Uddhav Thackeray-led government to table Maharashtra Budget on March 8

Notwithstanding the economic slump in the wake of the Covid-19 pandemic, mounting debts and shortfall in revenue collection, the Maha Vikas Aghadi government’s second Budget is expected to focus on resource mobilisation, beefing up health facilities and carry forward social initiatives and boost infrastructure.

Besides, it is to be seen how the Uddhav Thackeray-government gives some sort of relief to the people of Maharashtra from the rising petrol, diesel and LPG prices – when it tables the Budget for the year 2021-22 in the Legislature on Monday.

Deputy Chief Minister Ajit Pawar, who holds the Finance and Planning portfolios, has given the final touches to the Budget which will be presented on March 8.

For the Shiv Sena-NCP-Congress government, which had targeted the Narendra Modi-government for the rising petrol, diesel and LPG prices, addressing this issue is a major challenge.

Maharashtra Congress President Nana Patole and his Mumbai counterpart Bhai Jagtap and the party MLAs rode in cycles to the Vidhan Bhavan complex. Patole had also questioned why celebrities like Amitabh Bachchan and Akshay Kumar, are now quiet though they had targeted the erstwhile Dr Manmohan Singh-led UPA government for price rise.

These were, however, described as a “publicity stunt” by Leader of Opposition Devendra Fadnavis.

In the Mumbai Metropolitan Region, petrol now costs Rs 96-97 per litre (approx) and diesel costs Rs 88 per litre (approx). The state government recovers 25% VAT on petrol and 21% VAT on diesel in Maharashtra. In addition, the government also charges an additional cess of Rs 10.20 per litre on petrol and Rs 3 per litre on diesel.

Last week, when Maharashtra Governor Bhagat Singh Koshyari, addressed the joint session, he mentioned the revenue shortfall.

“Out of the revenue collection target of Rs 3,47,456 crore, the State has collected just Rs 1,88,542 crore at the end of January 2021. This is 35 per cent less than the budgetary estimate and 21 per cent lower than the collection in the same period in the previous year.”

The Economic Survey for 2020-21 reflects that Maharashtra’s debt stock has crossed a whopping Rs five lakh crore.

The debt stock currently stood at 5,20,717 crore (budget estimates) while the interest payment due was Rs 35,531 crore. In 2019-20, the debt stock stood at Rs 4,64020 crore (revised estimates), the interest due was Rs 34,173 crore. The debt stock of Rs 5,20,717 crore, which is 19.6 per cent of GSDP, well within the limit – 25 per cent of the GSDP – as per Fiscal Policy Strategy Statement 2020-21.

The Economic Survey said that the State’s economy is expected to grow by minus 8 per cent during 2020-21 – a similar growth to what the Indian economy is expected to grow.

Maharashtra’s Agriculture and allied activities to grow by 11.7%; Industry by minus 11.3% and Services by minus nine per cent in 2021.

The revenue receipts of the State are Rs 3,47,457 crore for 2020-21 (BE) as against Rs 3,09,881 crore during 2019-20 (RE). The tax and non-tax revenue (including central grants) as per 2020-21 (BE) are Rs 2,73,181 crore and Rs 74,276 crore respectively.