Consider the following from Haryana's Budget 2022-23. 1. Revenue deficit has been brought within the limits prescribed by 15th Finance Commission under the FRBM Act 2. Fiscal deficit has been projected at 2.98 per cent of GSDP in BE of 2022-23. 3. Debt to GSDP ratio is below 25 per cent for Fiscal Year 2021-22 RE. 4. 47 existing budgetary demands for grants have been consolidated into 29 budgetary demands for grants. Which of the above statements are correct?

Revenue deficit-

• The predicted revenue shortfall for 2022–2023 was Rs 9,774 crore, or 0.98% of the gross domestic product.
• As opposed to a revenue shortfall of 3.29% of GSDP predicted at the budget stage, the state is predicted to experience a revenue deficit of 1.40 percent of GSDP in 2021–22.

Fiscal deficit -

• The target fiscal deficit for 2022–2023 was Rs 35,012 crore (3.52% of GSDP).
• The fiscal deficit was projected to be less than the budget forecast of 4.40% of GSDP in 2021–22, at 3.54% of GSDP, according to the updated estimates.

Macroeconomic and Fiscal Parameters

• The Governments commitment to promoting balanced economic growth across sectors has resulted in an annual compound growth of 6.5 percent in GSDP from 2014-15 to 2021-22.
• This has further been accompanied by growth in Per Capita Income of 4.9 percent at constant prices, during this period, indicating growth in the State Economy.
• As a result of prudent fiscal management, all fiscal parameters excluding the revenue deficit have been brought within the limits prescribed by the Fifteenth Finance Commission under the FRBM Act. Hence statement 1 is incorrect.
• Fiscal Deficit1 has been projected at 2.99 percent in RE 2021-22 and 2.98 percent in BE 2022-23, which is well under the 3.5 percent limit under FRBM Act. Hence statement 2 is correct.
• In BE 2022-23, provision of Reserve Fund of Rs. 1000 crore has been made for infrastructure projects on Revenue side as per CAG classification.
• However, this amount is to be utilized for creation of capital infrastructure. Thus, the Revenue Deficit would potentially further reduce to 0.88 per cent of GSDP.
• The overall debt stock has been contained, with debt to GSDP ratio remaining at 24.98 per cent for fiscal 2021-22 (RE) as against the limit of 32.6 per cent of GSDP prescribed by the Fifteenth Finance Commission. Hence statement 3 is correct.
• For the next fiscal as well, the debt stock is expected to be much below the stipulated limit of 33.3 per cent of GSDP recommended by the Fifteenth Finance Commission at 24.52 per cent of GSDP (BE 2022-23).

Reforms in Budgetary processes

• Introduction of Performance Linked Outlay (PLO) mechanism
• Rationalisation of 132 schemes for achieving a pronounced focus on implementation.
• Introduction of Medium-Term Expenditure Fund
• Aligning developmental allocations to Sustainable Development Goals (SDGs) and introduction of an output-outcome results report pertaining to the budgetary allocations to ensure the realisation of desired developmental goals.
• Merging various departmental allocations into new rationalised budgetary demands to harness synergies of departments that contribute jointly to common developmental objectives. Resultantly, 47 existing budgetary demands for grants have been consolidated into 20 budgetary demands for grants. Hence statement 4 is incorrect.