Maharashtra's interim budget for 2009-10, which estimates the revenue deficit at Rs 8,462 crore, won't affect developmental works, Finance Minister Dilip Walse Patil informed the Legislative Council on Thursday.
Maharashtra's interim budget for 2009-10, which estimates the revenue deficit at Rs 8,462 crore, won't affect developmental works, Finance Minister Dilip Walse Patil informed the Legislative Council on Thursday.
"Though there is Rs 8,462 crore deficit estimated in the budget, no developmental work would be affected by it," he informed the Council in reply to a discussion on the budget.
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Conceding that the state was reeling under the debt burden of Rs 1,58,519 crore, the minister said there is no problem in repayment of the loan as the interest rate is between six and eight per cent.
Elaborating on funds made available for developmental works, Walse Patil said a provision of Rs 2,500 crore has been made for District Planning and Development Committee (DPDC) and the Collector and Commissioner have been given authority to sanction expenditure. Earlier, the provision was Rs 1,000 crore, he added.
"The Centre has permitted all states to borrow up to 3.5 per cent of their total income for development works and the loan taken by Maharashtra so far is 3.16 per cent of the income," he said.
Focussing on the investments in state, Walse Patil said so far, Rs 18,730 crore have been invested through small and large industries and 23,000 jobs have been generated. Incentives of Rs 1,696 crore were given to industries, he said.
On the issue of farmers' suicides, Walse Patil said with the loan waiver announced by the state and Centre, fresh loans were made available.
"Fresh loans of up to Rs three lakh were made available with reduced interest rate of four per cent this year. Subsidies were also given on fertilizers," he said.
After the Congress-NCP led government accepted the report on irrigation backlog committee in 1999, the backlog has come down to Rs 796 crore from Rs 5,000 crore in 2002-03, he said.
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