STATE OF AFFAIRS

When Ajit Pawar presented the state Budget in March, he couldn’t have imagined the toll Covid-19 would take on its economy. Anyway, Maharashtra’s economy was not healthy to start with

6% GSDP growth rate in 2018-19; it was 9.2% in 2016-17 ~216,376 per capita GSDP in 2018-19 (at current prices) — 9% higher than that in 2017-18 4.9% unemployment rate, according to the Periodic Labour Force Survey 2017-18

Sectors: In 2018-19, agriculture, manufacturing, and services contributed 13%, 31%, and 56%, respectively, to the state’s economy. These grew by -1.6%, 6.1%, and 8.1%, respectively.

Total expenditure: The 2020-21 target is ~434,085 crore — 4.1% higher than the Revised Estimate (RE) of 2019-20. This is to be met largely through receipts of ~349,766 crore, and borrowings of ~81,106 crore

Total receipts in 2020-21 are expected to be 12% higher than RE. Borrowings are estimated to increase by 8.2% in 2020-21.

Committed expenditure: It typically includes expenditure towards payment of salaries,

pension, and interest. In 2020-21, Maharashtra is projected to spend ~191,451 crore on committed expenditure (equivalent to 55% of the state’s revenue receipts). This implies the state has 45% of its revenue receipts for other expenses. Any additional expenditure will be met through borrowings

In 2020-21, committed expenditure is expected to jump 7.6% from RE. Expenditure on interest payment is expected to increase by ~1,358 crore (4%)