This is an archive article published on August 8, 2024
Amid growing debt, state forms panel to finish infra projects without more financial burden
It will also explore way to raise funds for a particular project without burdening the state which include transit oriented development, additional FSI, etc.
Maharashtra’s infrastructure projects are likely to get impacted by the growing debt burden on the state exchequer and rise in fiscal deficit percentage to gross state domestic product ratio. The state government has set up an eight-member committee of senior officials from the administration to be headed by the chief secretary to suggest means to avoid additional financial burden on the state while completing the infrastructure projects.
The committee includes administrative heads of Finance, Planning, Revenue, Public Works Department, and Industries.
The committee is tasked to study all proposed infrastructural projects in the state from all angles including required finances, need to raise funds, financial feasibility, and revenue collection post-project.
It will also explore way to raise funds for a particular project without burdening the state which include transit oriented development, additional FSI, etc.
Presently, the state government is working on infrastructure projects such as the Pune ring road, the Virar-Alibaug Multimodal corridor, missing link project of Mumbai-Pune expressway, Varsova-Bandra sea link.
In addition to this, the Detailed Project Report (DPR) of the Nagpur-Gondiya Expressway; Bhandara-Gadchiroli expressway; Nagpur-Chandrapur super communication expressway; Sindkhedraja – Shegaon Bhakti highway; Pune-Nasik Industrial Expressway; Nagpur – Goa Shaktipeeth highway are being prepared.
The total cost of all these projects is likely to go around Rs 1.50 lakh crore.
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The revenue deficit for 2024-25 as per the budget estimates is Rs 20,050.69 crore and the fiscal deficit has already touched Rs 1,10,355.22 crore.
With announcement of sops ahead of the Assembly polls, including CM Majhi Ladki Bahin scheme; CM Annapurna scheme; free professional education for girls; CM Teertha Darshan scheme, power bill waiver of farmers, which may cost over Rs 1 lakh crore to the state exchequer, the government is now trying to keep its finances intact.
The total debt stock of the state as per the budget estimates for 2024-25 has gone to Rs 7,82,991 crore which is 18.35 per cent to the GSDP continuing the increasing trend of last two years.
In 2023-24, the total debt stock as per cent to GSDP was 17.59 and it was 17.26 in 2022-23.
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According to a senior official from state’s finance department, as per the Maharashtra Fiscal Responsibility and Budgetary Management Act, 2005, the fiscal deficit should ideally not exceed 3 per cent of the GSDP and the finance department works to keep it under the check.
“If the state budget makes arrangement for loan or interest repayment of the debt raised for state government initiatives, special purpose vehicles, the said loan is considered as of the state’s. In that case, the state’s borrowing space is reduced in the net borrowing ceiling which further leads to difficulty in controlling the fiscal deficit,” the official said.
Alok Deshpande is a Special Correspondent with The Indian Express' Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra's hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues.
Expertise
Current Role: Special Correspondent, The Indian Express, Mumbai.
Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the 'hinterlands').
Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including:
State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance.
Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana).
Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides).
Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC's OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits.
Unique Credentials & Trustworthiness
Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects.
Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission.
Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards.
Alok Deshpande's rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra.
He tweets @alokdesh ... Read More
