HP Economic Survey 2020-21 [Gist of Chapter-2]

Compiled by: Aditya Chauhan [Executive Secretary]

Dept of Urban Development, Govt. of HP

Economy, Public Finance And Taxation

Five year plan History

• HP growth fastest in 7^th plan- 8.8 %
• India growth fastest in 11^th plan- 8%

12th Five Year Plan 2012-17

• HP growth rate was 7.2%
• India growth rate was 7.1 %

Stats Of Sectors Of State Economy

Primary sector – Agriculture and allied sector support 60% of state population

1. It registered growth of 18.3% in 2019-20
2. In Himachal Pradesh, Horticulture is no longer a sub sector of agriculture sector, it has crossed agriculture in terms of value addition.
3. The livestock sector has emerged as an alternative and dependable source of income generation

Secondary sector– registered a growth rate of 0.1 per cent in 2019-20

Tertiary sector– It registered a growth of 7.7 per cent in 2019-20

Public Finance-

a. Total Revenue receipt 38439 crore

1. Tax revenue– 15326 crore(9.81% of GDP)
2. Non tax– 2410 crore

b. Total expenditure 49131 croe

1. Revenue Expenditure 39123 crore
2. Capital Expenditure- 6255 core
3. 57% of revenue expenditure spent on salary pension interest and subsidies

c. Fiscal Defecit– 4.65%- likely to increase further due to Covid pandemic

d. Tax collection

1. GST- 2370 crore
2. State excise- 1136 crore
3. VAT 945 crore
4. other taxes 184 crore
5. Passengerand goods tax 59 crore

e. Budget changes-

1. abolition of categorisation of budget in Plan and non plan head
2. Formulation of annual development budget
3. SC sub plan renamed as SC development programme
4. Tribal area sub plan renamed as Tribal area Development programme

Read also: HP Economic Survey 2020-21 [Gist of Chapter-3]