Maharashtra government is considering to float Irrigation Bonds with less interest rates to fund projects, State Minister for Revenue Eknath Khadse said on Friday.
He was replying to supplementary queries raised on a starred question by Sharad Ranpise (Congress) during the Question Hour in the Legislative Council here.
Replying to a query over raising resources to generate income, he said in the recent years Non Plan expenditure is on the rise.
"Government is considering floating Irrigation Bonds with less interest rates to fund water department projects. The state is fast reaching its threshold limit in respect of levying more taxes. If more taxes are levied it could lead to resentment," he said.
Khadse said that government could consider plugging leakages and curb wasteful expenditures. He informed the House that the current debt burden on the state now stands at Rs 3,30,000 crore.
"Although the government can increase taxation on luxury, excise, it can lead to theft. As per the credit limit fixed by the Centre for the state in respect of state GSDP we have still some space left to raise loans. The government can raise loans up to limit of Rs 35,000 crore," he said.
Khadse said more money will be required to bear the burden of 7th Pay Commission.
"Hence, the government has taken decisions to settle land deals, auctions of lands through which government hopes to raise Rs 30,000 to Rs 40,000 crore," he said.
The minister while responding to further queries, said till January end this year, 70 per cent of budgetary allocations have been released.
"The government has not imposed any cut on spending allocations for District Planning Development Committees," Khadse said.