State to ask Centre for time to improve revenue | Latest News India - Hindustan Times
close_game
close_game

State to ask Centre for time to improve revenue

Hindustan Times | By, Mumbai
Nov 04, 2014 12:45 AM IST

Worried about the loss of about Rs800 crore grant because of the revenue deficit in the state, the new government has decided to request the Centre for more time to ensure surplus. The peril of a huge revenue deficit, estimated to be around Rs26,000 crore by the end of the fiscal year, is looming large because of the election sops announced by the former Congress- Nationalist Congress party (NCP) government.

Worried about the loss of about Rs800 crore grant because of the revenue deficit in the state, the new government has decided to request the Centre for more time to ensure surplus. The peril of a huge revenue deficit, estimated to be around Rs26,000 crore by the end of the fiscal year, is looming large because of the election sops announced by the former Congress- Nationalist Congress party (NCP) government.

The projected deficit, in the budget tabled in June 2014, was Rs4,100 crore, which is estimated to go up considerably.

Hindustan Times - your fastest source for breaking news! Read now.

The state can lose the central annual grants for deviations in financial reform and budgetary management, according to the rules of the 13th Planning Commission.

“We are in the last year of the 13th Planning Commission and there is a possibility of the state losing its grant. We have decided to request the Centre to give us more time to take the state revenue in surplus. We are hopeful that the government will accept the demand, considering the change in leadership,” Swadheen Kshatriya, chief secretary, told HT.

When asked how much time the government is going to seek, he said they are demanding “reasonable time” after the fiscal ends on March 31, 2015.
Chief minister Devendra Fadnavis had asserted that his government will review the sops and schemes announced by the outgoing government.
He claimed if the government implements the schemes, the annual burden on the exchequer will be close to Rs52,000 crore.

According to officials in the finance department, the waivers given to farmers on their electricity bills and free medicines in government hospitals alone are expected to cost the government Rs15,000 crore.

Fadnavis said most of the schemes announced were non-starters because of the absence of budgetary allocations.

Finance department officials said compensation of more than Rs12,000 crore given to farmers for their losses because of drought, floods and hailstorm in the past three years are major factors for the revenue deficit.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Surendra P Gangan is Senior Assistant Editor with political bureau of Hindustan Times’ Mumbai Edition. He covers state politics and Maharashtra government’s administrative stories. Reports on the developments in finances, agriculture, social sectors among others.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On