Maharashtra Budget 2022: State’s debt stock is estimated at Rs 6.49 lakh crore in 2022-23

Maharashtra’s debt stock, which comprises accumulated unpaid loans and other liabilities, for 2022-23 is estimated at Rs 6,49,699 crore (Budget Estimate) against Rs 5,72,379 crore in 2021-22 (Revised Estimate) and Rs 5,19,086 crore in 2020-21.

The proposed debt stock will be 18.14% of the gross state domestic product (GSDP). The state’s debt stock for 2021-22 was 17.9o% of GSDP and it was 19.14% of GSDP in 2020-21.

According to the Medium Term Fiscal Policy, Fiscal Policy Strategic Statement and Disclosures for 2022-23 said efficient debt management has been carried which has led to decline in the average interest on cost on the debt stock. However, due to infrastructure development, the government borrowings have increased and are expected to remain elevated in FY2022-23.

The document has claimed that since Maharashtra is the largest contributor to the domestic economy, it has had a significant economic impact on the state and country. Economic growth slowed slightly in the first quarter of 2021 due to the effects of the second wave of Covid 19. Since then, the state's economy has recovered even after the third wave, as the government undertook proactive measures and reforms as well as the gradual easing of restrictions on the Covid ban. Encouraging trends are emerging as economic development in the state gains momentum.

The state government will give a priority to increase the rate of tax and non-tax which have been revised for many years as per the advice by the Comptroller and Auditor General. There would be focus on arrear collection and strict vigilance on tax evasion activities.

Further, the government will receive payments electronically and bring all transactions of tax and non tax collection under the Government Receipt Accounting System.