Mumbai coronavirus
Mumbai coronavirus
(Photo by Indranil MUKHERJEE / AFP)

Mumbai: Maharashtra's economy will take a major hit if coronavirus spreads further across the state. State economy will turn red with a negative growth against 5.7 per cent in 2020-21.

Chief Minister Uddhav Thackeray, who reviewed the situation in the wake of the outbreak, admitted that the state economy will be impacted. ''However, I have asked the departments to suggest measures to reduce the impact,'' he noted.

Already the number of confirmed coronavirus cases has surged to 39 in the state. Even though the government has not announced shutdown or lockdown, the closure of malls, cinema halls, pubs and discotheques until March 31 will impact their businesses heavily and also affect the state's revenue collection.

Senior bureaucrat told FPJ, ''If the situation further worsens, then the economic growth will be a casualty. With reduction in production, there will be less demand, sale and consumption, leading to fall in the revenue mobilisation especially state GST, stamps and registration and state excise duty.

The economy will certainly turn red, which is not a good thing, as it will be difficult to achieve $1 trillion economy by 2025 from the present level of $475 billion.''

The officer said there are constraints on raising debt, which is expected to reach Rs 5.20 lakh crore and the fiscal deficit at Rs 5,4618.38 crore for 2020-21.

In budget 2020-21, the revenue receipt is estimated at Rs 3,47,457 crore and revenue expenditure at Rs 3,56,968 crore.

Even though the government has made allocation of Rs 25,000 crore for the implementation of crop loan waiver scheme, it would be left with less money for capital expenditure against the estimate of Rs 47,416.92 crore.

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Free Press Journal