Maharashtra's estimated growth rate more than nation's

The state economic survey presented the advance estimates on Thursday, a day ahead of the MVA's first Budget. Pic/ Istock

Despite taking a hit in the prominent sectors in the financial year 2018-19, Maharashtra's economy is predicted to grow by 5.7 per cent in 2019-20, fighting against the fiscal, revenue deficit and debt stock. The state economic survey presented the advance estimates on Thursday, a day ahead of the Maha Vikas Aghadi's (MVA) first Budget. The state's estimated growth rate is higher than the country's 5 per cent and less than China's 6 per cent.

It has emerged that the state fell 2 per cent short of the last budget's growth projection of 7.5 per cent. Last year, former finance minister Sudhir Mungantiwar had pegged the state's expected economic growth rate for 2018-19 at 7.5 per cent, higher than India's at 6.8 per cent.

However, in 2019-20, the state's per capita state income (R1,91,736) in 2018-19 was expected to increase to Rs 2,07,727. Currently, the state capita state income is ranked fifth among the selected states including Haryana (Rs 2,26,644), Karnataka (Rs 2,10,887), Telangana (Rs 2,05,696) and Tamil Nadu (Rs 1,93,750). It also said the state's Gross State Domestic Product (GSDP) is expected to increase by Rs 2,45,791 crore during 2019-20 as compared to the previous fiscal year.

The Consumer Price Index (CPI) for the rural and urban areas has also increased. The year-on-year rate of inflation based on the average CPI between April 2019 and December 2019 was 9.2 per cent for rural areas and 6.2 per cent for urban areas against 0.6 per cent and 1.9 per cent, respectively from April 2018 to December 2018.

Good thing is that the state increased its revenue receipt until December 2019 (Rs 2,14,376 crore, which is 68.1 per cent of Budget estimates) over the corresponding period of 2018-19. However, the revenue expenditure was Rs 32,000 crore more than the revised estimates for the previous fiscal year.

The survey further says that the fiscal deficit to GSDP was 2.1 per cent and debt stock to GSDP was 16.4 per cent as per Budget estimates. Both indicators were within fiscal limits prescribed by the 14th Finance Commission, it said.

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