Notwithstanding the fact that Maharashtra’s debt stock will mount to a staggering Rs 3,56,213 crore by the end of 2016-17, the State economy is expected to go up 9.4 per cent during the current financial year over the previous year.
The Maharashtra Economic Survey, presented in the State legislature a day ahead of the presentation of the State Budget, reveals that the debt stock of the State is 15.7 per cent of the Gross State Domestic Product (GSDP).
Though the Economic Survey seeks to downplay the mounting debts of the State, by saying the State’s debt stock is 17.8 per cent of GSDP—well within the limit stipulated by the 14th Finance Commission under the “Consolidated Fiscal Reform Path”, the State’s debt stock has been increasing annually.
The State’s debt stock, which stood at Rs 1,81,447 crore at the end of 2009-10, is expected to go up a staggering Rs 3,56,213 crore by the end of 2016-17. The cost of borrowing stands at 8.8 per cent during 2015-16, as against 8.9 per cent during 2013-14.
From a position of Rs 1,81,447 crore at the end of 2009-10, the State's debt stock has been going up steadily to Rs 2,03,097 crore during 2010-11, Rs 2,25,976 crore during 2011-12, Rs 2,46,692 crore during 2012-13, Rs 2,94,261 crore 2014-15, Rs 3,20,210 crore in 2015-16 to an expected Rs 3,56,213 crore during 2016-17.
However, as per the advance GSDP estimates, the State economy is expected to grow by 9.4 per cent during 2016-17 as against 7.1 per cent that the Indian economy expects during the financial year. The Economic Survey has pegged the real GSDP estimates for 1016-17 at Rs 18,15,498 crore.
Talking to media persons a day ahead of the presentation of the Maharashtra budget for 2017-18, Finance Minister Sudhir Mungantiwar said, “We are moving ahead. Our growth rate is higher than the national average, higher than several states and that of several countries.” “United States has a growth rate of 1.5 per cent, Japan 0.5 per cent, China 6.6 per cent. In the next financial year 2017-18, we would register over 10 per cent growth rate, a double digit growth rate,” Mungantiwar said.
After a dry spell of two years, the State witnessed good rains during 2016-17 – 94.9 per cent of the normal rainfall. During Kharif season of 2016,the production of cereals, pulses, oil seeds and cotton seeds is expected to increase by 80 per cent, 187 per cent, 142 per cent and 83 per cent respectively. However, the production of sugarcane is expected to decrease by 28 per cent over the previous year.
During the Rabi crop season of 2016, the production of cereals, pulses and oil seeds is expected to 62,90 and 36 per cent respectively over the previous year.