Maharashtra economy to register negative 8% growth in 2020-21: Economic survey
Maharashtra’s economy is expected to register an 8% negative growth in 2020-21, with industry and services sector being worst hit by Covid-19 pandemic at a negative growth of 11.3% and 9% respectively, according to the state’s economic survey tabled in the state legislature on Friday.
Agriculture and allied activities is the only sector to be least hit by the pandemic and is expected to register a growth of 11.7% owing to a 113.4% monsoon, the report said.
Deputy chief minister and finance minister Ajit Pawar tabled the survey in the state assembly, while minister of state for finance Shambhuraj Desai presented it in the council.
The pandemic has affected the Gross State Domestic Product (GSDP), which is expected to drop to ₹2,661,629 crore, ₹156,925 crore down from ₹2,818,555 crore in 2019-20.
Likewise, the per capita state income too has dropped significantly to ₹188,784 in 20201-21, from ₹202,130 the previous year.
The revenue receipts of the state government during the current fiscal was also hit badly owing to the pandemic, the report stated. ”The revenue collection between April and December 2020 was ₹176,450 crore (or 50.8%) of the estimated receipts of 347,457 crore in 2020-21,” the report stated.
This means the revenue receipts estimated are expected to report a huge deficit, affecting the spending on development works and social schemes. The state had allocated 68.7% of the revenue receipts for development works in 2020-21.The budget had earmarked 17.8% of its funds for capital expenditure.
The agriculture growth has been attributed to a satisfactory rainfall and an overall increase in the agricultural production. “Crops sector expected to grow by 16.2%, livestock by 4,4% and forestry and logging by 5.7%,” it said.The production of the cereals, pulses, oilseeds, cotton and sugarcane is expected to increase by 60%, 14%, 28%, 33% and 40% respectively.
The debt stock of the state is expected to touch ₹520,717 crore in 2020-21, from ₹464,020 in 2019-20, and is 19.6% of the GSDP. The interest paid on the debts in the current financial year is ₹35,531.
The pandemic notwithstanding, former finance minister and BJP leader Sudhir Mungantiwar blamed Maharashtra Vikas Aghadi government for the negative growth of the economy. “The figures from the economic survey are disturbing. The dip in the growth rate is the result of the failure of the state government to take corrective steps during the pandemic. The state government is blaming pandemic for the negative growth of the economy, but it should introspect on its failure.”
Raising concern about the heavily impacted industry sector, Santosh Mandlecha, president Maharashtra Chamber of Commerce, Industry and Agriculture, said, “Maharashtra government has been boasting about the investment brought in the state over the past one year. Chief minister Uddhav Thackeray recently announced the signing of a memorandum of understanding for investment worth crores of rupees, but the state government should ensure that the investment actually materialises. The industry sector will have an impact on other sectors and thus needs to be given due importance.”