In view of the ongoing coronavirus pandemic and slowdown, Maharashtra’s debt stock has surged to 20.64 per cent of gross state domestic product in 2021-22 (within the 25 per cent borrowing limit) from 16.01 per cent in 2019-20 and 20.22 per cent in 2020-21.
The debt stock was reported at Rs 6,15,170 crore (20.64 per cent of GSDP) in 2021-22 against Rs 5,38,304 crore (20.22 per cent of GSDP) in 2020-21 and Rs 4,51,114 crore (16.01 per cent of GSDP) in 2019-20.
Deputy CM Ajit Pawar said effective and proactive debt management is vital for fiscal management . “However, given the Covid scenario, the government borrowings has increased and is expected to remain elevated in 2021-22,” he added.
Under the debt management, the government is also taking short term loans along with long term loans which has helped in reducing interest pay up. The government is in consultation with the Reserve Bank of India to invest the remaining cash balance in 14 days, 91 days and 182 days Treasury Bills. Appropriate cash management has helped in reducing the debt burden of the state.
Further, the interest to revenue receipts in 2020-21 is pegged at 12.85 per cent as per the revised estimates. In fiscal 2021-22, it is expected to be 11.65 per cent.
As far as contingent and other liabilities are concerned, if the guarantee gets invoked the burden of payment falls on the government. In order to reduce the additional burden on state finances in case the guarantee is invoked, the government has set up a Guarantee Redemption Fund.
