CashNews.co
Mumbai: While opposing a proposal to grant revised administrative approvals to build sports complexes across Maharashtra, finance department said the state’s revenue deficit had crossed the 3% limit for 2024-25.
“The fiscal deficit for 2024-25 has reached 1.9 lakh crore owing to the additional budget and supplementary demands. The revenue deficit of the state has gone beyond the 3% limit,” the finance department said.”As a result of the revenue deficit, fiscal responsibility, and new schemes announced by state govt, there is a huge financial burden on the state and it cannot accept additional financial responsibility.”
According to the Maharashtra Fiscal Responsibility and Budgetary Management Act, 2005, the state’s fiscal deficit should be within 3% of its GSDP.
In the state budget presented in July, the fiscal deficit for 2024-25 was projected at 1.1 lakh crore and debt at Rs 7.8 lakh crore. The finance department has admitted that the fiscal deficit had reached Rs 1.9 lakh crore, just halfway into the financial year.
When the state presented the budget in July, it announced new schemes worth Rs 96,000 crore. Of these, the Mukhya Mantri Ladki Bahin Yojana is set to cost Rs 46,000 crore per year. Then the state presented supplementary demands for expenses outside the budget worth almost Rs 95,000 crore.
The Opposition had accused the govt of fooling the public by shifting a massive chunk of budget expenses onto supplementary demands to keep the debt figure lower than it was.