State economy on sound footing, avers Shivankar

PUNE, May 5: Debunking reports that the economic situation of Maharashtra was not very promising, Finance Minister Mahadev Shivankar today d...

PUNE, May 5: Debunking reports that the economic situation of Maharashtra was not very promising, Finance Minister Mahadev Shivankar today dismissed all such theories reiterating that the State was economically on sound footing. His clarifications comes in the wake of allegations levelled against the saffron alliance government for weakening the State8217;s economic position.

Speaking at a meet-the-press programme organised at Patrakar Bhavan, Shivankar pointed out that the State budget was considerably healthier than those of other states. Admitting that the government had taken various debts for various welfare schemes owing to limited revenue, he explained that the debt position of Maharashtra was not as bad as it has currently been projected.

Maharashtra8217;s debt situation was 13-14 per cent compared to 24 per cent to 27 per cent in other states while the country8217;s debt position had already exceeded 35 per cent, he revealed. Seeking to dispel the notion that the State was lagging behind in terms of industry, he reiterated that Maharashtra was very much at the forefront in this crucial area. While other states sometimes scored in terms of inviting massive projects, only then did the State fall behind, he admitted. The minister quoted the recent survey conducted by the American Embassy which revealed that Maharastra provided the maximum facilities for industry, he underlined the need for common minimum facilities to be provided in all states to cut down unhealthy competition. Shivankar said he would shortly place a proposal to this effect before the new government.

The Minister said that the government has initiated an ambitious effort to computerise all the district-level treasuries throughout Maharashtra within the next few months to speed up procedures regarding salaries and revenue in the State.

Shivankar said that although the government released funds in time, due to procedural delays, the speedy disbursal of payments had become a matter of concern. Around Rs 50 crore have already been sanctioned for the project which would ensure speedy transactions besides considerably reducing administrative work, he said, adding that by the end of the day, he would be able to take stock of the revenue position of the State. A steering committee has already been appointed, he said, expecting work to get completed by August 30. He expected computerisation of treasuries at the taluka level to get underway next year.

Asked to comment on the spate of suicides among farmers in the cotton belt of the State, the Finance Minister said that if the farmers were driven to suicide due to a debt trap, it was a matter of grave concern. Indicating that the farmers may have had other reasons for resorting to this extreme step, he said that this matter would have to be investigated thoroughly.

Revealing that more than Rs 2500 crore were locked in sales tax, the minister stated that a Settlement Commission would shortly be formed to consider this serious issue. Attributing the slowing of revenue recovery to the lack of irrigational facilities, the minister commented that he was exploring the possibility of a crop insurance scheme for grapes. The government will grant of compensation of Rs 10,000 per hectare for Alphonso mangoes. Within the next three years, the government will provide employment opportunities to 15 lakh people.