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As the state got only 70 per cent of normal rainfall, agriculture and allied activities are projected to fall by 8.5 per cent. The area under rabi crops is expected to decrease by 27 per cent and foodgrain production is estimated at about 10 million tonnes, about 31 per cent less than in 2013-14. The Survey estimates a 28 per cent fall in production of cereals, of 45 per cent in pulses, of 53 per cent in oilseeds and 25 per cent in cotton. However, sugar cane output is estimated to rise 10 per cent.
The industrial sector is expected to grow four per cent, with a major contribution from growth of electricity, gas and water supply at 16.3 per cent and construction by 10.4 per cent. However, manufacturing is expected to grow at only a paltry 0.5 per cent. The services sector’s growth is estimated at 8.1 per cent.
Public debt is estimated at Rs 300,477 crore for 2014-15 compared to Rs 271,845 crore (revised estimate) of 2013-14, a rise of 10 per cent.
The debt would be 17.8 per cent of gross state domestic product (Rs 947,550 crore at 2004-05 prices), well within the 24.3 per cent limit set by the 13th Finance Commission. The average cost of borrowing is expected to remain at 8.8 per cent for 2014-15.
Public debt was Rs 181,447 crore in 2009-10. it has been rising an average annual rate of 10.6 per cent. Interest payments have increased from Rs 15,648 crore in 2010-11 to Rs 17,505 crore in 2011-12 to Rs 19,076 crore in 2012-13 to Rs 21,373 crore in 2013-14 (revised estimate) to Rs 23,805 crore 2014-15 (budget estimate).
State revenue minister Eknath Khadse already announced in the state legislature that despite high public debt and delicate financial position the government will raise money through loans if needed to provide much needed relief to farmers hit by untimely rainfall and hailstorm in various parts of the state.
The revenue deficit is estimated at Rs 4,103 crore and the fiscal deficit of Rs 30,965 crore. The per capita income at current prices is estimated at Rs 1,17,091 during 2013-14 compared to Rs 1,03,856 in 2012-13.
On investments in industries, Economy Survey says during August 1991 and October 2014, Maharashtra has maintained its pre-eminence in attracting 18,709 industrial proposals (17.98%) compared to 12,684 (12.10%) in Gujarat, 9,307 (8.95% in Tamil Nadu, 8,506 (8.18%) in Andhra Pradesh. However, Gujarat has overtaken Maharashtra and other states when it comes to the total investment in these proposals. Investments in Gujarat were of the order of Rs 13.18 lakh crore (12.23%) compared to Rs 10.63 lakh crore (9.86%) in Maharashtra. Of these 8,376 projects (44.8%) with proposed investment of Rs 2.54 lakh crore (23.9%) were commissioned in the state.
As far as irrigation sector, which was in discussion due to the multi crore scam unearthed during the Congress-NCP government, the Economic Survey says the irrigated area in command area rose to 3.26 million hectare in 2013-14 from 2.44 million hectare in 2012-13.
Subsidies & government guarantees
The government has provided subsidies worth Rs 13,770 crore during 2014-15. Of these, Rs 9,000 crore given as compensation to the state run Maharashtra State Electricity Distribution Company for subsidised tariff to agriculture and power looms, Rs 2,500 crore to industrial units including mega and industrial projects, Rs 1,508 crore to Maharashtra State Road Transport Corporation for compensating the losses made while providing concessional fares to certain categories of passengers including senior citizens, students and freedom fighters. Besides, Rs 762 crore were provided for food grain distribution and related schemes such as Antyodaya Anna Yojana and Annapurna Scheme.
Moreover, the government has given outstanding guarantees of Rs 9,388 crore at the end of 2012-13. The highest guarantee of 38.1% was given to the department of cooperation, marketing and textile followed by 14.7% to water supply and sanitation, 14.2% to public works, 13.3% to industry, energy and labour and 10.5% to Planning Department.
