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Maharashtra to grow at 9.4%, but industrial growth to decline

Published On : 18 Mar 2017

Mumbai (The HIndu): State economic survey for 2016-17 says agriculture to look up due to good monsoon. While the Economic Survey of Maharashtra for 2016-17 has projected a better growth rate for the State’s economy at 9.4%, which is 0.9% more than the estimate for the previous fiscal year, it has estimated a fall in growth for the key industry sector to 6.7% from 7.5% last year. The survey, released on Friday, estimates the real Gross State Domestic Product (GSDP) at ?18,15,498 crore.

For the second consecutive fiscal year, agriculture and allied activities have registered a negative growth rate: (-)4.6% for 2015-16 and (-)11.2% in 2014-15. Thanks to a poor monsoon, production of major crops decreased substantially during 2015-16, while that of foodgrain declined by nearly 27% over the previous year.

Oilseed production dropped by nearly 9.1%, and sugarcane, fruits and vegetables too registered a decrease in production by 21.1% and 3.4% respectively. Only cotton registered a 10.8% growth. The survey, however, estimates double-digit growth for the sector at 12.5% for 2016-17, as the State benefited from a good monsoon in the current fiscal year.

Growth in industry sub-sectors like mining, manufacturing and construction is expected to slow down.

The per capita Net State Income (Per Capita NSDP) at current prices is estimated at ?1,47,399 crore for 2015-16; the same was ?1,32,341 during 2014-15. With revenue expenditure expected to be ?2,24,455 crore as per the 2016-17 budget estimate and revenue receipts at ?2,20,810 crore, the State’s revenue deficit stands at ?3,645 crore, while fiscal deficit is estimated at around ?35,031 crore. The State’s debt stock is estimated to have gone up to ?3,56,213 crore from the revised estimate of ?3,20,210 crore for 2015-16.

In all this, there is some solace, with the survey stating that as per 2016-17 budget estimates, the percentage of fiscal deficit and debt stock to GSDP is well within the fiscal limits stipulated by the 14th Finance Commission under ‘Consolidated Fiscal Reform Path’.

Of the total revenue expenditure of ?2,24,455 crore, 35.6% is being spent on salary and wages, 10% on pensions, 40.9% on maintenance, purchase of goods and services and 12.6% on interests on loans.

“When we took charge, the State economy’s growth rate was 5.4%, which we have taken to 9.4%. I am confident we will witness double-digit growth in the next year ,” Finance Minister Sudhir Mungantiwar said.

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