Financial conditions of Rajasthan: Chief Minister Ashok Gehlot has not imposed any new tax (New Tex) in his budget, while the state’s economy is running completely on credit.
The government may have to borrow to pay salaries to employees and to run everyday expenses. There are clear indications from the Chief Minister’s budget speech that the state government will have to depend on the central government to run the expenditure. Keeping the annual financial statement for the year 2020-21 on the Table of the House, Chief Minister Ashok Gehlot said that financial management will be done along with using the additional loan limit allowed by the Central Government to meet the shortfall. 14 thousand 94 lakh crore has been reduced by the Center in the amount received by the state for the year 2020-21. In such a situation, the financial managers of Gehlot government have a big challenge to improve the financial health of the government.
The entire economy of Rajasthan is running on credit account. So far, the government has borrowed 40 thousand crore rupees from the market to run the daily expenses. This is about 14 thousand crores more than the same period last year. In the budget estimates for 2020-21, the Gehlot government had estimated fiscal deficit at Rs 33,922 crore. By the end of December, it has increased by 18 percent to reach Rs 40,190 crore. CM Ashok Gehlot has called upon the parties and the opposition to work together while presenting the budget. The Chief Minister said that the opposition should cooperate. Behind the central government Provide financial help to the government.Fiscal deficit crosses 47 thousand crores
According to estimates, by the end of the financial year, the fiscal deficit will cross 47 thousand 652 crore 77 lakh. This is 3.98 percent of the state’s gross domestic product. Chief Minister Ashok Gehlot while presenting the budget said in the Assembly that the amount received by the state for the year 2020-2021 has been reduced by the Center by 14 thousand 94 lakh crore. Besides, a provision of 40 thousand 106 crore 81 lakh has been made for the coming year. This is 6 thousand 779 crore 36 lakh less than the initial estimate for the year 2020-21.