Maharashtra has brought down its debt-to-gross state domestic product (GSDP) ratio below the 15%-mark, with the latest budget estimates pegging the debt stock at ₹4,14,411 crore for 2019-2020.
Debt stock refers to the government’s accumulation of unpaid loans and other liabilities. A low debt-to-GDSP ratio indicates capacity to pay back debt.
The drop to 14.82% as opposed to the initially-projected 16.5% during the estimates presented in March 2018, has been made possible due to prudent fiscal planning, Finance Minister Sudhir Mungantiwar said on Wednesday, while presenting his last budget speech before the 2019 elections.
At the peak of the Congress-Nationalist Congress Party (NCP) regime, the benchmark number had crossed 28%, he said.
The State’s debt-to-GSDP ratio has been declining over the years: from 17.81% in 2014-15, it came down to 15.7% in 2016-17.
As per the Centre’s financial indicators, a State’s financial position is considered healthy if the quantum of debt is below 25% of GSDP, officials said.
As per the budget estimates presented in March 2018, the State’s total debt was estimated at ₹4,61,807 crore. The government had accordingly planned to raise a loan of ₹54,996 crore. But efforts were made to restrict the loan, in which only ₹11,990 core was finally raised, restricting the debt to ₹4,14,411 crore, said Mr. Mungantiwar, taking a dig at the Opposition for its failure to restrict the debt-to-GSDP ratio.
The Finance Minister said the evaluation of the State’s financial position must be based on scientific and available indicators. Mere allegations that the State is ‘highly indebted’ or has become ‘bankrupt’ does not help anyone’s cause, he said taking a veiled dig at the Opposition. “I heard someone in the Opposition talk about our ballooning debt, but let me explain, it all depends on ratio of debt to GSDP,” he told the Opposition benches in the Assembly on Wednesday.
Key Highlights of Interim Budget 2019-2020:
- Estimated revenue receipts: ₹3,14,489 crore
- Estimated revenue expenditure: ₹3,34,273 cr
- Estimated revenue deficit: ₹19,784 cr
- Outlay plan: ₹ 99,000 cr
- School and health services for scheduled caste: ₹9,208 cr
- Irrigation projects: ₹ 8,733 cr
- Road development: ₹8,500 cr
- Tribal development: ₹8,431 cr
- Pradhan Mantri Awas Yojna: ₹6,895 cr
- Energy infrastructure works: ₹6,306 cr
- Electricity concession to agri sector: ₹5,210 cr
- Women and child development schemes: ₹2,921 cr
- For Vimukt Jati, nomadic tribes: ₹ 2,892 cr
- Smart Cities: ₹2,400 cr
- For building judges and court quarters: ₹725 cr.
- Modernisation of state transport bus stand: ₹101 cr
- For police housing: ₹ 375 cr
Debt stock
Year — —— Debt Stock — ratio debt to GSDP
2014-15 — ₹3,00,477 cr — 17.81%
2016-17 — ₹3,56,213 cr — 15.7%
2019-20 —— ₹4,14,411 cr - 14.82%