Gujarat government is overestimating its spending and earning capacities. Had it spend as sought in the budget estimates of 2016-17, the deficits would have been wider. This fact gets hidden as the government spends much less than estimates. While this may keep deficits under control, the welfare of the masses gets severely compromised, say experts.
While presenting the budget proposals, for the fiscal 2018-19, state finance minister Nitin Patel also published the actual financials for the fiscal 2016-17. While presenting the budget two years ago, then finance minister Saurabh Patel estimated a Revenue Surplus of Rs 3,236.08 crore. This was revised higher at Rs 3,511.64 crore last year and finally shot up to Rs 5,946.98 crore. This is desspite the fact that actual revenue receipts (from taxes and central government) dropped by Rs 6,524.17 crore compared to the budget estimates. This is because the government cut down on revenue expenditure by Rs 9,235.07 crore.
Same is the case with capital account. The government estimated receipts of Rs29,796.90 crore while presenting the budget, raised it to Rs30,026.95 crore in revised estimates but actually dropped to Rs28,074.13 crore meaning that the government was able to raise lesser money than initially estimated. On expenditure side, the final expenditure was lower by Rs 4,856.35 crore than the actual estimates. While it reduced the deficit on capital account from by Rs 3,133.58 crore.
This means that expenditure on critical social and economic segments was curtailed. Spending dropped by Rs1,393.74 crore on education, sports, art and culture; by Rs 758.75 crore on water supply, sanitation, housing and urban development; by Rs 446.61 crore on health and family welfare; by Rs374.60 on social welfare and nutrition to name a few.
"This indicates that critical segment of economy get lower share directly affecting the welfare of the masses. If the amount claimed in the budget was spent, the deficits would have been much higher," said Mahender Jethmalani, economist at Ahmedabad-based Patheya Budget Centre.
In fact lower spending in critical parameters could be one of the key reasons of the discontent in the masses, particularly in the rural areas.
City-based economist Hemantkumar Shah said that government's inability to spend as per the budget estimates is a clear indication that it is not being able back its schemes and programs with adequate funding. "Inspite of fall in spending and lower fiscal deficit, the public debt is rising, and that is a dangerous sign," Shah told DNA. Bhagyesh Soneji, chairperson of ASSOCHAM – Gujarat said that ability to spend less is and indication that the government is clueless how to execute the programs. "So while the government is collecting higher taxes from the tax payers, not sufficient money is reaching the intended beneficiary," said Soneji.
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 "Gujarat Budget 2018")
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This means that expenditure on critical social and economic segments was curtailed. Spending dropped by Rs1,393.74 crore on education, sports, art and culture; by Rs 758.75 crore on water supply, sanitation, housing and urban development; by Rs 446.61 crore on health and family welfare; by Rs374.60 on social welfare and nutrition to name a few.
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