Maharashtra’s Gross State Domestic Product (GSDP) is expected to register a positive growth rate in 2021-22, as against the negative 8 per cent in 2020-21 which was largely because of the severe impact of the pandemic-induced lockdown. Maharashtra’s GSDP follows the same growth path as the national GDP.
Deputy Chief Minister Ajit Pawar, who holds the planning and finance departments, will table the Maharashtra Economic Survey for 2021-22 in the state legislature on Thursday. Sources in the Maha Vikas Aghadi government project the GSDP for 2021-22 at 8 per cent, on the lines of India’s GDP, which grew at 8.9 per cent. This would be due to the recovery of overall economic activity following the relaxation of curbs.
The possible rise in GSDP is also attributed to the continuous monthly rise in State GST collections barring a month or two, as this has been a major source of tax revenue apart from the rise in stamp and registration duties. However, agriculture and allied sectors, which grew at a record 11.7 per cent in 2020- 21, may not show similar growth as agriculture has been adversely impacted because of unseasonal rains, cyclones and thunderstorms.
Similarly, the industry and service sectors, which grew at minus 11.3 and 9 per cent respectively, are expected to show positive growth. Despite the pandemic, Maharashtra has attracted investments of Rs 1.89 lakh crore. The state government has allowed hotels and restaurants to operate at pre-Covid timings, until 1.30 am and at full capacity. The state’s public debt stock is expected to be more than Rs 6.15 lakh crore in 2021-22, as against the Rs 5.62 lakh crore in 2020-21.
Despite the rise, the public debt stock will be well within the limit – 25 per cent of the GSDP). However, Maharashtra’s borrowings for 2021-22 have been 6 per cent lower, at Rs 64,750 crore, as against the Rs 69,000 crore for 2020-21. The state government has planned to raise market borrowings of Rs 94,750 crore for 2021-22.
Moreover, the state’s revenue deficit, which was estimated at Rs 10,226 crore, is expected to be more in 2021-22 as the government may not be able to meet its revenue receipts target of Rs 3,68,986.86 crore.