Published: Mon, March 12, 2018
Medicine | By Douglas Stevenson

Economic Survey pegs Maharashtra's GSDP at 7.33%

Economic Survey pegs Maharashtra's GSDP at 7.33%

The Maharashtra Budget 2018-19 will be presented today. Budget themes for the services and industry sectors were on expected lines given the State's ballooning debt, experts felt.

According to the latest report of CAG, the capital expenditure up to January end in 2017-18 fiscal is '17,805.79 crore as against the capital expenditure of '17,276.93 crore for the same period up to January in 2016-17 Budget.

Shailesh Haribhakti, who recently retired as chairman, National Pension Scheme Trust and is non-executive chairman at Larsen & Toubro (L&T) Finance Holding, said, "It's disappointing that despite so much devolution of resources to the States, Maharashtra has remained saddled with debt for so many years, and continues to face mounting revenue and fiscal deficit". However, during 2017-18 the agriculture and allied sectors are expected to register (-) 8.3 percent due to fewer rains (84.3 percent of normal rains) as compared to past year.

The 2.7 per cent fall in the Gross State Domestic Product (GSDP) is attributed to minus 8.3 per cent growth in agriculture and allied services due to comparatively less rains (83 per cent of the normal monsoon).

- Maharashtra's per capita income is expected to be at Rs 1,80,596 and it is the leading state among major states in the country.

Meanwhile, the deteriorating condition of the state's economy has also reflected in the state's increasing debt stock.

- The fiscal limit stipulated under Consolidated Fiscal Reform in 2017-18 is 22.2, while in 2016-17 it was 22.1. Revenue expenditure is set to rise to Rs 3 lakh crore from Rs 2.7 lakh crore a year ago. In 2017-18, the state also received Rs 2,100 crore more than expected from stamp and registration fees, and Rs 1,012 crore more than estimated as grant-in-aid from the Centre.

- During 2017, 354 projects with an expected investment of Rs 48,581 crore and proposed employment of 0.27 lakh were registered and 24 projects with an expected investment of Rs 1,582 crore and proposed employment of 0.2 lakh were implemented.

- The average cost of borrowing is expected to be 8.4 percent in 2017-18. The total state GST receipts were Rs 30,138 crore up to December 2017, the survey said.

While he made a provision of Rs 10,828 crore for road development, the finance minister said the government was evaluating a proposal to ascertain financial participation of local bodies and authorities in such projects.

During Kharif season of 2017, the sowing was completed on 150.45 lakh hectares with a minor increase over the previous year.

Like this: