The Hindu Business Line : `Maharashtra on right fiscal track'

The Finance Minister, Mr Jayantrao Patil, told presspersons on Saturday that revenue receipts for the first six months stood at Rs 14,120 crore, up 11 per cent over the year-ago period. The Minister expressed hope that the target of Rs 40,046 crore set for the financial year will be achieved.

"The Maharashtra Government is moving from an adjustment phase to a stabilisation phase," Mr Patil said.

"Entire shortfall in the sales tax will be compensated by the Central Government. We have already received Rs 259.89 crore for the quarter ending June 2005," he said.

The interest burden has come down with the government swapping the high cost debt of Rs 15,514 crore up to last year. Average interest rate, as a percentage of Gross State Domestic Product (GSDP) is expected to come down from 12.7 per cent five years ago to 9.33 per cent this fiscal.

"The consolidated debt of the State Government has already come down to 27 per cent of the GSDP. We aim to reach a figure of 22 per cent over the next five years," Mr Patil said

The Government, according to the Finance Minister, will not resort to `off-budget' borrowings to fund the annual Plan. A marginal revenue surplus budget did not mean the government was reducing planned expenditure, he said.

"A deficit of Rs 3,000 - 4,000 crore to fund development is absurd and undesirable. We expect a surplus of Rs 266 crore, which is a marginal amount," he said. The Government plans to increase reliance on BOT projects, encourage SEZs, and improve the efficiency of public sector undertakings. Infrastructure investments will be given priority, Mr Patil said.

Fiscal responsibility and budgetary management legislation were among some of the new initiatives launched by the government this fiscal. The State, in its financial reforms and budgetary management Act, plans to take appropriate measures to reduce its revenue deficit by March 2009 and thereafter maintain revenue surplus.

"Monthly cash flow system has been introduced for better budget management. The newly introduced VAT system has also stabilised in the State," said Mr Patil. In a bid to strengthen the new VAT regime, the Government is going in for 16 new check posts soon. "These will be modern in their working. Building these will incur a cost of Rs 150 crore," he said.

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