M'rashtra debt seen 15% up at Rs 1,85,801 cr in FY10

The debt of Maharashtra Government is expected to increase to Rs 1,85,801 crore during 2009-10, an Economic Survey report has said.

The total debt increased from Rs 97,674 crore during 03-04 to Rs 1,42,383 crore during 2007-08. The debt was Rs 1,61,277 crore in 2008-09, the report, which was tabled in the state legislature yesterday, stated.

It says that the overall fiscal liability of the state has increased at an annual growth rate of 10 per cent during 2003-04 to 2007-08.

During 2008-09, the government raised loans to the extent of Rs 27,321 crore of which Open Market Borrowings were Rs 17,762 crore.

As per recommendations of the 12th finance commission, the central government has discontinued to advance loans and advances to the state government except for externally aided projects, as a result of which, the extent of fresh loans received from the central government has reduced substantially.

The loans raised from the central government during 2008-09 were Rs 769 crore. Considering the repayment or redemption of loans of Rs 8,427 crore, the net loans raised by the government amounted to Rs 18,894 crore.

Apart from the borrowings, the outstanding guarantees given by the state government at the end of 2007-08 amounted to Rs 36,075 cr.

The major guarantees given by the government  were to the co-operation, marketing, textile departments (Rs 15,433 crore), water resources department (Rs 5,563 crore) and Industry, labour and energy (Rs 4,967 crore).