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HP’s growth rate declines, state witnesses hike in per capita income

Chief Minister Jai Ram Thakur informed about this while laying the Economic Survey for 2019-20 in the Assembly on Thursday.

SNS | Shimla |

Amid global slowdown, the hill state of Himachal Pradesh too seemed to be affected by the phenomena as the growth rate is expected to decline to 5.6 percent in 2019-20 however, the per capita income in the state has increased to Rs 1,95,255.

Chief Minister Jai Ram Thakur informed about this while laying the Economic Survey for 2019-20 in the Assembly on Thursday.

The economic survey had pegged the growth rate at 5.6 percent which was the lowest in the last four years as the growth rate in 2018-19 was 7.1 percent, 6.8 percent in 2017-18 and 7 percent in 2016-17.

Thakur said the per capita income had increased by Rs 12,147 (6.6 percent) and has been estimated at Rs 1,95,255 as compared to Rs 1,83108 in 2018-19.

The gross state domestic product (GSDP) in 2019-20 is projected at Rs 1,65,472 crore as compared to Rs 1,53,845 crore in 2018-19 while it was Rs 1,36,542 in 2017-18 and Rs 1,25,122 crore in 2016-17.

Agriculture and allied sectors which is the main occupation of the people of Himachal and has important place in economy of the state.

The decline in growth is attributed to this sector as the Gross Value Added (GVA) at current prices has declined from 15.35 percent in 2014-15 to 12.73 percent in 2019-20. Share of crops, share of forestry and logging has also declined from 2014-15 to 2019-20, however, the share of livestock and fishing has marginally increased.

The share of agriculture and allied sectors in the total GVA has been declining on account of relatively higher growth performance of non-agricultural sectors.

The 2018-19 remained an average year as food grain production was 16.92 lakh metric tonne (MT) as compared to 15.81 lakh MT in previous fiscal.

The production of potato was 1.87 lakh MT in 2018-19 against 1.99 lakh MT in 2017-18. The production of vegetables was 17.22 lakh MT compared to 16.92 lakh MT in previous fiscal.

As Himachal is a major tourism destination, the contribution of the tourism sector to the state GDP is about 7 percent which is quite significant.

Fiscal deficit is estimated at 4.44 percent of the GSDP in 2019-20 as compared to 5.06 percent in 2018-19. Revenue and Primary deficit as percent to GSDP is expected to decrease in 2019-20.

As per the survey, the expenditure on social services has increased from Rs 7,973 crore in 2014-15 to Rs 15,156 crore in 2019-20 (Budget Estimate), witnessing an increase of 1.48 percent in 2014-15 to 7.68 to 9.16 per cent in 2019-20.

The expenditure on education, as percentage of GSDP increased from 4.12 per cent to 4.75 per cent between 2014-15 and 2019-20.

Similarly, expenditure on health increased from 1.25 per cent to 1.66 percent during the same period as percentage of GSDP.

The total revenue receipts are estimated at Rs 33,747 crore in 2019-20 compared to Rs 31189 crore in 2018-19 showing an increase of 8.20 percent, the survey states.

The state’s own taxes rose to 15.69 percent in 2019-20 which is estimated at Rs 7921 crore compared to Rs 6847 crore in 2019-19 and Rs 7108 crore in 2017-18.

The inflation fell from 4.7 per cent in 2018-19 to 1.5 per cent during 2019-20, the survey added.