Maharashtra economy is set to grow at minus 8% in 2020-21 due to Covid-19 induced lockdown and economic slowdown
Maharashtra economy is set to grow at minus 8% in 2020-21 due to Covid-19 induced lockdown and economic slowdown

Maharashtra’s economy as per the advance estimates is expected to grow at minus 8% during 2020-21 largely due to COVID 19 induced lockdown and the economic downturn as per the Economic Survey 2020-21 tabled in the state legislature on Friday.

The minus 8% growth is in line with India's growth estimated at minus 8% during 2020-21. In 2019-20, Maharashtra had clocked the 5.7% growth in.

Despite the coronavirus pandemic, the agriculture and allied activities sector has been a silver lining as it is expected to grow at a record 11.7%. However, the industry will grow at minus 11.3% and services minus 9%.

The agriculture and allied activities sector was the only sector that contributed positively to GSVA in 2020-21 and was least impacted during COVID 19 pandemic due to timely and proactive measures taken by the Maharashtra Government.

Due to the hard impact of the pandemic situation mainly on trade, repairs, hotels and restaurants and transport sectors, the services sector is expected to grow at minus 9% in 2020-21.

Manufacturing and construction sectors were hit hard in Maharashtra and are expected to grow at minus 11.8% and minus 14.6% respectively due to which the industry sector's growth is expected to grow at minus 11.3% in 2020-21.

As per the advance estimates, nominal (at current prices) GSDP for 2020-21 is expected to be R 26.61 lakh crore and real (at constant 2011-12 prices) it is expected to be Rs 19.62 lakh crore for Maharashtra.

Total funds proposed for the annual scheme 2020-21 are Rs 115000 crore against Rs 99000 crore in 2019-20 in Maharashtra. The share of district schemes in the annual scheme 2020-21 is Rs 14455 crore.

The rev receipts of Maharashtra are Rs 3.47,457 cr for 2020-21 (BE) as against Rs 309881 crore during 2019-20(RE). Actual revenue receipts during April-December 2020 were Rs 176450 crore (50.8% of BE). Maharashtra's revenue expenditure is Rs 356968 crore as per 2020-21 (BE) as against Rs 341324 crore during 2019-20 (RE).

Maharashtra's total revenue comprising tax revenue and non-tax rev will be Rs 176450 crore in 2020-21 against Rs 214376 crore in 2019-20. Tax rev will be Rs 127011 crore against Rs 166335 crore and non tax revenue Rs 49,439 crore against Rs 48,041 crore.

Maharashtra's debt stock comprises accumulated unpaid loans and other liabilities and it will be Rs 5,20,717 crore as per 2020-21 (BE) which is 19.6% of GSDP well within the limit (25% of GSDP).

Maharashtra's internal debt is expected to reach Rs 430140 crore (82.6%) of debt stock as per 2020-21 (BE) of which open market borrowings are expected to be Rs 353005 crore. In 202021 (BE) internal debt of Rs 80609 crore are expected to be raised of which OMB Rs 70000 crore.

Maharashtra's fiscal deficit is estimated at 2.8% for 2019-20 (RE) against India's 3.8%. The % of fiscal deficit to GSDP in Maharashtra is 2.1% and debt stock to GSDP is 19.6% as per 2020-21 (BE).

Share of development expenditure in rev exp is 68.7% as per 2020-21 (BE) in Maharashtra.

As per 2020-21 (BE), the share of capital receipts in total receipts and capital expenditure in total expenditure are 20% and 17.8% respectively in Maharashtra.

Maharashtra's outstanding guarantees given at the end of 2018-19 were Rs 25135 crore (9% of total rev). The highest outstanding guarantee of 76.1% was given by the urban development department followed by 15.7% by the cooperative & marketing & textile department, 3.2% by the Public Work Department.

As per 15th FC recommendations, total transfers of financial resources to Maharashtra during 2021-22 to 2025-26 will be Rs 337252 crore of which total grants in aid will be Rs 70,375 crore.

Maharashtra: Favoured investment destination

FDI inflows in Maharashtra from April 2000 to Sept 2020 was Rs 818522 crore which was 27.2% of total FDI inflows in India. During 2020-21 up to Sept 2020 total, FDI inflows were Rs 27143 crore.

During Magnetic Maharashtra 2.0 in June, the state attracted investment proposals of Rs 1.13 lakh crore with expected employment of over 2.50 lakh.

Since liberalisation (Aug 1991) up to October 2020, 20909 industrial projects with an investment of Rs 1429142 crore were approved in Maharashtra. During 2020 up to October 247 projects with proposed investments of rs 37887 crore were registered.

Further, Maharashtra's share in aggregate deposits and gross credit of scheduled commercial banks as on March 31, 2020, was 20% and 27% respectively at all India level. The annual credit plan size for the priority sector for 2020-21 is Rs 4.75 lakh crore.

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