Maharashtra reported fiscal surplus of 15% of its budget estimates

For the current year as a whole, Maharashtra has projected a fiscal deficit of Rs 50,585 crore, or about 1.8 per cent of the gross state domestic product. (Representational)

IN THE April-June quarter, Maharashtra reported a fiscal surplus of about 15 per cent of its budget estimates for the current financial year, according to an analysis of data from the Comptroller and Auditor General (CAG) by brokerage firm JM Financial. For the same period last year, the fiscal surplus was 16 per cent of the budget estimates. For the current year as a whole, Maharashtra has projected a fiscal deficit of Rs 50,585 crore, or about 1.8 per cent of the gross state domestic product (GSDP). 

Maharashtra is one of the four large states in India, which has a fiscal surplus, along with Gujarat, Karnataka and Uttar Pradesh, according to the report of JM Financial. On an aggregate for 14 states, gross fiscal deficit is 0.37 per cent of GSDP for the first quarter of this year. In the June quarter, Maharashtra grew its revenue receipts by 13 per cent from a year ago.

 

That’s a slowdown from the 23 per cent rate of the year-ago period. For the 14 states put together, revenue receipts grew by 16 per cent in April-June 2018 versus 11 per cent in April-June 2017. The increase in the growth rate of revenue receipts was largely driven by robust growth in stamp and registration duties, and excise duties, said the report. For instance, for the aggregate of 14 states, stamp and registration duties grew 27 per cent compared to a contraction of 3 per cent a year ago.

Similarly, growth in state excise was a healthy 24 per cent versus 14 per cent last year. For Maharashtra, however, there was a fall in the growth rate of stamp duty receipts from 22 per cent to 12 per cent. It partially made up in state excise where growth was 15 per cent compared to 9 per cent a year ago.

Revenue expenditure in Maharashtra also rose 20 per cent in April to June 2018 compared to 3 per cent in April-June 2017. For the 14-state aggregate, the corresponding numbers were 19 per cent and 12 per cent, respectively. The states also together reported a 4 per cent increase in capital expenditure compared to a shrinkage of 16 per cent a year ago. However, for Maharashtra, capex shrank by 46 per cent from a year ago. In the same period last year, it had grown by 8 per cent.