Not ignoring fiscal discipline, making all efforts to be $1 trillion economy, Ajit Pawar

Sanjay Jog

Undeterred by financial constraints, Deputy Chief Minister Ajit Pawar has rolled out a road map for Maharashtra to be $1 trillion economy by pushing growth across sectors. In an interview with IANS he explains government’s strategy

Q: Don’t you consider the estimated rise in revenue deficit and fiscal deficit in 2025-26 is a matter of serious concern?

A: During the budget for 2025-26, the revenue deficit is estimated at Rs 45,891 crore and fiscal deficit at Rs 1,36,000 crore. Let me tell you the government has been successful in keeping the fiscal deficit below 3 per cent of gross state domestic product (GSDP) under the Fiscal Responsibility and Budget Management Act. Further, state’s revenue deficit has been consistently less than 1 per cent of GSDP. The government has not given a go bye to fiscal discipline.

Q: Similarly, the state’s debt stock is expected to be Rs 9.32 lakh crore in 2025-26. Does it not impact the spending on development works?

A: The GSDP in 2025-26 is expected to Rs 49.39 lakh crore against Rs 45.31 crore in 2024-25. The state’s tax revenue is expected to increase by 6.41 per cent to Rs 4,77,400.20 crore in 2025-26 against Rs 4.48,630.57 crore as per the revised estimate for 2024-25. Against this backdrop, the state debt stock is estimated at Rs 9.32 lakh crore but it will be 18.87 per cent of the GSDP which is below 25 per cent of the limit proposed by the Fiscal Responsibility and Budget Management Act. The government is making all efforts to further give a push to increase its revenue to weather the situation. Efforts to increase development rate through capital expenditure aimed at stimulating the development cycle. The target is to increase Mumbai Metropolitan Region's economy to $300 billion by 2030 and $1.5 trillion by 2047.

The government will make special efforts to secure more central funds for the state through centrally sponsored schemes.

Q: There are limitations to increase taxes under the GST regime. What measures are being taken to ensure fund availability?

A: The state’s Goods and Services Tax (GST) revenue is expected to grow by 12-14% annually. Innovative measures such as public asset monetization, financing from international financial institutions, and project streamlining will be taken to ensure smooth fund availability for ambitious schemes.

Q: To achieve a $1 trillion economy target, boost for time bound infrastructure development is needed. What you have proposed in the budget?

A: Sufficient budgetary provisions are made for highways, ports, airports, waterways, bus transport, railways, and metro systems. Efforts will be made to ensure quality rural roads, with substantial financial backing for state highways and district roads.

A new housing policy will soon be announced, with Rs 15,000 crore allocated for rural housing and Rs 8,100 crore for urban housing projects in the next 5 years.

There has been a significant 33% increase in the state’s annual plan, with a 42% increase in Scheduled Caste and 40% increase in Scheduled Tribe schemes.

A high-level committee will evaluate and streamline ongoing schemes to optimize resources and suggest improvements.

In addition, the government will soon release new industrial policy to attract investment of Rs 40 lakh crore and creation of 50 lakh jobs in five years. It will also release MSME policy, space policy, circular economy policy, electronic policy and gems and jewellery policy to attract more investments and thereby maintain state’s preeminent position.

Q: Opposition has criticised the government for not announcing increase in aid of Rs 2,100 from Rs 1,500 to beneficiaries under Ladki Bahin Yojana and farm loan waver. What is your take?

A: The MahaYuti has come back to power. We have never said that the monthly financial aid will be increased immediately to women beneficiaries under the Ladki Bahin Yojana. We had only said during assembly election that after voted to power we will increase the aid. Have I ever made a statement when the aid will be given? Show me. We will announce from when there will be rise and after that the women beneficiaries will start getting it. I have never made any statement on the farm loan waiver.