Chavan justifies Maharashtra debt burden

Maharashtra Chief Minister Prithviraj Chavan has rejected a demand by the Opposition to release a white paper on the state of finance amid burgeoning debt and a deteriorating financial position.

Instead, the chief minister justified the debt burden, which rose to Rs 2.36 lakh crore for the financial year 2010-11, saying it was at 20 per cent, well below the limit of 26 per cent of the gross state domestic product prescribed by the finance ministry.

“We are borrowing to create assets. Investment in the economy leads to growth, employment and welfare,” the chief minister said.

Chavan, who was accompanied by his deputy Ajit Pawar, was speaking to reporters after the conclusion of three-week monsoon session of the state legislature. The chief minister was responding to the leader of opposition in the assembly Eknath Khadse’s criticism, and reiterated that the soaring debt was below the limit prescribed by the finance ministry.

Khadse had dared the government to come out with a white paper on the state’s present economic condition. “The government is not doing so, as it does not want to disclose that the state’s bankrupt. Maharashtra’s credit rating has been downgraded from AAA+ to B-. Practically, the state has no credit rating now,” Khadse had alleged.

Meanwhile, three days after three farmers were killed in police firing in Maval near Pune, Home Minister R R Patil on Friday announced suspension of two police officers who were seen firing at fleeing farmers.

Police Inspector Ashok Patil and Sub-Inspector Ganesh Mane were suspended. Six policemen had been suspended yesterday for damaging cars. The Maval firing on protesters against piped water supply from Pawna dam rocked the proceedings of both the houses of the legislature for the fourth day on Friday.

Leader of Opposition in Assembly Eknath Khadse, Opposition leader in Council Pandurang Phundkar and group leaders of opposition parties in Legislature met Governor K Sankaranarayanan at the Raj Bhawan on Friday and demanded the dismissal of the state government.

"This is not the first instance of firing during this government's tenure," Khadse said. "This is the second such instance in last 15 days," he said. MLAs from the Shiv Sena and the Maharahstra Navnirman Sena too raised slogans in front of the Assembly in protest against the police firing.

Earlier in the day, the opposition alleged that one of the victims, Moreshwar Sathe, was killed in an encounter. However, Sandeep Karnik, Superintendent of Police, Pune (Rural) denied these charges and said they were false.

Khadse alleged the needle of suspicion goes towards deputy chief minister Ajit Pawar who is believed to have ordered police firing. Curiously, Khadse gave a clin chit to home minister RR Patil. However, Pawar vehemently refuted Khadse's claim and said the inquiry instituted by the state government by a retired judge of the Bombay high court would also probe who has instigated the protestors.