Maharashtra's Debt Stock Anticipated to Reach Rs 7.82 Lakh Crore in FY 2025
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Synopsis
Maharashtra's debt stock is projected to rise to Rs 7.82 lakh crore in FY 2025, indicating a 10% increase from the previous year. This growth is aligned with GSDP recommendations, with the state heavily relying on internal debt. Grant allocations are expected to decrease significantly, impacting overall financial management.
Key Takeaways
- Debt stock to reach Rs 7.82 lakh crore
- 10% increase from last fiscal year
- 17.3% of GSDP
- Majority from internal debt
- Grants expected to decrease by 19.5%
Mumbai, March 7 (NationPress) The debt stock of Maharashtra, which includes all outstanding loans and liabilities, is projected to rise to Rs 7,82,991 crore in 2024-25, marking an increase from Rs 7,11,278 crore in 2023-24—a growth of 10 percent.
According to the Economic Survey for 2024-25, this estimated debt stock will represent 17.3 percent of the Gross State Domestic Product (GSDP), remaining well below the 25 percent threshold recommended by the Finance Commission and the Maharashtra Fiscal Responsibility Budget Management Act of 2006.
In the 2024-25 Budget Estimate, the primary source of this total debt stock is the state's internal debt, projected at Rs 6,37,141 crore (81.4 percent). In contrast, the debt stock recorded in 2018-19 was Rs 4,07,152 crore (16.1 percent), which has seen a steady rise over the years to Rs 4,51,117 crore in 2019-20 (17 percent), Rs 5,19,086 crore in 2020-21 (19.9 percent), Rs 5,76,868 crore in 2021-22 (18.3 percent), and Rs 6,29,235 crore in 2022-23.
The total outstanding guarantees at the conclusion of 2022-23 stood at Rs 66,726 crore (16.4 percent) of total revenue receipts. The urban development department accounted for the highest outstanding guarantees at 40.6 percent, followed by the public works department at 27.9 percent and the industry, energy, and labor department at 27.1 percent.
The Economic Survey anticipates that the state will secure Rs 70,375 crore in grants over a five-year period from 2012-22 to 2025-26. However, it is projected that grants-in-aid will decrease by 19.5 percent in 2024-25 (BE) compared to the previous year. The anticipated grants-in-aid for 2024-25 are Rs 52,715 crore, which is Rs 65,444 crore less than the 2023-24 Revised Estimate. Additionally, loans and advances are expected to decline to Rs 9,721 crore from Rs 16,354 crore last year.
The total expenditure on subsidies is projected to be Rs 33,063 crore in 2024-25, which includes Rs 5,685 crore for energy tariff concessions for agricultural pump consumers, Rs 5,000 crore for premium subsidies under the Pradhan Mantri Crop Insurance Scheme, Rs 3,600 crore for incentives under the package scheme of incentives, Rs 1,750 crore for the transport commissioner establishment, Rs 1,250 crore for the Gharkul Yojana aimed at Scheduled Castes and Nav Buddha individuals (rural), Rs 1,200 crore for industrial energy tariff concessions, and Rs 1,000 crore for the Namo Shetkari Mahasanman Nidhi Yojana.
As stipulated by the GST (Compensation to States) Act, 2017, states are entitled to compensation from the central government for revenue losses. As such, a total compensation of Rs 1,20,593 crore was due from the Centre, of which 100 percent has been received up to January of this year.
