Rajasthan: Public Finance and fiscal Policy

Rajasthan: Public Finance and fiscal Policy

Due to creation of huge liabilities in earlier years, State remains into revenue deficit and fiscal deficit also increase to 3.13 per cent of GSDP in the year 2014-15. During 2015-16, there was a revenue deficit of 5,954 crore and fiscal deficit was 9.38 per cent of GSDP (with UDAY Scheme) and 3.42 per cent (without UDAY Scheme). The State could not achieve the target fixed under FRBM Act of revenue deficit and fiscal deficit.

Rajasthan: Public Finance and fiscal Policy

Trends in deficit :-


The fiscal deficit was 63,070 crore in 2015-16 with UDAY scheme, as against 67,350 crore assumed in Revised Estimates 2015-16. Fiscal Deficit without UDAY scheme was 23,020 crore as against `24,386 crore estimated in Revised estimates 2015-16. Fiscal Deficit to Gross State Domestic Product ratio was 9.38 per cent with UDAY scheme in 2015-16, whereas it was projected 9.99 per cent in Revised Estimates 2015-16 and fiscal Deficit without the impact of UDAY scheme worked out to 3.42 per cent of GSDP as against 3.62 per cent projected in Revised Estimates of 2015-16.


Salient features of fiscal position are as under:-


Trends of receipts:-


 During the year 2015-16, the revenue receipts have increased by 9.81 per cent over previous year. The growth rate of own tax revenue is 10.45 per cent which is mainly due to growth of 50.37 per cent in entertainment & luxury tax, 25.21 per cent in Electricity Duty, 20.18 per cent in State Excise, 13.06 per cent in Vehicle Tax, 9.00 per cent in Sales Tax, 01.41 per cent in Stamps and Registration, (-) 11.37 per cent in Taxes on Goods & Passenger Tax and (-) 5.58 per cent in Land revenue over the previous year.


Trends of expenditure:-


During the year 2015-16, 80.37 per cent of total expenditure excluding UDAY scheme was met from revenue receipts in comparison to 82.02 per cent in the year 2014-15 and the remaining from capital receipts and borrowed funds. The budgeted plan expenditure has increased by 46,051 crore in the year 2015-16 showing 104.24 per cent increase over previous year which is mainly due to expenditure of `40,050 crore under UDAY scheme. The expenditure on salary and wages during the year 2015-16 was 31.03 per cent of total revenue expenditure (net of interest and pension payment). The increase in expenditure on salary and wages during the year 2015-16 is 10.10 per cent over previous year. The developmental expenditure which comprises expenditure on Economic and Social services, was 1,33,370 crore including UDAY scheme during the year 2015-16, which is 80.91 per cent of aggregate expenditure vis-a-vi developmental expenditure of 82,944 crore during the year 2014-15 which was 74.49 per cent of aggregate expenditure in that year.


Interest Payment:-


 Interest payment as a percentage of Revenue Receipts and Revenue Expenditure was 11.97 per cent and 11.30 per cent respectively in the

year 2015-16.


Capital Outlay:-


The capital outlay with UDAY Scheme during the year 2015-16 was 21,986 crore, and 16,286 crore without UDAY Scheme which is higher than of 16,103 crore in the year 2014-15.


Fiscal Liabilities (Debt & Other Liabilities):-


 The quantum of fiscal liabilities is 2,09,386 crore including `40,050 crore for UDAY scheme as on 31st March, 2016 showing net increase of `61,777 crore over the previous year (Without considering impact of UDAY scheme total fiscal liabilities as on 31st March, 2016 was 1,69,336 crore showing an increase of `21,727crore over previous year). It comprises of (i) internal loan of `1,48,292 crore, (ii) loan of `8,258 crore from Central Government, (iii) liabilities of Provident Fund & State Insurance of 35,514 crore and (iv) other liabilities of Reserve Funds & Deposits of `17,322 crore. The growth of fiscal liability was 41.85 per cent during the year 2015-16 with UDAY scheme (Without UDAY scheme increase in fiscal liabilities is 14.72 per cent in the year 2015-16 over the year 2014-15). The ratio of fiscal liabilities to revenue receipts was 208.79 per cent during the year 2015-16 with UDAY scheme and 168.85 per cent without UDAY scheme. The fiscal liabilities stood at 3.90 times of own (tax and non-tax) revenue with UDAY scheme and 3.16 times without UDAY scheme at the end of the year 2015-16. The fiscal liabilities as percentage of GSDP in the year 2015-16 is 31.13 per cent with UDAY scheme and 25.17 per cent without UDAY scheme and it is lower than the ceiling of 36.5 per cent as mentioned in FRBM Act, 2005.


Fiscal Consolidation:-


Liabilities created in the 2013-14 adversely affected the State Finance in the year 2015-16. This resulted in to Revenue Deficit of 5,954 crore in the year and Fiscal Deficit of  63,070 crore with UDAY scheme, which is 9.38 per cent of GSDP. Fiscal Deficit without UDAY scheme in the year 2015-16 is `23,020 crore which is 3.42 per cent of GSDP.




Financial Institutions are playing an important role in economic development of the State by mobilization of deposits and credit disbursement to various sectors. The Government has increasingly begun to tap institutional finance from banks and other term lending institutions for financing various developmental programmes in the State, in view of the need to supplement plan financing. Banks/ Financial institutions have an important role in this regard. However, credit should be utilized in optimum manner to maximize returns and spread the benefit over a wider section of the  population. Credit through banks is an important source of investment for development in the State. Various credit-based programmes, like; National Rural Livelihood Mission-Deen Dayal Antyoday Yojana (DAY), National Urban Livelihood Mission-Deen Dayal Antyoday Yojana (DAY), Prime Minister Employment Generation programme and schemes for development of SC/ST and other poverty alleviation programmes are being implemented for the development of the weaker sections of the society with the active involvement of the banks.


