Assam Budget 2021-22|Full analysis| অসম বাজেট ২০২১-২২|Target 1 lakh jobs|Krishnashree Das|ECO UNBOX|

Introduction:- The fiscal position of Assam over the years 2016-17 to 2020-21 have been analyzed below to highlight the areas requiring intervention for improvement and strengthening. The source of data for actual in this document is the CAG’s report on State finances. The figures for the years 2016-17 to 2019-20 are Actual and that for 2020-21 is projected which is included in the Budget Speech for the year 2021-22 presented by the Hon’ble Finance Minister of Assam and lso the XV Finance Commission report.

HIGHLIGHTS OF ASSAM BUDGET 2021-2022 — HIGHLIGHTS OF BUDGET 2021-2022

Details of Government Accounts: Main divisions of Government Accounts:

1) Consolidated Fund

2) Contingency Fund and

3) Public Account.

4) Consolidated Fund.

It has two main divisions Revenue Capital, Public debt, loans, etc.

Revenue deals with the proceeds of taxation and other receipts, classified as Revenue and the expenditure met there from. Accordingly, it has been subdivided into two sections—Receipt Head (Revenue Account) and Expenditure Head (Revenue Account). Capital—has three main sections. Receipt Head (Capital Account)—deals with receipts of capital nature which cannot be applied as set-off to capital expenditure.

Expenditure Head (Capital Account)—deals with expenditure met usually from borrowed funds with the object of either increasing concrete assets of material of permanent nature (e.g. construction of a dam) or reducing recurring liabilities. It also includes receipts of capital nature, intended to be applied as a set-off to Capital expenditure.

Public Debt, Loans and Advances, etc. — comprises mainly loans raised by Government and their repayment and loans and advances made by Government and their recovery. Page 1 of 382) The Contingency Fund is intended to provide advances to the Executive/Government to meet unforeseen expenditure which may arise during the course of a year pending its authorization by the Assembly. 3) The Public Accounts meant to record transactions related to Debt, Deposits, Advances, Remittances and Suspense. Under ‘Debt, Deposits and Advances', transactions in respect of which Government incur a liability to repay the moneys received (Debt and Deposits) or acquire a claim on amounts paid (Advances) are recorded, together with repayments of the former and recoveries of the later. 'Suspense' and 'Remittances' are meant mainly for the temporary accommodation of debits/credits.

The Finance Minister, Dr. Himanta Biswa Sarma, presented the Budget for Assam for the financial year 2020-21 on March 6, 2020.

The Gross State Domestic Product of Assam for 2020-21 (at current prices) is projected to be Rs 4,08,627 crore. This is a 12.4% increase over the revised estimate for 2019-20.
Total expenditure for 2020-21 is estimated to be Rs 1,03,762 crore, a 13.3% decrease from the revised estimate of 2019-20 (Rs 1,19,716 crore). In 2019-20, total expenditure is estimated to increase by 20.4% (Rs 20,297 crore) from the budget estimate for the year.
Total receipts (excluding borrowings) for 2020-21 are estimated to be Rs 92,231 crore, a decrease of 2% as compared to the revised estimate of 2019-20. In 2019-20, total receipts (excluding borrowings) are estimated to increase by Rs 9,880 crore (11.7%) from the budget estimate for the year.
Revenue surplus for 2020-21 is targeted at Rs 9,154 crore, or 2.24% of the Gross State Domestic Product (GSDP).
Fiscal deficit is targeted at Rs 9,383 crore (2.3% of GSDP). In 2019-20, the fiscal deficit is estimated to be Rs 21,531 crore (5.92% of GSDP).
In 2020-21, the sectors of Rural Development (45%), Agriculture (27%), Irrigation and flood control (25%), and Police (20%) saw the highest decrease in allocations over the revised estimate of the previous year.
Subsidy: Income support of Rs 830 per month (Rs 400 for medicines and Rs 430 for vegetables and fruits) will be provided to 27 lakh families through direct benefit transfer mode. Rs 2,800 crore has been allocated for this purpose. Free rice will be provided to all beneficiaries under the National Food Security Act, as part of the Anna Yojana initiative. Rs 472 crore has been allocated for this initiative for the year 2020-21. All households with monthly electricity consumption below 30 units will be provided free electricity.
Entrepreneurship: Two lakh youth of the state will be covered under the revised Swami Vivekananda Youth Empowerment Yojana to encourage youth to form entrepreneurial groups. Seed capital of Rs 50,000 will be provided to each member of such groups to initiate entrepreneurial activities. Rs 1,000 crore has been allocated for this purpose. Entrepreneurship will be introduced as a curriculum subject from Class 11 onwards covering all students enrolled in three-year degree courses.
Investment: The state government will acquire additional shareholding in the Numaligarh Refinery Ltd to increase its stake from 12.35% currently to 26%. Rs 1,500 crore has been allocated for this investment.
GSDP: Assam's GSDP (at constant prices) is estimated to grow at a rate of 8.5% in 2019-20 over the previous year. This is higher than the 5% GDP growth rate estimated for the country.
Sectors: Agriculture, Industry, and Services are estimated to contribute 17%, 39%, and 44%, respectively to the economy in 2019-20. The industry and services sector have seen a decline in growth in recent years, while the agriculture sector continues to grow at a low rate.
Unemployment: According to the Periodic Labour Force Survey 2017-18, Assam has an unemployment rate of 8.1%, which is higher than the all-India unemployment rate of 6.1%. The female unemployment rate in Assam is 13.9%, which is much higher than the all-India female unemployment rate of 5.7%.
The total expenditure in 2020-21 is targeted at Rs 1,03,762 crore. This is 13.3% lower than the revised estimates of 2019-20 (Rs 1,19,716 crore). This expenditure is proposed to be met through receipts (other than borrowings) of Rs 92,231 crore and borrowings of Rs 13,015 crore. Total receipts for 2020-21 (other than borrowings) are expected to be 2% lower than the revised estimate of 2019-20.

Downloads

Assam Budget 2020-21 Speech-Assamese

Assam Budget 2020-21-Speech-English

Budget Highlights 2020-21

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