Faced with bulging deficit and a need to increase investments, the Maharashtra government has sought suggestions from finance experts, industry bodies, bureaucrats and other stakeholders for preparing the upcoming State budget for the next fiscal.
State Finance Minister Sudhir Mungantiwar has sent letters inviting suggestions that can be included in the budget to spur industrial development in the State.
An official from the general administration department said that Mr. Mungantiwar’s office has also sent letters to Chief Ministers of various States, requesting them to inform him about special schemes or ideas implemented by their respective states in the interest of citizens.
“Finance Minister has written to Federation of Indian Chambers of Commerce and industry (FICCI), Maharashtra Chamber of Commerce, Industries & Agriculture (MCCAIA) and other organisations and institutes related to finance and planning. He has even sought suggestions from eminent economists,” the official said, without disclosing their names.
Views of secretaries of all departments of the State administration have also been sought to make the budget more people oriented.
“He (Mr. Mungantiwar) is keen to bring the State out from the huge debt the state is currently reeling under. He wants to introduce new schemes, ensuring at the same time that expenditure is controlled. The best way to do this is to increase revenues,” the official said.
Massive revenue deficits and an ever decreasing capital expenditure is the major challenge, finance department faces, he added.
“The State needs a budget that proposes ways to increase revenues and brings out people friendly schemes. The budget’s success depends on how well he balances the two of them,” he said.
Some of the suggestions that the Minister has received already are direct cash transfer to beneficiaries, a review of outdated schemes and knitting together similar schemes to make them easier to implement.
Later, talking to reporters, Mr. Mungantiwar said the decision to incorporate ideas suggested by other States for the forthcoming budget was taken after the government observed that innovative schemes implemented by them had made good impact.
“We do not know the demands from a particular type of industry till they suggest them to us. Different regions have different demands. I will speak to experts and industry bodies, economists and even MLAs and MPs. A few IAS officers have suggested some really good ideas that will be a part of the budget,” he said.
Citing some innovations and practices followed in other states that proved to be successful, the Minister said Maharashtra can seek ideas from them.
“Nagaland has made very use of bamboo sticks that we can replicate in Chandrapur district. Goa and Kerala are doing exceptionally well in tourism. States like Rajastan, Madhya Pradesh, Chhatisgarh too have their own specialisation that we can make use of,” Mr. Mungantiwar added.
He, however, admitted that a plethora of schemes acquired from different sources cannot be implemented in a single year.
“We at least will have data which can prove useful for us in future,” he said.
According to the letter sent from the Minister’s office, Maharashtra is reeling under debt of Rs. 3,00,477 crore and pays an interest of Rs. 23,805 core per annum.
