Mumbai: The Maharashtra State government will have to find more resources including more borrowings to meet the expenditure during and after coronavirus crisis, said an 11-member expert committee. The committee, formed to suggest measures for revival of State economy, had a meeting in the Mantralaya. It includes serving and retired bureaucrats.
According to the committee, the State public debt, which is expected to cross Rs 5.20 lakh crore in 2020-21, will be 16.6 per cent of the gross state domestic (GDP) product. Due to which the government has to raise at least an additional 2 per cent public debt. The 16.6 per cent debt, if it will increase to 18.6 per cent, will be lower than the limit of 20 per cent of GDP. In 2020-21, the State government is estimated to spend Rs 1,91,451 crore on committed expenditure, including payment of salaries, pension, and interest (equivalent to 55 per cent of the State’s revenue receipts).
Even after the routine expense, the State has 45 per cent of its revenue receipts remaining for all other kinds of expenditure. Further, any additional spending will be met through borrowings.
On average, 50 per cent of the revenue receipts of State are spent on committed expenditure. The budget estimates will have to reworked as there is no tax collection during the lockdown.
The committee further discussed that the government has to raise more funds to support vulnerable sections and keep the government’s spending in motion. Further, the committee addressed the industry protocol, including the movement of personnel, raw material and finished products and also protocols within the factory.
For agriculture, the committee suggested the Kharif season preparedness for inputs and movement of horticultural crops including bananas and mangoes.
As far as logistics are concerned, which is badly hit due to the lockdown, the committee discussed how the truck drivers can follow cleanliness and how often trucks and drivers to be sanitised. The suggestion made by the committee is to consider setting up of sanitisation stations at some points.
The present state of the services sector, including the film industry, hospitality, restaurant and its revival after the coronavirus crisis is over also discussed in the meeting.
RAISING FUNDS
According to the committee, the State public debt, which is expected to cross Rs 5.20 lakh crore in 2020-21, will be 16.6 per cent of the gross state domestic product.
Due to which the government has to raise at least an additional 2 per cent public debt. The 16.6 per cent debt, if it will increase to 18.6 per cent, will be lower than the limit of 20 per cent of GDP.