The banks including the Regional Rural Banks, have helped in execution of various rural development schemes by providing credit support and thus they are fulfilling the national objective of upliftment of the weaker sections living below the poverty line. the total deposits have increased and credits have decreased during the year 2016 (upto September) over the corresponding period in the previous year i.e. upto September, 2015. The deposits have increased by 15.74 percent in Rajasthan in September, 2016 over September, 2015, while this increase was 12.93 per cent at all India level during the same period.


The credit deposit ratio for all scheduled commercial banks was 70.61 per cent in Rajasthan and 74.46 per cent at all India level, as on September, 2016, whereas it was 84.72 per cent in Rajasthan and 75.01 per cent at all India level in September, 2015. Total credit percentage in Rajasthan upto September, 2016, over corresponding period of 2015 has decreased by 3.53 per cent while the credit increased by 12.11 per cent at the all India level. One bank branch in Rajasthan is catering to the needs of 10,777 persons on an average, as per estimated population of 735.23 lakh (as on 1 October, 2016) and covers an average area of 50 sq.km. of the State.



(Public Welfare Benefits Delivery Scheme)


To build a better society, empowerment of every woman is imperative, since the empowerment of the woman is empowerment of the society and thus of the State. A path breaking scheme of Financial Inclusion and Women Empowerment, Bhamashah Scheme was first launched in the year 2008. Bhamashah Scheme, an end-to–end service delivery platform to transfer cash and non-cash benefits to the targeted beneficiaries in a transparent manner was relaunched in the year 2014 with broader objectives. The Scheme is family–based programme of financial inclusion, where each family is issued a ‘Bhamashah Card’.


Multiple cash benefits are accessed through the Bhamashah Card and transferred to the bank accounts of the beneficiaries. Non-cash benefits are also given directly to the entitled beneficiaries. Bhamashah card holders can get services at the doorstep at several different service-points. Cash benefits  are being transferred to their bank accounts, withdrawal and digital payment facilities are available at more than 23,500 e-Mitra kiosks, Business Correspondents & ATMs along with bank branches. E-Mitra is a multi-service, single-window network for providing governmental information and services to the citizens. Further, Mobile Wallets such as Paytm, m-pesa and Oxigen Wallet have been integrated with Bhamashah Platform to provide mobile payment facility to beneficiaries. In case of Non-cash benefits, such as ration distribution, the Fair Price Shops (FPS) have been I.T. enabled with deployment of approximately 25,000 points of service (PoS) terminals. Similarly, for Bhamashah Health Insurance, more than 1,125 health institutions have I.T. enabled receptions. Bhamashah Scheme is unique in number of ways: To empower women by making them Head of the Family and also to empower them with freedom to decide, what to spend their money on.


The Bhamashah Card issued to a family under the Bhamashah scheme is linked to a bank account, that is in the name of the lady of the house as the head of the family. To provide all cash/non-cash benefits (Individual/ Family) can be accessed through the Bhamashah Card. Cash benefits are directly ransferred to the bank accounts of the beneficiaries and non-cash benefits/services are provided directly into the hands of the beneficiaries using biometric authentication. By replacing the manual system of service delivery by electronic system, the system has been rendered completely transparent. The transaction mapper and receipt of messages on mobile generates transparency and trustworthiness of the system. No need for multiple surveys and validations. The beneficiaries have been identified and authenticated and have been verified through the two-layered system of verification and hence making the data cleanest possible.


The Administrative Report on the benefits transferred through the Bhamashah platform is presented twice for social audit, during a financial year in the Gram Sabha at each Gram Panchayat. The departmental databases as well as the applications are being integrated with the Bhamashah Application to avoid the repetitive steps and to remove bottlenecks and duplication.


Achievements of Bhamashah Yojana upto 6th February, 2017 are presented in Table


Achievements of Bhamashah Yojana


No.      Particulars                                        Achievement

  1. Bhamashah Enrolment

– Fam ilies                                          1.37 Crore


  1. Bhamashah Enrolment-

-Individuals                                       4.94 Crore


  1. No. ofTransactions (Cash

& Non-Cash)                                                16 Crore


  1. DBT-Cash transferred to

Beneficiaries in bank account      5600 Crore


Benefits of different cash as well as non-cash schemes like Social Security Pensions, MNREGA, Janani Suraksha Yojana, Rajshree Yojana, Bhamashah Swasthya Bima Yojana, Palanhar, Scholarships, Ration Distribution etc. have been transacted through Bhamashah platform.


The Administrative Reports of the benefits transferred through the Bhamashah platform were presented for social audit on 24.04.2016 and 28.11.2016 in the Gram Sabha at each Gram Panchayat.


Digital Payment through Bhamashah Platform:-


Bhamashah platform leverages the JAM (Jan Dhan, Aadhar and Mobile) trinity for electronic service delivery, which eventually digital the payments. Initiatives undertaken to promote digital payments are summarized below:-


Extension of banking services

Appointment of Additional BCs

Development of Merchantile PoS

IEC campaign

Integration of Digital Payment mode in e-Mitra.


error: Content is protected !!