Jharkhand State Budget 2006-07 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Jharkhand FY 2006-07
Jharkhand State Budget 2006-07 Budget at a Glance
Total Receipts
Rs 9,500 crore
+15.9%
Total Expenditure
Rs 13,800 crore
+15.0%
Fiscal Deficit
3.5%
Rs 2,200 crore
Capital Expenditure
Rs 2,600 crore
+18.2%
Tax Revenue
Rs 3,800 crore
+18.8%
Interest Payments
Rs 1,500 crore
11% of expenditure
Jharkhand Revenue Receipts 2006-07
Own tax revenue vs non-tax revenue breakdown
Jharkhand Expenditure Breakdown 2006-07
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Jharkhand 2006-07
The fiscal deficit for Jharkhand in 2006-07 is 3.5% of GSDP (Rs 2,200 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. Jharkhand is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 1,500 crore consume 10.9% of total expenditure.
Jharkhand State Budget 2006-07 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 14,800 crore | 100% |
| 1. Revenue Receipts | Rs 9,500 crore | 64.2% |
| a. Own Tax Revenue | Rs 3,800 crore | 25.7% |
| b. Non-Tax Revenue | Rs 2,100 crore | 14.2% |
| B. Total Expenditure | Rs 13,800 crore | 100% |
| 1. Revenue Expenditure | Rs 11,200 crore | 81.2% |
| 2. Capital Expenditure | Rs 2,600 crore | 18.8% |
| of which: Interest Payments | Rs 1,500 crore | 10.9% |
| C. Fiscal Deficit | Rs 2,200 crore | 3.5% of GSDP |
Source: Jharkhand State Budget Documents via PRS India. All figures in Indian Rupees.
Jharkhand Budget 2006-07 Analysis & Highlights
Key Highlights
- Total expenditure rose to approximately Rs 12,800 crore, a 22% increase over 2005-06 actuals.
- Mining royalties surged on the back of the global commodity boom โ coal and iron ore prices rising sharply.
- Political instability persisted with Madhu Koda heading a JMM-backed independent government.
- Naxal insurgency remained acute โ Maoists called Jharkhand bandhs disrupting economic activity regularly.
- Central plan assistance increased under the Backward Regions Grant Fund targeting Jharkhand's left-wing extremism districts.
- Education spending rose to Rs 2,800 crore with Sarva Shiksha Abhiyan driving primary school construction.
- Health allocation at Rs 1,000 crore โ NRHM (National Rural Health Mission) began channelling central funds.
- Capital expenditure at Rs 2,200 crore focused on roads and power transmission infrastructure.
- Tribal sub-plan allocation at Rs 1,100 crore remained underutilised due to governance capacity constraints.
- Steel and mining boom in Jamshedpur-Chaibasa belt attracted private investment proposals.
- Deoghar and Baidyanath Dham pilgrim infrastructure received modest tourism allocation.
- State's share of central taxes increased under the 12th Finance Commission recommendations.
- Jharkhand Industrial Policy 2001 failed to attract major investments due to land acquisition and law-and-order challenges.
Compare Jharkhand Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 12,000 crore | Rs 13,800 crore |
| Revenue Receipts | โ | โ | โ | Rs 8,200 crore | Rs 9,500 crore |
| Capital Expenditure | โ | โ | โ | Rs 2,200 crore | Rs 2,600 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.5% | 3.5% |
| Own Tax Revenue | โ | โ | โ | Rs 3,200 crore | Rs 3,800 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Jharkhand State Budget 2006-07
The Jharkhand 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.
Jharkhand 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.
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Compare Jharkhand with other states
Side-by-side comparison of fiscal metrics across Indian states