Mumbai: The Maha Vikas Aghadi government has presented its maiden budget with a revenue deficit of Rs 9,511 crore. Nonetheless, it has proposed a slew of initiatives to spur growth, boost infrastructure and industrial development, curb agrarian crisis and promote employment. And this, despite economic slowdown and constraints on finances.
The government has estimated revenue receipts of Rs 3,47,457 crore, as against revenue expenditure of Rs 3,56,968 crore, leading to a revenue deficit of Rs 9,511 crore, down from Rs 20,293 crore in 2019-20. The fiscal deficit is estimated at Rs 57,030 crore, as against Rs 63,692 crore in 2019-20.
Deputy Chief Minister Ajit Pawar, who holds the department of planning and finance, has proposed 1% cut in stamp duty on housing in MMR and Pune, Pimpri Chinchwad and Nagpur civic limits to revive the ailing realty sector.
The government is expect to lose Rs 2,500 crore but hopes to meet the gap with payment of stamp duty and registration charges following a surge in property sales.
In order to help the cash strapped industrial sector, the government has proposed reduction in electricity duty to 7.5% from 9.3%.
However, Pawar, in a serious attempt to tackle global warming and climate change, has proposed Re 1 additional VAT on petrol and diesel.
The government hopes to mop up an additional Rs 1,800 crore which will be transferred to the Green Fund.
But this is expected to have a cascading effect on various other sectors and may be inflationary.
‘‘In view of the economic slowdown, it is imperative to provide for expenditure on welfare schemes and thereby stimulate the state economy; hence the ensuing revenue deficit may be viewed favourably,'' said Pawar, amidst applause from the MVA members.
Terming the budget as ''realistic,'' he said the government has not resorted to any jugglery but made an attempt to cover all sectors within the ambit of available resources.
The government has proposed the size of Annual Plan for 2020-21 at Rs 1,15,000 crore, of which Rs 9,668 crore is assigned for the Scheduled Caste Sub Plan and Rs 8,853 crore for the Tribal Area Sub Plan. The size of District Annual Plan for 2020-21 has been increased to Rs 9,800 crore, as against Rs 9,000 crore in 2019-20.
Concerns over less Central funds
The government has estimated that the amount it gets from the Centre has fallen by Rs 8,453 crore, thus putting additional burden on the State exchequer.
The share in the Central taxes that Maharashtra expects to get from the Union government, in accordance with the 14th Finance Commission recommendations, has declined to Rs 36,220 crore in the revised estimates of 2019-20 from Rs 44,672 crore.
Furthermore, the delay in getting GST compensation from the Centre has made it difficult to ensure timely funding of expenditure on development works.
The Centre has already slashed compensation of Rs 8,000 crore which the state could have got after all states were subsumed in the GST. Over and above this, the state is still to receive compensation of Rs 6,000 crore.
