Hailstorm compensation may affect state budget

Mumbai:  After hailstorm damaged around one lakh hectre land in Marathwada and Vidarbha, there is an apprehension that compensation amount will affect the upcoming state budget. The state is already grappling with financial crunch due to farm loan waiver and uncertainty over collecting revenue after the introduction of Goods and Services Tax (GST). However, the finance minister said that the state would be able to manage its finances. 

Over 1,086 villages from 11 districts of Vidarbha and Marathwada lost their crops in last three days. The hailstorm may again hit the state in a couple of days. This time, the farmers were happy over the rainfall, and the crops were in the final stage. However, wheat, jawar, onions have destroyed completely, according to the primary report. Chief minister Devendra Fadnavis has announced compensation for the farmers after the panchnama. This, according to the finance department sources will put more burden on the state exchequers which is already facing crunch. 

As per the department, the revenue expenditure has increased by 80 per cent in the last four years, but revenue receipts have not risen. This means an increase of Rs 5.25 lakh crore of debt burden on the state in the next financial year. So, though revenue has increased in comparison with last year, the state will have to face a financial crunch and a record-breaking fiscal and revenue deficit in the current as well as the next financial year. This will reflect in the budget which will be presented on March 9. The state has released only 70 per cent of funds for welfare schemes to all the department due to financial crunch. 

However, finance minister Sudhir Mungantiwar said that despite the odds, the government would ensure that the farmers will get their compensation. “We will ensure budgetary provision for the farmers affected by hailstorm this time,” Mr Mungantiwar added.