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.

IANS

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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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