Finance Commission reviews state’s economic progress, future plans

The 16th Finance Commission, chaired by Dr Arvind Panagariya, met Chief Minister Nayab Singh Saini on Monday to discuss financial matters and improve resource allocation for the state’s development.

A presentation outlined the state’s journey since its formation in 1966, showcasing its transformation into a key contributor to the country’s growth. The presentation highlighted the state’s progress towards equitable fiscal federalism, supported by strong economic fundamentals and a forward-looking roadmap.

The Commission was informed that Haryana’s Gross State Domestic Product (GSDP) for 2024–25 is estimated at Rs 6,77,033 crore. Haryana also ranks second among states for per capita income at Rs 3,53,182. The state is notable for being the first in India to procure all crops at Minimum Support Price (MSP).

Haryana’s growth efforts were highlighted, with the adoption of a unique income limit of Rs 1.80 lakh for identifying Below Poverty Line (BPL) families. Health-wise, 47 lakh families — covering 61.84 per cent of Haryana’s population — are enrolled in the Ayushman Bharat and CHIRAYU health insurance schemes.

Despite receiving a lower share in Central Devolution, Haryana has kept its fiscal deficit and liabilities within the targets set by the Finance Commission. The state ranks 5th in India’s overall GST collections for 2024-25 and is 1st in GST Collection Per Capita among major states. Haryana’s efficient tax administration has earned it national recognition.

The state’s development efforts were acknowledged, with Haryana advancing from the ‘Performer’ to the ‘Front Runner’ category in the 2023-24 Sustainable Development Goals (SDG) India Index, achieving a national rank of 13.

Looking ahead, Haryana’s vision for 2047 includes transforming the state into a $1 trillion economy and creating 50 lakh jobs. Key initiatives include establishing a Fund of Funds to boost the start-up ecosystem, launching an Innovation Hub and setting up the Haryana AI Mission to train 50,000 youth in emerging sectors. Additionally, the state plans to create the Sankalp Authority to empower youth and combat drug abuse, alongside the Department of Future to foster anticipatory governance and innovation.

Haryana Tribune