Mumbai: The state finance department is struggling to keep up with the farmers’ loan waiver assurance as the cabinet is likely to declare details of the waiver on Saturday. Chief minister Devendra Fadnavis has called an urgent cabinet meeting in Mumbai on Saturday and buzz is that the government may declare the much-awaited parameters of the loan waiver.
However, the state exchequer is bleeding and sources within the finance ministry confirmed to The Asian Age that there is confusion over the “sources of finance” for this loan waiver.
The state revenue has fallen as compared to financial year 2015-16. Estimated excise of about Rs 15,343 crore has gone down to Rs 9,442 crore. Sales tax too has fallen from the expected Rs 81,437 crore to Rs 69,253 crore. Similarly, stamp duty collection has plummeted from the expected Rs 23,547 crore to Rs 16,347 crore.
At a time when it is struggling with plunging revenue, the state finance department is also not completely clear about impact of Goods and Services Tax (GST) which will be implemented from July 1. Maharashtra as manufacturing state is likely to lose its share as per primary estimates. At the same time, state revenue has also been adversely impacted by the Supreme Court’s ban on sale of liquor within a 500m radius of state and national highways. To add to the state treasury’s woes, the farmer loan waiver is estimated to bring the state down by another Rs 30,000 crore. The government has decided to clear loans of farmers who defaulted till June 30, 2016.
