However, development projects implemented through budgetary support may suffer due to 30% cut
Notwithstanding the Rs 34,000 core crop loan waiver scheme, the Maharashtra government has projected that the implementation of a slew of development projects worth Rs 2 lakh crore across the state will be carried out smoothly. This is because these projects don’t have the government exposure as the funds are being mobilized by the government undertakings through internal accruals and multiple instruments including long term loan from domestic and foreign lenders including Japan International Cooperation Agency.
Some of the projects being actively pursued by the government include Mumbai metro expansion (Rs 82,172 crore), Mumbai Nagpur expressway (Rs 40,000 crore),Mumbai Transharbour Link (Rs 17,750 crore), Navi Mumbai international airport (Rs 16,000 crore), Mumbai costal road (Rs 13,000 crore), Pune metro (Rs 11,420 crore), Nagpur metro (Rs 8,680 crore) and Bandra Versova sea link (Rs 7,500 crore). These projects are under various stages of implementation and they are expected to be complete in stages from 2019 onwards.
A government officer, who did not want to be identified, told DNA, “The projects which are funded through the budgetary allocation in road, irrigation and power sectors may suffer as the government may introduce 30% cut in spending to implement the crop loan waiver scheme. The government has made an allocation of Rs 8,233 crore for irrigation, Rs 7,000 crore for roads and Rs 2,500 crore for energy.”
He informed that the government will raise Rs 39,000 crore during the current fiscal as permissible under the Fiscal Responsibility and Budgetary Management (FRBM) norms. Of which nearly Rs 15,000 crore may be used for crop loan waiver and the balance for interest outgo worth Rs 28,000 crore. This will leave very limited funds for the capital expenditure.
The officer said that the government proposes to tie up with banks to pay the amount of Rs 34,000 crore towards loan waiver in three to four instalments. “If the banks did not accept government’s proposal for payment in instalments, then in that case the government may use cash reserves of several government undertakings including the Maharashtra Industrial Development Corporation,” he noted.
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