In a projection that has figured in the Maharashtra Economic Survey for 2014-15, the State’s debt stock, which stood at Rs1,81,447 crore at the end of 2009-10, is expected to go up a staggering Rs3,00,477 crore by the end of 2014-15.
The latest 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 17.8 per cent of the Gross State Domestic Product (GSDP)
Though the Economic Survey seeks to downplay the development by saying the State’s debt stock is 17.8 per cent of GSDP—well within the limit of 24.3 per cent by the 13th FC Commission, the State’s debt stock has been increasing annually with an average rate of 10.6 per cent. The cost of borrowing is expected to be around 8.8 per cent during 2014-15, as against 8.7 per cent during 2013-14.
From a position of Rs1,81,447 crore at the end of 2009-10, the State’s debt stock has been going up steadily to Rs2,03,097 crore during 2010-11, Rs2,25,976 crore during 2011-12, Rs 2,46,692 crore during 2012-13 and to an estimated Rs3,00,477 crore during 2014-15.
According to the State economic survey, the overall internal debt as per budget estimate is Rs31,048 crore of which open market borrowings are Rs25,093 crore. Of the internal debt, Rs10,986 crore will be used for repayment of loans.
The Economic Survey for 2014-15 comes up with both positive and negative projects. While it one hand states that Maharashtra’s GSDP is expected to grow at 5.7 per cent during 2014—15, the survey on the other hand says ‘agriculture and allied activities is expected to show negative growth as fluctuations in rains have adversely affected the sector. The industry and service sectors are expected to grow at 4 per cent and 8.1 per cent respectively.
The Net State Domestic Product (stare income) as per the first revised estimates is Rs13,65,149 crore and per capita state income is Rs1,17,091 crore. With rains having played truant during 2014, the State received 70.2 per cent of the normal rainfall. Owing to the deficient rains in kharif season, area under the rabi crops is expected to decrease by 27 per cent as compared to the previous year.
The survey quotes the second advance estimates of 2014-15 as indicating decrease in production of major crops except sugarcane over the previous year. The survey attributes the decrease in production to the deficient rainfall received during sowing period and vegetative growth stage of kharif crops in all parts of the state.
During the kharif season of 2014, sowing was completed on 145.79 hectare land which was three per cent less than the previous year (150.56 lakh ha). The area under cereals and pulses decreased while that under oilseeds and sugarcane slightly increased as compared to the previous year.
The production of cereals, pulses, oil seeds and cotton is expected to decrease while that of sugarcane is expected to increase marginally as compared to the previous year, the economic survey report said adding that it was due to severely deficient rainfall received during the sowing period and vegetative growth stage of kharif crops in all parts of the State.