State struggling to keep economy in good position

Mumbai: Ahead of the visit of the 15th Finance Commission to Maharashtra, it is clear that the state is struggling to keep the economy in a good position. The commission has read out the problems the state is facing in which the sharp disparity of development across the districts has been highlighted.

The commission has also taken note of falling the growth momentum of revenue receipts in the last few years. The members of the commission will meet chief minister, officers and many others in the state from September 17.  

In a press release by Press Information Bureau, the commission stated that Maharashtra is still the leading state in terms of contribution to the Indian economy. It said, “A revenue deficit of 0.5 per cent to Gross State Domestic Product (GSDP) continues to be a worrisome factor for Maharashtra. This has increased even as the fiscal deficit to GSDP ration has fallen. This indicates that debt is being used for revenue expenditure.”

The commission will focus mainly on how the state failed to maintain the momentum of growth of revenue receipts while comparing 2009-2013  and 2014-2017. In 2009 to 2013, revenue collection was higher in Maharashtra. But it has decreased from 2014 to 2017. The commission has mentioned the sharp fall in growth of the state’s tax revenue from 19.44 per cent from 2009 to 2013 to 8.16 per cent from 2014 to 2017.

“Maharashtra, despite being most the urbanised state in India, has greater disparity of development in its all regions.

Vidarbha and Marathwada are still significantly backwards compared to Mumbai. Out of 34 districts in the state, 16 from these two regions falls much below in per capita income on an average to state and national level,” says the press note.

The Asian Age tried to call finance minister Sudhir Mungantiwar for his reaction on the press release, but couldn't reach him.