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Dharamshala: The Sukhvinder Singh Sukhu dispensation is expecting an increase in the revenue deficit even as the government has decided to follow a policy of sound fiscal management with thrust on all round economic development. The government also aims to increase availability of financial resources as part of its medium-term fiscal policy.

As per the latest budget estimates, revenue deficit of Rs 6,072.94 crore is expected, which is Rs 1,368.81 crore higher than the budget estimates.

The compliance report of the finance department tabled in the Himachal assembly stated that the fiscal deficit was expected to be Rs 12,515.73 crore as compared to the budget estimate of Rs 9,900.14 crore. Thus, the fiscal deficit as a percentage of GSDP is expected to be 5.82%.

It stated that flash floods and landslides caused by unprecedented rainfall during the months of July and August had damaged infrastructure badly and also affected the state’s revenue. It will take time to restore infrastructure as well as the economy of the state, the report added.

The medium-term fiscal policy of the state government involves ensuring buoyancy in the state’s tax and non-tax receipts and to tap available resources with the Government of India for financing various development schemes and programmes, it mentioned.

The government also intends to take recourse to financial resources through externally aided projects and utilise borrowings allowed by the Government of India prudently for development. The state government will also be focusing on reducing unproductive expenses, the report added.

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  • Published On Dec 25, 2023 at 08:06 AM IST

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