Some Aspects of Haryana State Finances –An Exploratory Analysis

To understand the state financial position the paper analysed fiscal performance of Haryana on three broad indicators: revenue and spending patterns, resource gaps and debt sustainability. Paper found that share of states own non-tax revenue has decreased significantly and share of central transfer of taxes and grants to Haryana has shown significant increasing trends. Comparative fiscal position for Haryana has deteriorated after 2008-09 as both its revenue deficit(RD) and gross fiscal deficit(GFD) had been more than NSC state’s average and all states combined average. Pace of debt accumulation has increased in the state in recent years. Overall state finances is that Haryana are well managed. The broad trends in state finances do not indicate major problem of sustainability. Key fiscal parameters exhibit a sound fiscal health of the State but the analysis reveals that fault lines started to be visible in financial management of the state. The debt accumulation is likely to increase, so does the pressure of debt burden which may force state in a debt spiral. The state is also required to increase its revenue base by following a prudent fiscal strategy by increasing its own non-tax reve¬nues through user charges and by recovering cost from government services.