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Arunachal Pradesh State Budget 2008-09 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Arunachal Pradesh FY 2008-09

Arunachal Pradesh State Budget 2008-09 Budget at a Glance

Total Receipts

Rs 3,800 crore

+18.8%

Total Expenditure

Rs 4,550 crore

+16.1%

Fiscal Deficit

7.5%

Rs 450 crore

Capital Expenditure

Rs 950 crore

+15.9%

Tax Revenue

Rs 210 crore

+16.7%

Interest Payments

Rs 260 crore

6% of expenditure

Arunachal Pradesh Revenue Receipts 2008-09

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 210 crore (36.2%)
Non-Tax Revenue
Rs 370 crore (63.8%)

Arunachal Pradesh Expenditure Breakdown 2008-09

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 79.1%
Capital Expenditure 20.9%

Fiscal Deficit as % of GSDP — Arunachal Pradesh 2008-09

The fiscal deficit for Arunachal Pradesh in 2008-09 is 7.5% of GSDP (Rs 450 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Arunachal Pradesh's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 260 crore consume 5.7% of total expenditure.

Arunachal Pradesh State Budget 2008-09 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 4,600 crore100%
1. Revenue ReceiptsRs 3,800 crore82.6%
a. Own Tax RevenueRs 210 crore4.6%
b. Non-Tax RevenueRs 370 crore8.0%
B. Total ExpenditureRs 4,550 crore100%
1. Revenue ExpenditureRs 3,600 crore79.1%
2. Capital ExpenditureRs 950 crore20.9%
of which: Interest PaymentsRs 260 crore5.7%
C. Fiscal DeficitRs 450 crore7.5% of GSDP

Source: Arunachal Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.

Arunachal Pradesh Budget 2008-09 Analysis & Highlights

Key Highlights

  • Total expenditure rises to Rs 4,550 crore, a 16.1% increase driven by pay commission and infrastructure
  • Revenue receipts at Rs 3,800 crore with own tax revenue at Rs 210 crore
  • Revenue deficit at Rs 200 crore as Sixth Pay Commission costs inflate the salary bill
  • Fiscal deficit at 7.5% of GSDP (Rs 450 crore), among the highest nationally
  • Capital expenditure at Rs 950 crore with road and border infrastructure as priorities
  • Total outstanding debt at Rs 3,100 crore with debt-to-GSDP at 51.7%
  • Interest payments at Rs 260 crore climb with the growing debt stock
  • Market borrowings at Rs 160 crore supplement Central loans for infrastructure
  • GSDP grows to Rs 6,000 crore with government spending as the primary growth driver
  • Non-tax revenue at Rs 370 crore includes forestry and early hydropower royalties
  • Sixth Pay Commission implementation adds substantially to establishment costs
  • Trans-Arunachal Highway construction begins in earnest with BRO as lead agency

Compare Arunachal Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2004-052005-062006-072007-082008-09
Total Expenditure———Rs 3,920 croreRs 4,550 crore
Revenue Receipts———Rs 3,200 croreRs 3,800 crore
Capital Expenditure———Rs 820 croreRs 950 crore
Fiscal Deficit (% GSDP)———6.1%7.5%
Own Tax Revenue———Rs 180 croreRs 210 crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Arunachal Pradesh State Budget 2008-09

The Arunachal Pradesh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Arunachal Pradesh Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Arunachal Pradesh with other states

Side-by-side comparison of fiscal metrics across Indian states