Maha-Budget: Debt soaring, growth at 5.7 percent, crucial FDI and employment numbers revealed

Source : IANS
Author : IANS
Last Updated: Thu, Mar 5th, 2020, 19:43:28hrs

Mumbai: Despite the state debt crossing Rs 5 lakh crore, Maharashtra's economy is expected to grow at 5.7 percent during 2019-2020, according to the Economic Survey of Maharashtra 2019-2020 tabled in the legislature here on Thursday.

The state's debt stock stands at Rs 471,642 crore, or 16.4 percent of GSDP the interest component is Rs 35,207 crore.

The revenue deficit for the year was Rs 20,293 crore and fiscal deficit Rs 61,670 crore, or 2.1 percent of the GSDP.

However, all these are well within the cap of 24.4 percent of GDP set by the 14th Finance Commission.

The state economy is likely to grow at a rate of 5.7 percent during 2019-2020, or marginally below the projected 6 percent of the last financial year, as Deputy Chief Minster and Finance Minister Ajit Pawar prepares to present the state budget 2020-2021 in the legislature on Friday.

The state's average share to the all India nominal GDP is 14.3 percent among all states.

The per capita income in the state is expected to be Rs 207,727 in 2019-2020 while the GSDP is likely to be at Rs 28,78,583 crore, said the survey.

The nominal GSDP is likely to increase by Rs 245,791 crore this year compared to 2018-2019.

The other highlight is the state reported a steep fall in FDI inflow at Rs 25,316 crore compared to Rs 80,013 in 2018-2019 and Rs.86,244 crore in 2017-2018. Accordingly, the state stood second to Karnataka in the country in terms of FDI this year.

Unemployment rate from January-March 2019 was 8.3 percent compared to 9.6 percent from October-December 2018.

The state recorded an average rainfall of 73.6 percent during 2018-2019, which was a reduction of 10.7 percent compared to 2017-2018. The outlook is good for agriculture and allied activities sectors which are estimated to grow at 3.1 percent in 2019-2020, compared to two consecutive years of negative growth of (-)2.2 percent in 2018-2019 and (-) 0.7 percent in 2017-2018.

However, there is gloom for the industry and service sectors which would grow at 3.3 percent and 7.6 percent respectively in 2019-2020, which will be slower than the previous year's 5.5 and 8.1 percent respectively.

The survey also said that atrocities against women increased in the state with 37,567 crimes reported in 2019 compared to 35,497 in 2018 and 31,997 in 2017.