With the state’s revenue deficit almost reaching Rs2,300 crore due to a drastic fall in revenue collections, Maharashtra’s debt burden has touched Rs1.54 lakh crore this fiscal.
With the state’s revenue deficit almost reaching Rs2,300 crore due to a drastic fall in revenue collections, Maharashtra’s debt burden has touched Rs1.54 lakh crore this fiscal.
Also, with expenditure on employees reaching 49% and a revenue deficit of 5% as a target, development work in the state is expected to take a hit.
The global recession has affected revenue collections in the state adversely, with professional, stamp and registration, excise and vehicle taxes showing a major decline. The government has registered a revenue of Rs39,749 crore, against the Rs41,404 targeted, resulting in a deficit of Rs1,655 crore by the end of January 2009. With this rate, the expected fall in revenue may touch Rs2,300 crore this fiscal.
With debt at Rs1.54 lakh crore, the government is annually paying Rs12,000 crore as interest and Rs10,000 crore towards repayment.
After accepting the implementation of the recommendations made by the Sixth Pay Commission, nearly 50% of state revenue will be spent on employee salaries. This amount goes up to Rs31,600 crore, from the earlier Rs 22,500 crore. According to finance department officials, salary expenditure should not cross 35% of the state’s revenue.
However, finance minister Dilip Walse-Patil stated that developmental works would not be affected at any cost. “Like the US government, the Central government also is expected to formulate a bailout package to fight the recession. After that, incentives and concessions to realty, hotel and other sectors may be thought of,” he said.
Walse-Patil said that Maharashtra was only the fourth state after UP, Uttaranchal and Haryana, to implement the Sixth Pay Commission.
“Employees are expected to improve on their performances, and we have asked all departments to monitor it after implementing the Sixth Pay Commission recommendations,” Walse-Patil said.
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