provision for the rest has been made in the coming budget,” the finance minister added.

While the budget is expected to be high on doles in a poll year, the slowdown-hit state is also looking into hitherto unexplored areas for resources. “Resource mobilisation through items that do not hurt the pockets of the common man are being looked into,” he added.