The debt of Maharashtra government is expected to increase to Rs 185,801 crore (Rs 1,858.01 billion) during 2009-10, an Economic Survey report has said.
The total debt increased from Rs 97,674 crore (Rs 976.74 billion) during 03-04 to Rs 142,383 crore (Rs 1,423.83 billion) during 2007-08. The debt was Rs 161,277 crore (Rs 1,612.77 billion) in 2008-09, the report, which was tabled in the state legislature on Tuesday, stated.
It says that the overall fiscal liability of the state has increased at an annual growth rate of 10 per cent during 2003-04 to 2007-08.
During 2008-09, the government raised loans to the extent of Rs 27,321 crore (Rs 273.21 billion) of which Open Market Borrowings were Rs 17,762 crore (Rs 177.62 billion).
As per recommendations of the 12th finance commission, the central government has discontinued to advance loans and advances to the state government except for externally aided projects, as a result of which, the extent of fresh loans received from the central government has reduced substantially.
The loans raised from the central government during 2008-09 were Rs 769 crore (Rs 7.69 billion). Considering the repayment or redemption of loans of Rs 8,427 crore (Rs 84.27 billion), the net loans raised by the government amounted to Rs 18,894 crore (Rs 188.94 billion).
Apart from the borrowings, the outstanding guarantees given by the state government at the end of 2007-08 amounted to Rs 36,075 crore (Rs 360.75 billion).
The major guarantees given by the government were to the co-operation, marketing, textile departments(rs 15,433 crore (Rs 154.33 billion)), water resources department Rs 5,563 crore (Rs 55.63 billion)) and Industry, labour and energy (Rs 4,967 crore -- Rs 49.67 billion).
Maha fiscal deficit to rise to 3.2% of GSDP
Maharashtra's fiscal deficit is expected to increase to 3.2 per cent of the GSDP in 2009-10, according to an Economic Survey report.
The fiscal deficit, which was maximum at 5.3 per cent of the GSDP, in 2003-04, had gradually declined to 2.3 per cent in 2008-09.
"However, in 09-10, it is expected to increase to 3.2 per cent of the GSDP," the report, which was tabled in the State Legislature yesterday, said.
It observed that the state was about to move on the path of fiscal consolidation, but the overall economic situation forced the government to go slow on the path of fiscal reforms.
The percentage of revenue deficit to GSDP was as high as 3.1 per cent in 2002-03. However, as a result of fiscal reforms adopted by the government, it declined to 0.9 per cent in 2005-06.
Later for the next three years, the state enjoyed
revenue surplus. However, in 2009-10, due to the expected increase in revenue expenditure by about 22 per cent, the estimated revenue deficit to GSDP is 0.9 per cent, the report added.
