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Arunachal Pradesh State Budget 2020-21 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Arunachal Pradesh FY 2020-21

Arunachal Pradesh State Budget 2020-21 Budget at a Glance

Total Receipts

Rs 12,000 crore

+4.3%

Total Expenditure

Rs 14,000 crore

+7.7%

Fiscal Deficit

6.9%

Rs 2,000 crore

Capital Expenditure

Rs 2,500 crore

+13.6%

Tax Revenue

Rs 1,200 crore

-7.7%

Interest Payments

Rs 800 crore

6% of expenditure

Arunachal Pradesh Revenue Receipts 2020-21

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1,200 crore (30.0%)
Non-Tax Revenue
Rs 2,800 crore (70.0%)

Arunachal Pradesh Expenditure Breakdown 2020-21

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 82.1%
Capital Expenditure 17.9%

Fiscal Deficit as % of GSDP — Arunachal Pradesh 2020-21

The fiscal deficit for Arunachal Pradesh in 2020-21 is 6.9% of GSDP (Rs 2,000 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 800 crore consume 5.7% of total expenditure.

Arunachal Pradesh State Budget 2020-21 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 15,000 crore100%
1. Revenue ReceiptsRs 12,000 crore80.0%
a. Own Tax RevenueRs 1,200 crore8.0%
b. Non-Tax RevenueRs 2,800 crore18.7%
B. Total ExpenditureRs 14,000 crore100%
1. Revenue ExpenditureRs 11,500 crore82.1%
2. Capital ExpenditureRs 2,500 crore17.9%
of which: Interest PaymentsRs 800 crore5.7%
C. Fiscal DeficitRs 2,000 crore6.9% of GSDP

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

Arunachal Pradesh Budget 2020-21 Analysis & Highlights

Key Highlights

  • Total expenditure at Rs 14,000 crore despite COVID-19, sustained by enhanced Central support
  • Revenue receipts at Rs 12,000 crore with own tax revenue declining to Rs 1,200 crore
  • Revenue deficit at Rs 500 crore as Central COVID grants offset tax collection shortfall
  • Fiscal deficit at 6.9% of GSDP (Rs 2,000 crore) driven by pandemic borrowing expansion
  • Capital expenditure at Rs 2,500 crore as infrastructure construction continues through the pandemic
  • Market borrowings at Rs 2,200 crore under enhanced Atmanirbhar Bharat limits
  • Total outstanding debt jumps to Rs 9,200 crore with debt-to-GSDP at 31.7%
  • Interest payments at Rs 800 crore grow with the surging borrowing programme
  • GSDP estimated at Rs 29,000 crore with infrastructure construction as the primary economic driver
  • Non-tax revenue at Rs 2,800 crore from Central transfers and hydropower royalties
  • China border tensions post-Galwan intensify strategic infrastructure investment in Arunachal
  • COVID-19 impact moderated by the state low population density and relative isolation

Compare Arunachal Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2016-172017-182018-192019-202020-21
Total ExpenditureRs 13,000 croreRs 14,000 crore
Revenue ReceiptsRs 11,500 croreRs 12,000 crore
Capital ExpenditureRs 2,200 croreRs 2,500 crore
Fiscal Deficit (% GSDP)5.4%6.9%
Own Tax RevenueRs 1,300 croreRs 1,200 crore

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

Understanding Arunachal Pradesh State Budget 2020-21

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