Govt. Economic survey says Maharashtra’s Economic condition is critical

Govt. Economic survey says Maharashtra’s Economic condition is critical-VJAS urged central Govt. intervention to avoid economic collapse

Nagpur- 2^nd August, 2009

“2 million jobs are lost,food grain production dropped by 25%,outstanding debt mounting to Rs.1,58,520 crore,interest payment on debt is Rs. 12,953 crore,30% drop in employment provided under National Rural Employment Guarantee Scheme (NREGS), poverty ratio in the State is 30.7 per cent as against All-India average of 27.5 percent and more than 6000 farm suicides and lacs of tribals death due to malnutrition and starvation” this is not report of any state in Africa but is the extracts of official economic survey report submitted by Maharashtra Govt. in legislative assembly and made available on state Govt. website,Vidarbha Jan Andolan Samiti(VJAS) warned state Govt. regarding economic collapse and urged central Govt. intervention to avoid systematic failure of fiscal structure of Maharashtra .

‘we are going toward bad phase of economic condition of one time very progressive state Maharashtra due huge mounting debt,massive administrative corruption coupled with administrative failure of present Govt., It’s matter of serious concern of all tax prayer of Maharashtra ’kishore tiwari of VJAS informed today.

As per recent economic report ,it is informed that the revenue receipts of the State Government are expected to be Rs. 79,911 crore during 2008-09 as against Rs. 79,860 crore during 2007-08. The tax revenue of the State is expected to be Rs. 60,839 crore in which State’s own tax revenue is Rs. 51,893 crore (85 per cent). The non-tax revenue is expected to be Rs. 19,072 crore.The revenue expenditure of the State Government during 2008-09 is expected to be Rs. 78,946 crore, higher by 19 per cent over the previous year, of which interest payment is Rs. 12,953 crore (16.4 per cent).The total outstanding debt during 2008-09 is expected to be Rs. 1,58,520 crore (25.8 percent of the GSDP).The food grains production for kharif and rabi season in the State is estimated to be 117.19 lakh M.T. as a preliminary forecast, less by 24 per cent compared to that of the previous year. A steep fall of 49 per cent is expected in production of oilseeds. Sugarcane production is also expected to be much lower by 43 per cent (at 508.13 lakh M.T.) mainly due to reduction of 30 percent in the harvested area.The estimated employment in the State, based on National Sample Survey, which was on rise till 2004-05 at 4.3 crore, declined to 4.1 crore in 2007-08 clearly indicating the footprints of recession.The employment provided under National Rural Employment Guarantee Scheme (NREGS) during 2008-09 was 4.2 crore person days as against 6.0 crore person days provided under Employment Guarantee Scheme (EGS) and NREGS during 2007-08.The poverty estimate provided by the Planning Commission of India, reveal that the poverty ratio in the State during 2004-05 is 30.7 per cent as against All-India average of 27.5 percent. Though the results at various points of time show decline in poverty ratios, the number of persons living below poverty line is gradually increasing since 1973-74 and increased by 12.2 lakh persons in 2004-05 as compared to 1993-94.

Kishore Tiwari of VJAS has asked today to central Govt. to review economic crisis in Maharashtra due to uncontrolled plan and unplanned expenses of state Govt. and on going fiscal deficit of state Govt. as bureaucratic control is of executive is missing and corruption in administration is at it’s peak hence fiscal monitoring and central review is needed..

“this is election year but people of Maharashtra will have to pay cost of political misdeed in future ,more hardship are in pipeline if corrective steps are not taken today” tiwari added.

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