11/27/2019 Maharashtra: High revenue deficit will be issue for new Uddhav Thackeray govt - cnbctv18.com
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For 2019-20 (BE), revenue receipts have been estimatedat Rs 3.15 lakh crore while revenue expenditure hasbeen estimated at Rs 3.35 lakh crore.
Maharashtra's loan burden is set to balloon to Rs 4.7lakh crore in 2019-20, a 62 percent jump in five yearssince 2014-15.
Total receipts (excluding borrowings) for 2019-20 areestimated to be Rs 3,16,930 crore, an increase of 9.8percent as compared to the revised estimate of 2018-19.
Economy
Maharashtra: Highrevenue deficitwill be issue fornew UddhavThackeray govtUpdated : November 27, 2019 08:15 AM IST
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T he Shiv Sena-Nationalist
Congress Party-Congress
government, set to take power
on Thursday, will have to take steps to
check the widening revenue deficit of
India's second most politically important
state. For 2019-20 (BE), revenue
receipts have been estimated at Rs 3.15
lakh crore while revenue expenditure
has been estimated at Rs 3.35 lakh
crore. The state continues to estimate a
revenue deficit for FY20 (BE) and it
stands at Rs 20,293 crore. This is the
only FRBM norm that has not been
adhered to in the second successive
year, according to rating agency CARE
Ratings.
While most key macro stats are stable,
the worrying factor is the widening
revenue deficit. The state government
continues to record a revenue deficit
during FY20 (BE) and was at Rs 20,293
crore, 35.6 per cent higher than a year
ago. The revenue deficit of the state has
widened by Rs 509 crore compared with
the revenue deficit of the Interim
Budget.
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Maharashtra's loan burden is set to
balloon to Rs 4.7 lakh crore in 2019-20,
a 62 percent jump in five years since
2014-15. Government liabilities stood at
Rs 4.14 lakh crore in 2018-19 and are
steadily mounting upwards. The state
government had implemented the
Seventh Pay Commission for all its 20.5
lakh employees and pensioners from
January 1, 2019, pushing up the state
salary bill and the revenue expenditure,
as per the state government budget for
2019-20.
Revenue expenditure is an expenditure
incurred by the government on its
departments on various services,
interest on debt, subsidies, etc. Broadly
speaking, expenditure that does not
result in creation of assets is treated as
revenue expenditure.
Maharashtra is currently spending Rs
1.4 lakh crore on salaries, which is a
125 percent jump from 2014-15 when
the salary bill was Rs 62,123 crore. Just
before the state elections in October
2019, the state cabinet cleared a
proposal to implement the Seventh Pay
Commission recommendations for
municipal corporations, municipal
councils and nagar panchayats in the
state from September 1 which,
according to then state Finance Minister
Sudhir Mungantiwar, will cost Rs 409
crore.
Revenue expenditure has been budgeted
at Rs 3.35 lakh crore for FY20 (BE), 11.1
percent higher than a year ago The
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percent higher than a year ago. The
budgetary announcements made on
various expenditure has led to
expanding the total revenue expenditure
by Rs 660 crore compared with the
Interim Budget.
Total receipts (excluding borrowings)
for 2019-20 are estimated to be Rs
3,16,930 crore, an increase of 9.8
percent as compared to the revised
estimate of 2018-19. In 2018-19, total
receipts (excluding borrowings) are
estimated to be higher than the
budgeted estimate by Rs 512 crore.
Revenue expenditure for 2019-20 is
proposed to be Rs 3,34,933 crore, which
is an increase of 11.1 percent over the
revised estimate of 2018-19. This
expenditure includes payment of
salaries, pensions, and interest, among
others. Revenue expenditure accounts
for 83 percent of the total expenditure
proposed for 2019-20.
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CARE Ratings, on its state update has
said: "The total committed expenditure
of the government which includes
salary, pension and interest is budgeted
to be at Rs 1.87 lakh crore, 24 percent
higher than the revised estimate a year
ago."
Committed expenditure (includes also
subsidies) is at 59.4 percent of the
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) p
revenue receipts while it was higher at
62.6 percent in FY15. Capital
expenditure estimated at Rs 43,667
crore in FY20(BE) accounts for 10.3
percent of the total budget size, and has
seen an increase of Rs 928 crore
compared with the Interim Budget. The
capital expenditure has grown by less
than 1 percent (0.8 percent) in FY20
(BE) compared with the revised
estimates of the previous year.
The revenue receipts for FY20 (BE) has
been estimated at Rs. 3.15 lakh crore,
9.8 percent higher than the revised
estimate of FY19. The revenue receipts
have been budgeted higher by Rs 151
crore than the Interim Budget 2019-20.
Out of the total revenue, the state's own
tax revenue accounts for 52.1 percent,
followed by internal debt (18.9 percent)
and share in central taxes (11.5
percent). A higher share of state's own
tax revenue indicates that the state has
been self-reliant.
There hasn't been a change in the
outstanding debt of the Maharashtra
government and it is at Rs. 4.72 lakh
crore for FY20 (BE). The outstanding
debt of the government rose by 13.8
percent over the revised estimates of
the previous year. The outstanding debt
is 15.8 percent of GSDP during
FY20(BE). The outstanding debt has
seen a sustained increase during the
last 4 years, CARE said.
The state has budgeted a fiscal deficit
of Rs 61 670 crore during FY20 (BE)
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Tags
of Rs 61,670 crore during FY20 (BE)
which is 2.07 percent of GSDP which is
higher than 1.92 percent budgeted for
FY20(BE) in the Interim Budget.
The ratio of fiscal deficit to GSDP which
had declined to less than 1 percent
(0.96 percent) during FY18 but had
increased to 2 percent based on the
revised estimates of FY19 (RE). Since
FY11, the state has adhered to the fiscal
consolidation norms and maintained
fiscal deficit below the 3 percent of
GSDP.
CARE ratings fiscal deficit
Maharashtra Maharashtra govt budget
revenue receipts
Seventh pay commission
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