Mumbai: Experts, officials say govt’s populist measures may harm state's financial health

Officials of the finance department has said that due to the fiscal deficit, developmental projects were already affected and said that the revenue has to be used judiciously and experts echoed similar views.

FPJ Web DeskUpdated: Monday, October 24, 2022, 06:28 PM IST
article-image
Maharashtra CM Eknath Shinde and Dy CM Devendra Fadnavis | (PTI Photo)

Experts in the finance department have reportedly expressed concerns over the schemes announced by the Shinde-Fadnavis government which has cost Rs 12,000 crore to the state exchequer so far, stated reports.

A report in the Hindustan Times stated that the state government has ignored the rules set down by National Disaster Response Fund in regards to the compensation and that the government awarded the farmers double the amount of money. The report also quoted that announcement of distribution of kits full of essential items for Rs 100 in ration shops cost the government Rs 513 crore.

The government has also taken responsibility of bank guarantee for infrastructure projects. An official was quoted saying in the report that the decisions do not have immediate impact but in the long-term harm the financial health since state government ends up repaying loans for which it stands guarantee.

The official, who was not named further said, that the officials have been instructed to oppose decisions and revealed that the E-D government or Eknath-Devendra government as they are called in media is hurriedly obliging to people and that there are more schemes which will be announced ahead of municipal and other local body polls.

Officials were saying that the fiscal deficit reflects on less spending on development works. Another official was quoted in the report saying that the state finance department expects to meet projected revenue receipts of Rs 3.08 lakh crore but pointed out at the need to utilise the funds judiciously and said that if global recession hits Maharashtra’s economy in near future, the fiscal deficit could rise.

Economist Neeraj Hatekar was quoted in the report saying that the government should put in a system that takes care of overall development instead of just making populist announcements. He also sounded an alarm saying that handing out sops is not issue but social impact of the same should be taken into consideration He added that although Maharashtra fares relatively well in RBI reports on state finances, it does reel under huge debts and highlighted the need to be judicious with exchequer

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Mumbai: Bamboo scaffolding of under-construction high-rise building collapses in Lower Parel area; 5...

Mumbai: Bamboo scaffolding of under-construction high-rise building collapses in Lower Parel area; 5...

Roads in Girgaon, Pedder Road, Haji Ali, Worli, Bandra, Vakola and Santacruz to be shut tomorrow?...

Roads in Girgaon, Pedder Road, Haji Ali, Worli, Bandra, Vakola and Santacruz to be shut tomorrow?...

Harris Shield: Al Barkaat to meet Swami Vivekanand in final

Harris Shield: Al Barkaat to meet Swami Vivekanand in final

Maharashtra: Defective chairs to be replaced in Palghar district HQ

Maharashtra: Defective chairs to be replaced in Palghar district HQ

Thane: TMC chief Abhijit Bangar warns action against officers for substandard work in city

Thane: TMC chief Abhijit Bangar warns action against officers for substandard work in city