Maharashtra mulling to implement ‘4-way formula’ to boost GDP
Mumbai : In a bid to achieve an additional 2 per cent growth in GDP, the Maharashtra Finance Department is mulling to implement a ‘4-way formula’ in the coming years.
This will help in taking the GDP to double-digit, from the current 8 per cent, state Finance Minister Sudhir Mungantiwar said.
Elaborating on the formula, he said the expenses on unproductive sectors will be reduced or stopped while expenses on productive sectors would be increased, leakages in tax mechanisms would be sorted out and the state will promote multi-tasking manpower.
“Though we proudly say that India is an agro-based country where more than 68 per cent population depends on agriculture, share of export of India’s agro-based products is a mere 0.026 per cent,” he said.
The country lags behind Brazil, whose share of agro-based export is 8.37 per cent, he said.
“We are planning to increase the share of the agriculture sector while promoting agro-base businesses. It will also increase the growth of state’s GSDP (Gross State Domestic Product) by 2 per cent,” he said.
Maharashtra’s current annual growth is between 8 and 8.25 per cent and a rise of 2 per cent would mean that the state’s annual income would go up by Rs 50,000 crore, he said.
Mungantiwar said his department is focussing on four major steps that will increase state’s income and GSDP.
“The state is considering promoting agro-based processing industries in various regions of the state, like oranges in Vidarbha, cotton in Vidarbha and Khandesh, cashew nuts in Konkan and in similar way, products in western Maharashtra and Marathwada region,” he said.
Mungantiwar said that processing units will get a value-added status for agro-products and it will help farmers to increase their income and the state will get foreign currency through exports.
He also said that finding leakages in tax systems is a major challenge before the state.
“We do not have any proposal to increase taxes on any items, but will stop leakages, particularly in Sales Tax system, to increase our income,” he said.
Elaborating on the term multi-tasking manpower, the minister said, “Globally, manpower is utilised in a systematic way where a single person performs all works, including skilled work assigned to him, as well as office work. We are considering bringing such a policy in Maharashtra as the state has limitation to appoint manpower,” he said.
Meanwhile, the department will hold a conference in Mumbai next month in which finance experts, advisors, bureaucrats and journalists who write on financial issues, and former finance ministers will be invited.
There will be discussions on new resources of income and what should be expected in the next state budget.