Maharashtra to clock 7.3% growth in 2024-25, shows Economic Survey; debt stock to increase 10.1% over previous year

Maharashtra stands at fourth rank in terms of per capita income for the year 2023-24 with Telangana being the first. The Per Capita State Income for 2024-25 as per advance estimates is Rs 3,09,340 as against Rs 2,78,681 as per first advance estimates for 2023-24.

During 2024-25, the real Gross State Value Added of the agriculture and allied activities, industry and services sectors is expected to grow at 8.7 per cent, 4.9 per cent and 7.8 per cent respectively, according to the Maharashtra Economic Survey. The service sector is likely to grow at 7.8 per cent in 2024-25, compared to 8.3 per cent of the first Revised Estimate (RE) of 2023-24. The industry sector is expected to grow by 4.9 per cent in 2024-25, compared to 6.2 per cent of the first RE of 2023-24.

The survey shows the total receipts and expenditure are expected to marginally increase by 0.1 per cent and 2.0 per cent respectively in 2024-25 (BE) over the previous year. As per 2024-25 (BE), the revenue deficit, fiscal deficit and primary deficit are expected to be Rs 20,051 crore (0.4 per cent of Gross State Domestic Product or GSDP), Rs 1,10,355 crore (2.4 per cent of GSDP), Rs 53,628 crore (1.2 per cent of GSDP) respectively.

The state has adhered to the Maharashtra Fiscal Responsibility & Budgetary Management (MFRBM) Rules, 2006 on fiscal consolidation. The percentage of fiscal deficit to GSDP as per 2024-25 (BE) is expected to remain well within the limits as prescribed in the rules (3 per cent of GSDP).

Debt stock refers to the accumulated outstanding loans and other liabilities of the state. As per the budget estimates for 2024-25 (BE), the state’s debt stock is expected to increase by 10.1 per cent over the previous year. However, its percentage to the GSDP (17.3 per cent) is expected to be well within the prescribed limit (25 per cent of GSDP) as per the MFRBM Rules, 2006. As per 2024-25 (BE), the major contributor to total debt stock is the internal debt of the state, which is expected to be Rs 6,37,141 crore (81.4 per cent).

During the Kharif season of 2024-25, sowing was completed in 157.59 lakh hectare area. While the production of cereals, pulses, oilseeds, and sugarcane is expected to increase by 49.2 per cent, 48.1 per cent, 26.9 per cent, and 6.6 per cent respectively, that of cotton is expected to increase by 10.8 per cent over the previous year.

During the Rabi season of 2024-25, sowing was completed on 62.81 lakh ha. The production of cereals and pulses is expected to increase by 23 per cent and 25 per cent respectively and that of oilseeds is expected to increase by 22.7 per cent over the previous year.