In a bid to improve the revenue situation, the cash-strapped Maharashtra government has decided to review all the 1,256 government schemes. The government has also decided to scrap the schemes that have failed to show results or have proved to be corruption-laden. The revenue deficit is likely to mount to more than Rs 11,000 crore this fiscal.
State finance minister Sudhir Mungatiwar told Hindustan Times that the schemes, which were announced by the previous government for the sake of garnering votes ahead of the assembly election, are also being reviewed.
“The schemes that did not take off will be scrapped. The pre-poll schemes and those that have not proved beneficial will be scrapped or re-launched with modifications. This will be on the lines of the review being made by the Centre,” he said.
Mungantiwar said his department has come out with a viable option for the local body tax (LBT). “We assured before the polls that the LBT will be scrapped and we are firm on this. But the budgetary cycle needs to be undisturbed. The details will be announced in the budget. The traders are not against taxation. They are resisting the exploitation associated with the LBT. The option we are coming out with will be acceptable to the trading community,” he added.
The minister added that various sources are being tapped to boost the state coffers. “We have tapped the ways of mobilising revenue from smaller initiatives such as increasing the fine and penalty for violation of traffic and civic rules. The rise in the GDP and industrial revenue will also help us in mobilise revenue. There will be no need to hike the taxes in the budget to reduce the capital expenditure,” he said.
He added that employment generation, women empowerment, better infrastructure and facilities for farmers will be given top priorities in the ensuing budget.
The minister added that more than 50% of the work on the white paper on the financial condition of the state has been completed and it will be tabled during the budget session. “Our aim is to keep the financial position of the state transparent and also set the direction of the financial treading of the state,” he said.