Mumbai, July 9 (IANS) Deputy Chief Minister and Finance & Planning Minister Ajit Pawar, while responding to the discussion on supplementary demands in the Maharashtra Legislative Assembly on Wednesday, said the government is strictly adhering to fiscal discipline and the debt and fiscal burden are well within the stipulated limits.
He claimed Maharashtra’s economy is stable and the government is focused on creating new sources of revenue. He has thereby rejected the opposition’s arguments that the state government is in a deep financial crisis in the wake of rising revenue and fiscal deficits and public debt, restraining the state’s ability to further mobilise funds.
Pawar stated that the funds proposed under the supplementary demands will be primarily spent on grants as per the 15th Finance Commission’s recommendations, state contributions towards centrally sponsored development schemes, roads, railways, bridges, metro and underground infrastructure projects. These expenditures will, in turn, add to the state’s assets.
He highlighted that under the norms of the Finance Commission, the state’s total outstanding liability must remain below 25 per cent of Gross State Domestic Product (GSDP).
As per budget estimates for 2025–26, Maharashtra’s outstanding liability is projected at 18.87 per cent of GSDP, well below the limit.
Similarly, the fiscal deficit is limited to 2.76 per cent, under the 3 per cent benchmark. As of now, only Maharashtra, Gujarat, and Odisha have maintained their debt ratio below 20 per cent.
“The state is committed to prudent financial planning, efficient resource utilisation, and regulated policy implementation, which have all contributed to a strong economic position,” he noted.
Though supplementary demands of Rs 57,509 crore were tabled in the monsoon session, the actual net financial burden on the state is only Rs 40,645 crore. Of this, Rs 19,184 crore is allocated for committed expenses, Rs 34,661 crore for various scheme-related programmes, and Rs 3,665 crore for centrally sponsored schemes.
He stressed that the actual net burden of Rs 40,645 crore reflects Maharashtra’s robust financial planning and disciplined governance.
He stressed that the actual net burden of Rs 40,645 crore reflects Maharashtra’s robust financial planning and disciplined governance. He reiterated that the state's economic strategy, rooted in financial discipline, precise planning, and revenue augmentation, has ensured a strong, sustainable, and resilient economy.
He reiterated that the state's economic strategy, rooted in financial discipline, precise planning, and revenue augmentation, has ensured a strong, sustainable, and resilient economy.
According to him key department wise allocations in the supplementary demands include Rs 11,043 crore as grants per the 15th Finance Commission, Rs 3,228 crore as stamp duty surcharge refunds, Rs 2,241 crore as a subordinate loan towards underground infrastructure including the Mumbai Metro, Rs 2,183 crore as margin money loans for cooperative sugar factories via the National Cooperative Development Corporation, Rs 2,150 crore as interest-free special assistance from the central government for capital expenditure (for 50 years), Rs 2,097 crore from NABARD for incomplete irrigation projects and distribution system upgrades and Rs 1,000 crore for the planning of the Simhastha Kumbh Mela.
--IANS
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