National

‘Needless hullabaloo over Maharashtra borrowing’

Radheshyam Jadhav Pune | Updated on July 05, 2020 Published on July 05, 2020

Ajit Pawar, Maharashtra‘s Deputy Chief Minister

State managing economic crisis ably, says Ajit Pawar

The Maharashtra government is ably managing the economic crisis rising from Covid-led disruptions, and the ‘hullabaloo’ over borrowing of funds is unwarranted, according to Deputy Chief Minister Ajit Pawar.

“There is no truth in reports that the State is struggling to pay the salaries of its employees,” Pawar told BusinessLine. “The hullabaloo about the State seeking loans is unwanted, as there is nothing new the government is doing. Borrowing is a routine exercise that all governments follow. We are not doing something unprecedented. Borrowing loans must not be connected to the spread of the coronavirus. In fact, the (previous) BJP-led government left a huge debt (burden) on the State.”.

“The State will fulfil all its commitments and, in fact, we are depositing an outstanding loan waiver amount to 11 lakh farmers’ loan accounts by this month-end (under a scheme),” he added. “No one should believe in rumours that the government is not able to function because of a fund crunch.”

The state everywhere

Insisting that all States are facing a financial crunch, Pawar said: “The financial situation will improve step by step as the government is making every effort to bring the disturbed routine back on track.

 

“I am confident that the State will recover its losses. We are in complete control of the situation and closely monitoring developments (regarding the spread of Covid-19).”

According to the latest State Economic Survey, the revenue deficit has risen to ₹20,293 crore, compared to the Revised Estimate of ₹14,960 crore for 2018-19. The fiscal deficit is ₹61,670 crore and the debt stock ₹4,71,642 crore.

Interestingly, senior Congress leader and Disaster Relief and Rehabilitation Minister Vijay Wadettiwar recently said the government will have to borrow to pay salaries from next month.

Pawar, without naming Wadettiwar, said: “I have not made any statement about the so-called bad condition of State finances; neither has the Chief Minister said anything. Even the secretary of my department has not issued any statement.”

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Published on July 05, 2020
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