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Jharkhand State Budget 2007-08 Analysis

Actuals

Total 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

Tax Revenue
Rs 4,500 crore (64.3%)
Non-Tax Revenue
Rs 2,500 crore (35.7%)

Jharkhand Expenditure Breakdown 2007-08

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 80.0%
Capital Expenditure 20.0%

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

ParticularsAmount% of Total
A. Total ReceiptsRs 17,500 crore100%
1. Revenue ReceiptsRs 11,200 crore64.0%
a. Own Tax RevenueRs 4,500 crore25.7%
b. Non-Tax RevenueRs 2,500 crore14.3%
B. Total ExpenditureRs 16,000 crore100%
1. Revenue ExpenditureRs 12,800 crore80.0%
2. Capital ExpenditureRs 3,200 crore20.0%
of which: Interest PaymentsRs 1,900 crore11.9%
C. Fiscal DeficitRs 2,500 crore3.3% 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

Metric2003-042004-052005-062006-072007-08
Total Expenditureโ€”โ€”โ€”Rs 13,800 croreRs 16,000 crore
Revenue Receiptsโ€”โ€”โ€”Rs 9,500 croreRs 11,200 crore
Capital Expenditureโ€”โ€”โ€”Rs 2,600 croreRs 3,200 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”3.5%3.3%
Own Tax Revenueโ€”โ€”โ€”Rs 3,800 croreRs 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.

Compare Jharkhand with other states

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