Maha fund crunch to hit in­fra, wel­fare plans

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - NEWS - Suren­dra P Gan­gan suren­dra.gan­gan@hin­dus­tan­

MUM­BAI: It could be a ma­jor blow to big-ticket de­vel­op­ment projects in Ma­ha­rash­tra. Seven months into the fis­cal year, the state gov­ern­ment has earned only 48% of its rev­enue and is faced with ris­ing fis­cal deficit be­cause of un­planned spend­ing on drought re­lief and tax waivers.

Ac­cord­ing to fig­ures au­dited up to Oc­to­ber 2015 by the ac­coun­tant gen­eral of the state, key de­part­ments such as ex­cise, sales tax, stamp duty and reg­is­tra­tion have failed to achieve their tar­gets. Depart­ment of­fi­cials said the per­for­mance may force the gov­ern­ment to im­pose spend­ing cuts on de­vel­op­ment projects.

“About a third of the state’s rev­enue comes from sales tax, which has al­ways been above tar­get. This time, while the tar­get was Rs43,526 crore till Oc­to­ber, the depart­ment has col­lected only Rs41,427 crore. The rev­enue in the com­ing months is un­likely to im­prove,” said an of­fi­cer from the fi­nance depart­ment, not wish­ing to be named.


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