Maharashtra Budget session: Govt faces tough task amid rising fiscal deficit

The Maharashtra government faces an acid test while presenting its last full budget on March 9. Amid growth in revenue and fiscal deficits and burgeoning public debt, the BJP-led government will have to earmark funds for capital investments especially for a slew of development and welfare schemes and fulfillment of various promises ahead of next assembly poll slated for 2019. 

The government has estimated revenue deficit of Rs 4,500 crore by end of 2017-18, expected to increase to Rs 10,000 crore while the fiscal deficit to 3% plus from the present level of 1.7% of the gross state domestic product (GSDP) largely due to the crop loan waiver scheme of Rs 32,000 crore announced last year.

Further, the state public debt is expected to cross Rs 4.50 lakh crore from the present level of Rs 3.50 lakh crore. The budget session will begin from February 26.

On the other hand, the Opposition is working out its strategy to corner the government over the growing fiscal imbalance, farmers distress, lack of adequate funds due to 30% cut in budgetary spending, lapses in law and order handling and instaces of social and political unrest across the state. Both opposition parties, Congress and Nationalist Congress Party, are separately organising rallies and marches.

However, BJP is banking on the leadership of CM Devendra Fadnavis, who is firm in the saddle. 

He hogged the limelight for organizing Magnetic Maharashtra summit between February 18 and 20, reiterating that state under his leadership has been a favoured destination for investors. 

Fadnavis will strongly justify the crop loan waiver scheme on the grounds that the use of information technology has helped the government weed out ghost accounts, thereby saving Rs 9,000 crore.