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Budgetary Chronicles: Haryana's Spending Focus and Procurement Dynamics

як arju mrestate23 mrestate23 (2023-12-28)

З приводу خرید آپارتمان در میرداماد

Haryana, with its population of 30.3 million people, spans across an expanse of 44,212 square kilometers (17,070 square miles), making up just under 1.4% of India's total geographical area. Ranked as the 21st largest Indian state by area out of 28 states, Haryana holds the 17th position in terms of population among its Indian counterparts. In the fiscal year 2023-24, the Gross State Domestic Product (GSDP) of Haryana reached Rs.11.2 lakh crore, showcasing a noteworthy 13% increase from the previous year's GDP in 2022-23. While India's overall GSDP growth stands at around 6 percent, Haryana's growth rate registers at 3.86 percent. A substantial proportion of the state's government spending is earmarked for procurement, prompting a closer examination of the procurement landscape in Haryana.

 

The budget serves as the primary funding source for procurement, with additional financial support derived from Public Sector Undertaking (PSU) entities. For the fiscal year 2023-24, Haryana's government budget stands at Rs.1,83,950 crore, reflecting a substantial 11.6% increase from the previous year's total budget expenditure of Rs.1,77,255.99 crore in the fiscal year 2022-23. In Haryana, 41 PSUs contribute to revenue generation through service provision, utilizing these funds for the procurement of goods, project implementation, and service acquisition. Noteworthy PSUs in this regard include Haryana Agro Industries Corporation Limited, Haryana Seeds Development Corporation Limited, and Haryana State Roads & Bridges Development Corporation Limited.

 

Out of the overall budget of Rs.1,83,950 crore, a specific allocation of Rs.62,851 crore is dedicated to committed expenditure, constituting 34.1% of the total budget. The committed expenditure of the Haryana Government on the revenue account primarily encompasses interest payments, salaries, pensions, and subsidies. A substantial portion of the remaining 65.9% is set aside for procurement. Moreover, PSUs contribute to procurement expenses. Assuming that procurement constitutes 10% of the GDP, the estimated procurement expenditure by the Haryana government is approximately Rs.1 lakh 10 thousand crore.

 

From the total Haryana government budget of Rs.1,83,950 crore, a portion of Rs.18,460 crore is designated as capital outlay for the fiscal year 2023-24. Government capital outlay encompasses expenditures related to equipment, machinery, land, warehouses, plant, buildings, furnishings and fittings, business automobiles, and software. Additionally, it covers civil works procurement for new roads, bridges, drainage systems, as well as extensive infrastructure projects such as dams, stadiums, airports, and harbors. Given that many government projects necessitate substantial investment, the government may secure loans from entities like the World Bank and the Asian Development Bank. The present capital outlay indicates a notable 26% increase from the preceding year.

 

The Haryana state government operates 44 departments dedicated to procuring various goods, services, and undertaking projects. Oversight of rural development initiatives in Haryana falls under the purview of entities such as the Department of Local Government, the Department of Rural Development, Rural Livelihoods Mission, and Panchayats Raj. At the local government level, municipalities and district administrations are responsible for managing procurement activities. As of 2023, Haryana comprises 11 municipal corporations, with Faridabad being the most extensive and Panchkula the smallest. The state is further divided into 22 districts, and Bhiwani holds the distinction of being the largest district in terms of area.

 

Haryana government has allocated 14% of its overall budget expenditure for education. This allocation covers a range of items, including providing educational kits, distributing uniforms, supplying stationery items, and furnishing books. Additionally, funds are earmarked for civil works, encompassing the construction and repair of school buildings, as well as the construction and maintenance of hostels. Oversight of these expenditures is carried out by agencies such as the Department of Higher Education and the Department of Medical Education and Research.

 

Within the health sector, Haryana has earmarked 6% of its total budget expenditure. These funds are used for various purposes, including the acquisition of medical equipment, provision of veterinary equipment, and procurement of pharmaceuticals. The allocation also extends to civil works, involving the construction and repair of medical hospital buildings, dispensary structures, and veterinary hospital facilities. Oversight and management of these initiatives are entrusted to agencies such as the Health Department and the National Health Mission.

 

In the agricultural sector, the Haryana government designates 5.2% of its overall budget expenditure. These funds have various applications, encompassing the procurement of seeds, distribution of fertilizers, acquisition of manures, and the purchase of drip irrigation equipment. Furthermore, provisions are made for civil works, involving the construction and restoration of agricultural buildings, greenhouses, and polyhouses. The implementation of these expenditures is supervised by agencies such as the Department of Agriculture and the Directorate of Agriculture and Farmers Welfare.

 

To ensure transparency, the government is mandated to embrace an open tendering process for procurement, widely disseminating these tenders across various web portals. As of December 7th, the Tendersniper portal indicates an excess of 4000 live tenders in Haryana . A comprehensive analysis of these tenders provides valuable insights into the government's prioritized areas of expenditure. The primary sector of substantial spending in Haryana is unit paver construction, featuring 264 tenders, predominantly released by the Haryana Government. The second-highest spending category is community hall construction, with 209 tenders, largely disclosed by the Haryana Government. Road construction secures the third position with 102 tenders, prominently advertised by the Haryana Board Corporation and the Haryana Government. Waste disposal plant represents the subsequent notable spending area, with 92 tenders, followed by compound wall construction with 89 tenders.

 

The Haryana government annually allocates significant funds, reaching tens of thousands of crores, for the acquisition of various goods, projects, and services. This procurement process involves an open tendering approach, allowing eligible vendors or suppliers to secure the tender through the submission of competitive prices and robust technical proposals.

 

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