Prudent fiscal measures and mobilising revenue would enable Maharashtra to attain fiscal sustainability by 2006-07, Chief Minister Sushilkumar Shinde said in Mumbai on Monday.
Exuding confidence, Shinde, however, told a meeting of representatives of various Financial Institutions that if the state manages to resolve the issue of short- term liquidity crunch then it could divert additional revenue on the developmental works.
"If developmental works are done, then financial transactions would increase thereby benefitting the financial institutions", Shinde told the gathering.
Emerging out of the two-and-half-hour-meeting, Shinde told reporters that response from FIs is positive and they have expressed happiness about the steps taken by the state government to enforce fiscal discipline."
The state, which has signed an MoU with the Centre on Mid-Term Fiscal Reforms Programme, could get additional revenue on sugar, tobacco and textile once value added tax regime comes into force from April one, 2003, Shinde said.
Similarly, if the Centre allows the state to bring certain services sector under the tax net, then it would help generate more resources, the chief minister added.
The situation could improve further if the World Bank sanctions the structural adjustment loan to the state, he said.
The situation was not bad as being portrayed, he said adding that if the FIs extend short-term assistance then the state could bounce back to its past glory.
© 2026