White paper on state finances tabled in Maharashtra Assembly
Mumbai: A white paper on state finances, tabled in Maharashtra Assembly today, says that revenue had increased at 16 per cent annually in the last decade while the GSDP was between 9.9 per cent and 10.7 per cent which is balanced and satisfactory, compared to other developed states.
It also said that accumulated debt in the last ten years increased from Rs 1,09,167 crore to Rs 3,02,578 crore.
“Even though the rise in debt is substantial, the percentage of debt has come down from 266.1 per cent to 167.4 per cent as compared to the increase in state’s revenues,” it added.
The observations come in the backdrop of BJP stating that it has inherited a bankrupt state and the Congress-NCP rule of 15 years had seen Maharashtra touching a low in terms of finances.
Similarly, the fiscal deficit was maintained at three per cent (except in 2009-10) as compared to the state income. The average interest on state’s liabilities was 8 per cent while the rate of revenue growth was 16 per cent, respectively.
The paper said that even though the state’s revenue increased satisfactorily, there was substantial rise in revenue expenditure.
This shows that the state was unable to maintain the revenue balance which is a worrying factor.
As per revised estimates of 2014-15, the revenue deficit was Rs 13,883 crore.
The paper said increased revenue expenditure resulting in fiscal imbalance, insufficient capital investment and improper planning are challenges before the government.
The ratio of paying interest against the revenue income was 13.4 per cent, it added.