Jharkhand State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Jharkhand FY 2007-08
Jharkhand State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 11,200 crore
+17.9%
Total Expenditure
Rs 16,000 crore
+15.9%
Fiscal Deficit
3.3%
Rs 2,500 crore
Capital Expenditure
Rs 3,200 crore
+23.1%
Tax Revenue
Rs 4,500 crore
+18.4%
Interest Payments
Rs 1,900 crore
12% of expenditure
Jharkhand Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Jharkhand Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Jharkhand 2007-08
The fiscal deficit for Jharkhand in 2007-08 is 3.3% of GSDP (Rs 2,500 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 1,900 crore consume 11.9% of total expenditure.
Jharkhand State Budget 2007-08 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 17,500 crore | 100% |
| 1. Revenue Receipts | Rs 11,200 crore | 64.0% |
| a. Own Tax Revenue | Rs 4,500 crore | 25.7% |
| b. Non-Tax Revenue | Rs 2,500 crore | 14.3% |
| B. Total Expenditure | Rs 16,000 crore | 100% |
| 1. Revenue Expenditure | Rs 12,800 crore | 80.0% |
| 2. Capital Expenditure | Rs 3,200 crore | 20.0% |
| of which: Interest Payments | Rs 1,900 crore | 11.9% |
| C. Fiscal Deficit | Rs 2,500 crore | 3.3% of GSDP |
Source: Jharkhand State Budget Documents via PRS India. All figures in Indian Rupees.
Jharkhand Budget 2007-08 Analysis & Highlights
Key Highlights
- Total expenditure reached approximately Rs 14,500 crore amid the final phase of the global commodity boom.
- Madhu Koda government continued โ later revealed as one of India's most corrupt state administrations.
- Mining royalties peaked at Rs 2,500 crore driven by record coal and iron ore prices globally.
- Sixth Pay Commission implementation began, sharply increasing salary expenditure across state government.
- Naxal activity remained elevated โ several ambushes on security forces in Latehar and West Singhbhum.
- Education spending at Rs 3,200 crore with SSA constructing thousands of school buildings across the state.
- NRHM-driven health spending reached Rs 1,200 crore, deploying ASHAs across tribal villages.
- Capital expenditure at Rs 2,500 crore โ road and bridge construction the primary focus.
- Industrial MoUs worth Rs 3.5 lakh crore signed at investor summits but virtually none materialised.
- Power generation capacity remained critically short โ load shedding routine across the state.
- Deforestation accelerated from mining expansion and encroachment in Palamau and Hazaribagh.
- State planning capacity remained weak โ no credible five-year development plan produced since statehood.
- Urban development in Ranchi began with ring road planning and IT park proposals.
Compare Jharkhand Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 13,800 crore | Rs 16,000 crore |
| Revenue Receipts | โ | โ | โ | Rs 9,500 crore | Rs 11,200 crore |
| Capital Expenditure | โ | โ | โ | Rs 2,600 crore | Rs 3,200 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.5% | 3.3% |
| Own Tax Revenue | โ | โ | โ | Rs 3,800 crore | Rs 4,500 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Jharkhand State Budget 2007-08
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