State has good fiscal health: Finance panel after CM meet
Previous findings had projected worrisome financial picture
Members of finance commission, who are on a three-day visit to Maharashtra since Monday, have suddenly gone on a back foot from the previous findings which projected a worrisome financial picture of the state. This sudden change of heart was seen after their meeting with Chief Minister Devendra Fadnavis. Addressing media on Wednesday, N K Singh, chairman of 15th Finance Commission said, “The ratio of debt of state to the Gross Domestic Price (GDP) is 17 per cent and it is well within prescribe ceiling of 20 per cent.”
A day before its official tour to the state, a statement was released by government, which had painted grim picture of the state economy after which opposition Congress and NCP targeted ruling BJP government over declined economical position of the state.
Singh said, selective quoting of economic statistics has created a myth that the state was in a bad shape. “In fact, there was fiscal scope for Maharashtra to increase its capital expenditure on infrastructure more aggressively. However, Maharashtra is historically been known for conservative approach to fiscal management.”
Singh added the state needs to be more adventurous in its spending capital expenditure. Fiscal health of the state is very good as compared to other states. “Some states have been guilty of fiscal profligacy, which is not the case of Maharashtra, as it has been credible. In terms of Human Development Index (HDI), even though Maharashtra has not done well in the national rankings, one cannot cast aspersions on the state,” said the chairman of the commission.
Earlier, CM Fadnavis met Singh and sought allocation of Rs 50,000 crore for Mumbai infrastructure development and Rs 25,000 crore for Vidarbha and Marathwada to improve living standards of their inhabitants.
Fadnavis said, “Mumbai is the backbone of India’s economy and hence there is a need to strengthen the infrastructure of Mumbai.”
Referring to the afforestation drive launched by the state, Fadnavis demanded to incentivise the state which has the highest tree cover in non-forest lands. He demanded a special grant of Rs 1,777 crore as a support for conversion of forest, wildlife and increase in green cover.
The government also sought Rs 1,400 crore special grant as support for environmental management, Rs 200 crore for ecosystem conservation of rivers and Rs 200 crore for coastal biodiversity conservation.