Mumbai, March 11 Maharashtra Chief Minister Devendra Fadnavis acknowledged financial pressures on the state economy on Wednesday, while asserting that the state's debt-to-GSDP ratio is lower than several other states, and rejected allegations that allocations to the social sector have been cut or diverted.
Responding to the debate on the state budget in the legislative assembly, the chief minister said that statistics should not be viewed in a one-sided manner, as both the debt stock and the size of the economy have grown over the past decade.
He said the state's debt stock has risen from about Rs 3 lakh crore in 2013 to Rs 9.32 lakh crore, while the Gross State Domestic Product (GSDP) has increased from Rs 16 lakh crore to Rs 51 lakh crore.
"Maharashtra's debt-to-GSDP ratio stands at around 18 per cent, which is lower than several other states, including Telangana, Karnataka, Andhra Pradesh, Kerala, and Tamil Nadu," said Fadnavis, who holds the Finance portfolio.
Maintaining that the state still has borrowing capacity, he said the key issue is to ensure that funds raised through borrowings are utilized properly.
The chief minister acknowledged financial pressures but said the government has the capacity to find solutions.
He rejected allegations that allocations to the social sector have been reduced or diverted.
"Welfare initiatives such as the Laadki Bahin scheme and free electricity for farmers have been implemented while maintaining fiscal discipline. The fiscal deficit stands at about 2.78 per cent of the GSDP, while the revenue deficit is around one per cent," he added.
Fadnavis emphasised that the social sector hasn't been neglected and despite the Ladki Bahin Scheme and free electricity to farmers, the state remains financially sound.
The chief minister said the state's final irrigation potential is estimated at 81 lakh hectares, of which irrigation capacity has been created for about 57 lakh hectares, with nearly 70 per cent utilisation.
Highlighting the state's focus on renewable energy, Fadnavis said non-conventional energy generation is expected to reach 52 per cent by 2030 and 65 per cent by 2035.
"A new battery-based technology to store green energy is also being developed, for which a budgetary allocation of Rs 1,650 crore has been made, while private investment of about Rs 3.12 lakh crore is expected in the sector," he added.
The chief minister further said the state's electricity generation capacity at 45,000 MW is expected to reach 82,000 MW by 2030. He added that contingency measures are in place to ensure an uninterrupted supply even if plants face delays.
"Industrial power consumption grew around 8 per cent last year, higher than the national average. Electricity tariffs have been maintained at low levels with reductions in agricultural surcharges and household tariffs for zero to 100 units are expected to fall by 24 per cent over the next five years," he added.