West bengal economy updates
Gross State Domestic Product (GSDP)
The Gross State Domestic Product (GSDP) of West Bengal for 2019-20 (at current prices) is estimated to be Rs 13,14,529 This is 14% higher than the revised estimate for 2018-19.
Total expenditure
Total expenditure for 2019-20 is estimated to be Rs 2,37,964 crore, a 4.9% increase over the revised estimate of 2018-19. In 2018-19, as per the revised figures, the expenditure is estimated to increase by Rs 11,979 crore (5.6%) over the budgeted estimate.
Total receipts
Total receipts (excluding borrowings) for 2019-20 are estimated to be Rs 1,64,678 crore, an increase of 7.7% as compared to the revised estimate of 2018-19. In 2018-19, total receipts (excluding borrowings) are estimated to exceed the budgeted estimate by Rs 3,352 crore (2.2%).
Krishak Bandhu Scheme
Krishak Bandhu Scheme has been announced for the benefit of 72 lakh farmers and Bhagchasis owning agriculture land. The scheme will provide an assured grant of up to Rs 5,000 for one acre of land. Further a minimum grant of Rs 2,000 will be provided to farmers holding less than one acre of land. In the event of death of a farmer, his family will receive one-time assistance of two lakh rupees.
Kanyashree Prakalpa
Kanyashree Prakalpa is a conditional cash transfer scheme which seeks to improve the status of girl child, and covers 52.5 lakh girls in the state. The income criteria for Kanyashree has been removed to include all girls between the age of 13 to 19 from all income groups.
Capital expenditure
Capital expenditure for 2019-20 is proposed to be Rs 73,636 crore, which is an increase of 10.3% over the revised estimates of 2018-19. Capital expenditure includes expenditure affecting the assets and liabilities of the state, such as: (i) capital outlay, i.e. expenditure which leads to creation of assets (such as bridges and hospitals), and (ii) repayment and grant of loans by the state government.
Revenue expenditure
Revenue expenditure for 2019-20 is proposed to be Rs 1,64,328 crore, which is an increase of 2.6% over revised estimates of 2018-19. This expenditure includes payment of salaries, maintenance, etc.
Non Tax Revenue
West Bengal has estimated to generate Rs 3,987 crore through non-tax sources in 2019-20. Of this, Rs 1,096 crore will be the interest received by the state from various public sector undertakings.
Tax Revenue
Total own tax revenue of West Bengal is estimated to be Rs 65,546 crore in 2019-20. This is 9.1% higher than the revised estimate of 2018-19.
Revenue deficit
It is the excess of revenue expenditure over revenue receipts. A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets. The budget estimates no revenue deficit (or surplus) in 2019-20. This implies that revenue receipts are expected to match the revenue expenditure, resulting in a balanced budget. The 14th Finance Commission had recommended that states should eliminate revenue deficits. The 2019-20 estimates for West Bengal suggests that the state will be able to meet this target of eliminating revenue deficit.
Fiscal deficit
It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the government, and leads to an increase in total liabilities. In 2019-20, fiscal deficit is estimated to be Rs 27,254 crore, which is 2.07 % of the GSDP. The estimate is lower than the 3% limit prescribed by the 14th Finance Commission. This limit may be relaxed to a maximum of 3.5%, if states are able to contain their debt and interest payments to certain specified levels.
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