Maharashtra’s interim budget for financial year 2019-20 will not impose spend cuts in the run up to the upcoming Lok Sabha and Assembly elections. The budget will allocate about ₹20,000 crore on the arrears to be paid under the 7th Pay Commission and a loan waiver given to lakhs of farmers, Minister of Finance, Planning and Forests Sudhir Mungantiwar said on Tuesday.
He confirmed that the transition budget will include a vote-on-account highlighting the achievements of the Maharashtra government. The vote-on-account will be presented when the Assembly meets for the budget session in February.
Last year, Mr. Mungantiwar had presented a ₹15,275 deficit budget for 2018-19, blaming the Opposition for what has ailed the State’s economy for the past 15 years. It focussed largely on infrastructure and agriculture. “We are trying our best to ensure no spend cuts in
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The Finance Department has already hinted that the budget is unlikely to impose tax cuts with little or no room for it after the Goods and Service Tax (GST) roll out. Mr. Mungantiwar is hoping for further relief in the form of concessions from the Centre in GST rates. “We have learnt that by about January 10 new GST concessions in the construction and housing sectors will be announced. This will be a further relief,” he said.
The fifth budget of the incumbent Devendra Fadnavis government will also seek the Assembly’s nod for expenditure to be incurred during part of the fiscal year or minimum of four months, senior officials said. The interim budget will typically retain the income and expenditure sides, along with the usual heads to only present the government’s vision for the next five years. Once the four-month period is over, revised estimates will be presented for a full year by the new government, U.P.S Madan, Additional Chief Secretary, (Finance), Maharashtra Government said earlier.