Intentions to make Uttarakhand decade with the help of Modi, increasing debt becomes headache for Dhami

In the budget, it is expected to get money from the center itself for all the financial provisions made for the state’s infrastructure development and welfare schemes. According to Chief Minister Pushkar Singh Dhami, the provisions made in the budget in collaboration with Prime Minister Narendra Modi will help in making Uttarakhand the decade.

Since the BJP is under pressure to fulfill the resolutions of its election vision paper, it has already announced all the provisions it made in the budget. Whether it is to provide three cylinders free of cost to the Antyodaya families, to increase the amount of Gau Sadans or to arrange the budget for the committee of Uniform Civil Code.

There is no doubt about it, because the centrally funded schemes will have the biggest role in the roadmap for the development of the state. For all these schemes, the state government will have to provide only its share of funds.

As far as starting new schemes on its own is concerned, the government is also surrounded by the challenges of increasing expenditure. The government needs 48 percent of the budget to pay the salaries of government employees and pensioners of pensioners and interest on loans taken in previous years. According to the estimates of the Finance Department, the salary and pension is expected to increase by seven per cent annually. Similarly, interest payment is likely to increase by eight per cent per annum. Obviously, after meeting the revenue expenditure, the state government (capital expenditure) does not have much money left for development and construction works. Therefore, there is an increased dependence on central schemes for its infrastructure works.

As far as the income of the government is concerned, then it is going to get a big setback due to the discontinuation of GST reimbursement. The amount received under the 15th Finance Commission is also decreasing year after year. That is, in the coming time, the challenge will be tough, the cost of which will be paid by the capital expenditure, which is believed to be reduced.

Increasing debt is also a headache
The increasing debt on the state government is also the biggest headache. Interest has to be paid every year along with the installment of the principal amount of the loan taken earlier. According to the report of the Finance Department, till 31 March 2022, more than 61 thousand crore debt had been incurred on the government. It is estimated that by March 31, 2023, it will increase to 67 thousand crores. Due to the limited resources of income, the state government has no other option but to take loans to meet its needs. So debt is undoubtedly a headache, but the government will continue to take it.

The size increases every year, the full expenditure is not possible every time
Like every time, this time also the state government has increased the size of the budget. But it has also become a tradition that no government can spend the entire budget. The government made a provision of 65571 crores. This is about 13 percent more than the original budget of last year. However, the size of the budget was further reduced in the last financial year by including the supplementary budget.