MUMBAI: State Finance Minister (FM) Sudhir Mungantiwar tabled a populist interim budget for four months viz. April to July, at the State assembly on Wednesday.
This is the fifth budget presented by him with estimated revenue deficit of Rs 19,748 crore. The amount of total debt of the State has increased to Rs 4,14,411 crore. The State government will table the additional budget in its next session.
In the backdrop of the forthcoming Lok Sabha elections, the budget has provisions for the next four months with some populist announcements like schemes for farmers, employment for youths, drought relief and more infra projects ahead of the elections.
The budget showed increased revenue of Rs 90,000 crore from Goods and Service Tax. However, in the last financial year, the government received Rs 1,15, 000 crore as revenue.
While presenting the budget for the year 2018-19, revenue receipts of Rs 2,85,968 crore were expected, but the revised estimates of revenue receipts have been fixed at Rs, 2,86,500 crore. The revised revenue expenditure is estimated to be Rs 3,01,460 crore, which resulted in a revenue deficit of Rs 14,960 crore.
This financial year, the revenue receipts of Rs 3,14,489 crore and revenue expenditure of Rs 3,34,273 has been estimated. As a result, there will be deficit of Rs 19,784 crore.
Implementation of Seventh Pay Commission for the State government employees will put extra burden on the exchequer and the State’s finance will somewhat have to face stress.
However, the Finance Minister claimed that the State’s debt status and financial position has improved.
As per the budget estimates presented in 2018, the total debt of the State was expected to be Rs 4,61,807 crore. During 2018-19, loan of Rs 54,996 crore was to be taken. Due to conscious efforts taken this year, loans have been restricted to Rs 11,990 crore. Therefore, the amount of total debt of the State has increased to Rs 4,14,411 crore. Looking at the size of the the State’s economy, it can be seen that this debt is reasonable as per the established fiscal benchmarks. The total debt of the State is estimated to be 14.82 per cent of its GSDP.
Mungantiwar further explaining the provisions for the various schemes, said that an outlay of Rs 8,733 crore has been made for irrigation projects with special attention on Vidarbha and Marathwada, and drought-prone regions in rest of the State.
The State government had in October last year declared drought in 151 talukas of 26 districts. A provision of Rs 1,500 crore has been made for the State government’s flagship Jalyukt Shivar scheme, which proposes to make 22,000 villages drought free by May 2019.
Underlining the government’s focus on irrigation and agriculture, Mungantiwar said, “A provision of Rs 5,187 crore has been made for micro-irrigation, wells and farm ponds along with the works under Employment Guarantee Scheme (EGS).”
An outlay of Rs 3,700 crore has been made for road development under hybrid annuity model while a provision of Rs 2,164 crore has been made under Chief Minister Gram Sadak Yojana, the minister said.
The government has also made a provision of Rs 1,105 crore under the Central Road Fund Scheme and Rs 350 crore for the NABARD-assisted road development scheme.
The interim budget also allocated Rs 6,306 crore for development of basic energy infrastructure facilities, Rs 101 crore for modernisation of bus stations, and Rs 5,210 crore for concessions in power tariff for agri consumers.
On the health front, the Pradhan Mantri Jan Arogya scheme and the Mahatma Phule Jan Arogya Scheme have got allocation of Rs 1,021 crore, and the National Health Mission Rs 2,098 crore.
An allocation of Rs 465 crore has been proposed for various schemes under the minorities department, Mungantiwar said, adding that a provision of Rs 2,921 crore has been made for the Department of Women and Children.
HIGHLIGHTS
- A fund of Rs 2,400 crore has been proposed for development of smart cities and AMRUTmission.
- Rs 1,097 crore has been proposed for providing nutritious food to children between age of six months and three years, pregnant as well as lactating mothers.
- An amnesty scheme for settlement of pending and disputed taxes, interest, fines and late fees.
- An outlay of Rs 375 crore has been proposed for police housing.
- Rs 8,500 crore has been allocated for road development.
- Rs 3,498 crore has been proposed for various agriculture schemes.
- An outlay of Rs 900 crore has been proposed for electric connections to agriculture pump sets.
- Provision of Rs 572 crore for an educational scholarship scheme for economically backward class students.
- Rs 6,895 crore outlay is proposed for Pradhan Mantri Awas Yojna (PMAY) in Urban areas.
- Rs 896 crore has been proposed for providing rice and wheat at concessional rate of Rs 2 and Rs 3 to farmers above poverty line (APL) in 14 districts of Marathwada and Vidarbha region.
