Mumbai: The Maharashtra government on Tuesday formed three panels to make recommendations for revival of the economy which is badly hit due to the lockdown and the economic slowdown.
The government’s move comes at a time when its revenue mobilisation in March this year was Rs 17,000 crore, as against Rs 42,000 crore in the corresponding period last year. In addition to this, there is a shortfall of Rs 10,000 crore in overall revenues.
A seven-member committee is chaired by Deputy Chief Minister Ajit Pawar, who held its first meeting on Tuesday. Another committee, comprising 11 serving and retired bureaucrats, will submit its findings to the government by April 30. The announcement of these two committees was made by Pawar.
The third committee, comprising noted scientist Raghunath Mashelkar and leading economists Vijay Kelkar and Ajit Ranade, will also suggest a slew of measures for revival of the economy. The announcement in this regard was made by Chief Minister Uddhav Thackeray on Tuesday evening.
A senior bureaucrat said the government has limited options in the given situation to revive the economy as there will be practically no revenue mobilisation for April, May and June even after the lockdown is lifted as it will take time to restart all industrial activities.
‘The total receipt for 2020-21 is estimated at Rs3,49,766 crore based on the revised estimates of 2019-20. However, the estimates have altered due to lockdown and there will be 30% cut, while GST collection will be down by a minimum 40%, as against the estimates.
GST is the major source of revenue for the state while the reduction in stamp duty and excise duty will be much more than this. So, the government will have to table a revised budget,’’ he noted.
The devolution of funds from the Centre based on tax collection will also be affected to the same extent. The officer added the government may approach RBI with a plea to provide ways and means advance for three months as a special case and it should charge 1 to 2 per cent interest rate.
‘’This is necessary as the Centre has allowed the filing of GST returns up to June 30 and the GST money flows along with the returns. The flow of income to state govt will be quite paltry till that period and for immediate cash requirement ways and means advance is necessary. This is needed to pay salaries, medical and public health expenditure,’’ he said.
The government has already slashed the salaries of ministers and legislators and it has no alternative but to pay salary of March to government employees in two instalments for want of funds.
The repayment of the principal amount of debt and Rs70,000 crore interest will have to be deferred by RBI as a special case. Th ere should be moratorium, to be given by the RBI.
