Shimla, March 16 – H P economy shrinks by 1.2 per cent in FY 2022-23
Himachal Pradesh’ state economy growth squeezed by 1.2 per cent of the state , this was stated by the Chief Minister Sukhvinder Singh Sukhu in an economic survey tabled for the financial year 2022-23 laid in the assembly on Thursday. Sukhu who also holds the portfolio of finance said that state GDP would grow by over Rs 81439 cr( with growth of 6.4 per cent) during the current financial years which is 1.2 percent less increase in GDP of 7.6 percent in year 2021-22. The state GDP is tune to Rs 1,34576 Cr compared to Rs 1,26433 Cr under constant prices.
The Gross State Domestic Product (GSDP) at current prices, is estimated at ₹1,76,269 crore in FY2021-22 (FR) as against ₹1,55,251 crore in Second Revised (SR) estimate in FY2020-21, showing an increase of 13.5 per cent during the year. GSDP at constant (2011-12) prices in FY2021-22 (FR) is estimated at ₹1,26,433 crore against ₹1,17,555 crore in FY2020-21 (SR) registering a growth of 7.6 per cent during the year as against the negative growth rate of 3.0 per cent for the previous year.
The Per Capita Income (PCI) at current prices for FY2022-23 is estimated at ₹2,22,227 against ₹2,01,271 in FY2021-22, showing a growth of 10.4 per cent. The PCI of the country in FY2022-23 is ₹ 1,70,620. There is a steep rise in the PCI of the State from ₹87,721 in the FY2011-12 to ₹2,22,227 in FY2022-23, registering a growth rate of 153 per cent over 2011-12. The PCI of All India was ₹63,462 in the FY2011-12, has increased to ₹1,70,620 in the FY2022-23, registering a growth of 169 per cent compared to 2011-12. This implies that the PCI of the State grew lesser than the All-India PCI.
Also read: Negative growth of 6.2 percent exp in fy 20-21, per capita income too drops by 3.7 per
Sector-wise
The GSDP of any State is measured in terms of the economic contributions made by three key sectors-Primary, Secondary and Tertiary. The tertiary sector has been the highest contributor to State’s GVA, followed by the Secondary and Primary sectors. Economic Survey 2022-23 points that tertiary sector contributed 43.6 per cent of State’s GVA at current prices; followed by the secondary sector 42.7 per cent and the Primary sector 13.7 per cent.
The share of the Primary sector in the total GVA of the State remained largely constant from 2018-19 to 2022-23. During FY2022-23(AE) the GVA of Primary sector moved up to ₹16,717 crore as against ₹16,395 crore in FY2021-22 (FR) at constant prices. Agriculture and allied sectors registered a growth in constant price GVA, of -6.7 per cent, 4.9 per cent and 2.0 per cent in FY2020-21, FY2021-22 and FY2022-23, respectively. It is noteworthy that ‘Agriculture and Allied Sectors’, which are the backbone of State economy, employ 57.03 per cent of the population of the State. Therefore, its economic success is crucial to improving the living standards in Himachal Pradesh.
As per advance estimates for FY2022-23 the GVA of the secondary sector is estimated at ₹60,444 crore against ₹56,408 crore for FY2021-22(FR) at constant (2011-12) prices, expected to register a growth rate of 7.2 per cent over the previous year. Industry Sector (manufacturing) at Constant (2011-12) prices as per the advance estimates for the FY2022-23 is expected to register a growth rate of 6.7 per cent and is estimated at ₹43,625 crore as against ₹40,898 crore in FY2021-22(FR). Electricity, Gas, Water and water supply Sector, have registered impressive growth rates of 7.2 per cent. Construction sector is expected to register a growth rate of 9.5 per cent and is estimated at ₹9,124 crore as against ₹8,335 crore in FY2021-22.
The tertiary sector share of State’s value added is continuously increasing and is therefore, one of the most important sectors in State’s economy. Its share in the State’s nominal GVA increased from 42.0 per cent in 2018-19 to 43.6 per cent in the FY2022-23. The Services sector has a significant and fast growing share in the State GVA.
Service sector comprises of Trade, Hotels and Restaurants, Transport by Other Means and Storage, Supra Regional sectors (Railways, Communications and Banking and Insurance), Real Estate, Ownership of Dwellings & Professional Services, Public Administration and Other Services sectors. The advance estimates for the FY2022-23 at Constant (2011-12) prices for Services Sector is estimated at ₹49,527 crore as against ₹46,350 crore in FY2021-22(FR) with a growth rate of 6.9 per cent over last year. Trade and Repair services (2.3 per cent), Hotels and Restaurants (26.8 per cent) jointly registered a growth rate of 6.7 per cent, Transport, Storage, and Communications registered a growth rate of 10.3 per cent, Banking, Real Estate & Ownership of Dwellings and Public Administration registered a growth rate of 4.5 per cent, 3.4 per cent respectively.
Revenue expenditure
Budget estimates revenue expenditure for FY2022-23 (BE) to be ₹ 40,279 compared to ₹ 37,034 for the FY2021-22 (RE) showing a growth rate of 8.76 per cent. Revenue expenditure is estimated to be 20.61 per cent of GSDP for FY2022-23(BE). Budget estimates capital expenditure to be ₹5,647 crore for FY2022-23 (BE) compared to ₹7,099 crore for FY2021-22 (RE) showing a negative growth of -20.45 per cent and it is 10.99 per cent of total expenditure during 2022-23 (BE). The other components i.e. debt expenditure is 10.59 per cent of total expenditure.
The Government spends major chunk of its expenditure on revenue expenditure. During FY2022-23 (BE) it is estimated that 78 per cent of the total budget spending will be on Revenue Expenditure. The composition of revenue expenditure shows that 57 per cent of total expenditure is likely to be spent on salary, pension, interest payment and subsidies in FY2022-23 (BE). Expenditure on salary, pension and interest payments is committed expenditure in nature and that is limited headroom for creation of additional fiscal space. The total committed expenditure is ₹28,059 crore which is 54.63 per cent of total expenditure and 14.36 per cent of the GSDP for the FY 2022-23 (BE)
The growth in Salary expenditure over the previous year was 14.25 per cent in FY2022-23 (BE) compared to previous year’s 9.23 per cent. Pension expenditure is expected to increase by 19.85 per cent in FY2022-23 (BE), compared to previous year’s 6.77 per cent. Growth in interest payments was 7.45 per cent in FY2021-22 (RE) and budget estimates was 6.24 per cent in FY2022-23 (BE). Growth of subsidy expenditure is estimated to be 2.44 per cent in FY2022-23 (BE) compared to -1.10 per cent in the previous year.
The debt ratio to GDP as % age in 2020-21 remains at 39.29 percent. However the economic survey did not provide the latest figures (2022-23).
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