The management of financial side of state like Maharashtra, which is itself a mini nation is an herculean task. Maharashtra is a major contributor in India’s GDP (Gross Domestic Product) and also have the economical capital India, Mumbai. But if we look at the financial accounts of state, the financial status is a matter of concern. Maharashtra is in revenue deficit more than ₹25000 crores. That means the expenditure of state government is ₹25000 crores more than its revenue collection. The progressive works like irrigation projects are about to stall due to this financial problem. These problems are seems to be no sooner to vanish but growing drastically. The financial condition of Maharashtra is about to become more difficult to handle in upcoming days due to following reasons;
The debt of Maharashtra is highest among all states in India. Maharashtra is in debt of more than ₹3.5 lakh crores. For any state, this amount is very huge and the interest have to be paid on it.
Farmer Loan Waiver
Recently, the loans of farmer in Maharashtra are nullified by the government. But the cost of this loan waiver is about more than ₹40000 crores. It will make the financial problem more severe as this expenditure is unplanned and central financial minister Mr. Arun Jaitley also said that “loan waiver is very own decision of state government & they (central government) can’t help with it.”
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7th Pay Commission
Currently more than 19 lakh government employees are serving in Maharashtra. State government is bound to implement of 7th pay commission by central governments in near future. This will increase the financial burden of extra ₹20000 crores on government. So in near future, this burden is about to come for sure.
Lost Tax from Liquor
The ban on sale of alcohol within 500 meters of high ways caused reduction of 80% in excise tax of state. This loss in revenue is more than ₹10000 crores. Tax from the alcohols used to be major contribution to the state economy.
In conclusion; the revenue of the state is lowering and expenses are soaring the sky. So the financial crisis has just started. If proper preventive measures are not taken then the many public welfare schemes funded by government will be affected.