In Post-covid Push For Growth, State Debt To Rocket To 6.5l Cr | Mumbai News – Times of India

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MUMBAI: As Maharashtra emerges from the worst of the pandemic, the economy is doing better than last year. Its expenditure target for 2022-23 is projected at Rs 4.9 lakh crore, a 9% rise over the previous year. The cash-strapped government’s revival strategy was to boost public spending by over Rs 1 lakh crore since 2020 in order to stimulate demand, officials said.
The result is higher borrowings and consequently a steep rise in debt, but also larger capital expenditure towards infrastructure, which is considered growth-oriented. The budget projects a revenue deficit of Rs 24,353 crore for 2022-23. The debt is projected to be almost Rs 6.5 lakh crore. Although it is within fiscal limits, the debt is almost 2.6 times the figure in 2012. Borrowings are projected at Rs 89,768 crore, while 58% of the revenue for 2022-23 is earmarked for salaries, pension and interest payments.

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Deputy CM Ajit Pawar said borrowings also rose because the state spent Rs 14,000 crore on natural calamities, Rs 7,000 crore on crop MSP and another Rs 2,000 crore on the ST bus strike crisis. “What is significant is that capital expenditure has doubled. In 2020-21 it was Rs 32,028 crore and in 2021-22 it became Rs 60,689 crore. This will benefit the economy,” he said.
He also said that revenue deficit had reduced by 25% from last year when it was Rs 30,724 crore. If the state received the Rs 26,500 crore GST compensation due from the state, its financial gap would reduce, Pawar added.

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The budget proposes no new taxes but introduces concessions. It proposes a reduction on VAT on CNG from 13.5% to 3% in order to promote green fuel and bring relief to those using domestic piped gas and CNG vehicles. The proposal will reduce the state’s income by Rs 800 crore.
It also proposes an amnesty scheme from the GST department for the settlement of arrears of tax, interest, penalty or late fee. It is applicable from April 1 to September 30 and is expected to benefit small and medium dealers. It has also proposed an amnesty scheme for the real estate sector from April 1 to September 30 for pending penalties. This is expected to cost the state Rs 1,500 crore.
The budget proposes an outlay of Rs 1.15 lakh crore in five areas or Panchasutri in order to accelerate growth. This includes the sectors of agriculture (Rs 23,888 crore), health (Rs 5,244 crore), human resources (Rs 46,667 crore), transport (Rs 28,605 crore) and industry (Rs 10,111 crore)
For the farming sector, the budget has provided an outlay of Rs 10,000 crore to finance an incentive of Rs 50,000 for each of 20 lakh farmers who repay their crop loans regularly. This had been announced last year but the cash-strapped state could not make a provision for it. The state has also decided to waive a loan of Rs 964 crore taken by 34,788 farmers from the Land Development Bank. An amount of Rs 275 crore will be used to pay the dues of bank employees.
Leader of the opposition Devendra Fadnavis said the budget was not development-oriented and lacked direction. “This budget has only repeated the schemes which had been brought in by our government and relied on Central schemes. They should have reduced the tax on petrol and diesel to help the common man. They have ignored farmers and the regions of Marathwada, Vidarbha and North Maharashtra,” said Fadnavis.

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